Smart Business Choices During Economic Downturns

Many game studios are being dropped following a bit of an economic downturn in the United States and globally. Activision has to deal with being agile enough to survive the economic times like anyone else and has dropped a few games that had great potential.

Gamers continue to ask the question, “why?” when some of their highest potential games were dropped to the floor. Ghostbusters and BrĂ¼tal Legend are a couple examples of games with eager fans already salivating prior to its launch. Some of these fans are a bit ticked off that Activision named them as dropped franchise opportunities.

People ask why a company holds one “mediocre” title while getting rid of other potentially awesome ones. Don’t forget, this is a business and a good studio/publisher is going to make good business decisions without emotional attachments – those that bring emotions into play may end up with a highly valued product (to them) with no additional potential and lower revenue. This isn’t to say developers cannot be passionate about their games and their industry, they just have to build games gamers will buy and continue to fall in love with release after release.

Activision CEO Bobby Kotick is one of these business savvy individuals who knows where investors will find profits for the future, and he also know how to manage employees, with the use of software like this sample pay stub for payments and more.

“[Those games] don’t have the potential to be exploited every year on every platform with clear sequel potential and have the potential to become $100 million dollar franchises. … I think, generally, our strategy has been to focus… on the products that have those attributes and characteristics, the products that we know [that] if we release them today, we’ll be working on them 10 years from now.” (1up)

Ghostbusters is a great example of a title which could be well received and fun to play but probably wouldn’t be an exploitable franchise. The game, based on a popular movie, has limited potential for yearly releases and huge franchise success. Ghostbusters fans would probably disagree, but that’s when emotion comes into play. Think dollars and cents, not awesome fun gaming.

Oddly enough many of these business decisions from Activision, Electronic Arts and other big publishers arrive when the economy is in free fall and investors are eying your revenue potential. People make their most important and, usually, unfriendly business decisions when their company is at risk.

It’s sad to think money comes first and entertainment value comes second but we’re not the ones trying to make a profitable living in the industry. Put yourself in Kotick’s shoes as he walks into a board meeting to discuss future plans, road maps and profitability – you’d do what you have to do to keep your job, right?

0 thoughts on “Smart Business Choices During Economic Downturns”

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Post

The Beatle’s Change Wii Price Point, Rock Band StyleThe Beatle’s Change Wii Price Point, Rock Band Style

By now everyone is used to paying more for Rock Band than meets the eye. The game disc is usually packed in several bundles for guitars, drums and, of course, stand alone. With The Beatles: Rock Band, MTV Games plans to release one product SKU, a game only disc. That game only disc, on the Wii is going to cost the same as other consoles: $59.99.

beatlesYou remember when Wii games were $49.99 and everyone made titles that hit this price point or lower? MTV isn’t going to stick to this standard, regardless of “last gen graphics” because you’ll buy it anyway, right? Rock Band is one of those games that has hit huge strides in the market over the last few years as people buy big plastic instruments to rock their house.

Now we’re going to see if those same people willing to pay $10.00 more than normal in order to play The Beatles songs. The Wii has a large audience of gamers but they’re the style of gamer that wants a good value for their product, after all, the Wii is cheaper than every other console and the games probably should match its differences compared to games for the other consoles.

This is an interesting decision, as the market plunges into despair MTV gouges games for $10.00 more because “The Beatles” happens to be in the title. Are you going to pay more for the Beatles? Not us.

(Thanks, 1up)

Episode 260: CivilizationsEpisode 260: Civilizations

This week is packed full of gaming goodness, as the winner of the Civilization V contest is revealed. If that weren’t enough, the news items for the week invoked a lot of conversation:

  • New Halo 4 multiplayer details revealed
  • EA dismisses “big layoffs” claim, always “growing and morphing”
  • Rumor: Microsoft finding new ways to “monetize” Xbox Live

The podcast also features some great, heartwarming Reader Feedback as well as a new contest to win a code for Magicka. The question of the week, “What books featuring magic do you like the best?”

ID Software, Not Just One Game AnymoreID Software, Not Just One Game Anymore

As Bob Dylan once wrote, “The times they are a-changin'” and id Software may be ready to change with these times. They’re talking at Quake Con about both DOOM 4 and their next title Rage (a first person shooter car driving game) both utilizing the same engine, the Tech 5 engine, and being developed simultaneously.

Now, this doesn’t mean you’ll have dual release games but it shows that id Software is ready to work on more than a single project at the same time, a big step for them. Although they’re usually working a big engine while finishing up a title to run on such an engine, they’ve got two titles in the works. This is very unlike the little FPS company but it shows they’re ready to meet the challenge of a larger industry.

When the original DOOM arrived there was nothing to compete against them and through the years and into Quake their competition was light years behind. Developers like Epic Games, Bungie and other first-person-shooter genre developers have proven themselves in the industry with many titles and sequels while id releases, seemingly, one game every five years.

For a company with only one or two franchise titles they do take a long time to release another game. This may be due to their engine licensing, no longer under the “Quake” engine name and sticking with its own independant naming convention like ID Tech 4 and ID Tech 5, they’re showing us the company is about engine design seperate from any demos or game prototypes they provide to show off the engine.

To many gamers DOOM 3 was more of a prototype to show people how far graphics have advanced in the last twenty years. Many folks were excited to play but grew bored when they realized it was very much like DOOM 2 but with a graphic revamp. Nostalgia only goes so far before you realize the story and depth behind games like Half-Life, Unreal and Halo have far exceeded a extreme graphical FPS gaming.

It’s time for id to grow from their roots and expand into many game genre’s and build out new independent properties (like Rage) to show the industry they’re not just a one-hit wonder with a huge fan base.

But, you can’t argue with a huge fan base. They’ve got a full conference to show off their stuff, not even Electronic Arts has that!

(Thanks, 1up)