Smart Business Choices During Economic Downturns

November 6, 2008November 6, 2008| schommerschommer| 0 Comment| 1:46 pm
Categories:

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 Brütal 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.

During uncertain times, protecting operations becomes just as critical as protecting profits. Visit FastFireWatchGuards.com to learn about professional fire watch services that help businesses stay secure and prepared.

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

Guitar Hero: HendrixGuitar Hero: Hendrix

As if the week of rumors hasn’t ended, Slash all but confirmed Hendrix as one of Activision Blizzard’s next big hit Guitar Hero games in Rolling Stone Magazine says GameSpot. During the interview with Slash he explained that even “Hendrix will have one” speaking to a stand alone Guitar Hero title.

While Slash isn’t exactly Activision Blizzard’s mouthpiece, he’s probably got a bit of inside information in the industry and probably might not have wanted to say it, but he did. What does that mean to us gamers? Well, for Hendrix fans it means a potential must have Guitar Hero title.

For a few of us, it means another game we’re not going to pickup. Mainly because Guitar Hero is a great franchise when it diversifies its artist across multiple genre’s and multiple artists. It’s hard to doubt the monetary success of putting out a single-artist title game if the artist is as epic and respect as Jimmy Hendrix; a few gamers would surely burn their plastic Guitar Hero guitar to get their hands on this.

This is only a rumor but it’s a pretty solid concept for a real game so we’ll see how it goes. Personally, I’d rather see a full Disturbed Guitar Hero title.

Read MoreRead More

Spore DRM, Less Than TransparentSpore DRM, Less Than Transparent

It turns out Electronic Art’s Spore has some digital rights management (DRM) under the hood that’s irking a few video game players. We use the term “few” lightly, as game players use their voices to be heard and let them ring loud! Taking a gander at Amazon.com’s listing of Spore and you’ll see 797 customer reviews with an average rating of 1-star.

What’s the problem with the DRM? It’s almost easier to ask what isn’t the problem with the DRM in Spore. First, it’s intrusive, install Spore more than three times and you’ll have to call Electronic Arts to have them re-activate the game. Are we renting games now?

To re-activate your game with one more additional install will require you to give proof of purchase, so the comments say and, pretty much, you’re assumed to be pirating the product immediately. That might be over-reacting, a bit, but not really much considering the limitations on the product.

What if the DRM solution goes wrong? What if the game cannot access the Internet upon installation? There are plenty of what-if scenarios one can play out when they find their precious $50.00 game is phoning home to protect itself from you and your habits.

“This caused EA to remove the requirement that the game authenticate online every ten days, changing it to authentication whenever new content was added to the title. Unfortunately, that doesn’t seem to be enough, and the limit on installations is what gamers are now finding most heinous. Review-bombing Amazon is a particularly nasty way of getting the point across as well; casual gamers who aren’t aware of this campaign may not bother to read the content of the reviews and only assume the game isn’t very good.” (arstechnica)

No doubt all the negative press will result in a full on revolt, having gamers who’ve not purchased the title ding it with a 1-star to prove a point, why not? How else shall we fight “the man” and their unholy DRM solutions.

Oddly enough, you can find the game pirated already across the Internet, what has this proven? The game was found on torrent sites before it’s release, already cracked. It’s said they’re using a Sony DRM solution, a known DRM solution, which means hackers whom have already cracked this protection before had it un-shelled in a matter of hours.

What did the DRM get Electronic Arts but a PR nightmare and a bunch of people stealing it off the Internet now that they know it’s already available? Lot’s of publicity for very little gain; imagine the reviews and comments had they chosen to go without a DRM solution and be a pioneer of future technological solutions.Sure, it would be on a torrent site within hours… but it was anyway.

Read MoreRead More