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.

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

Episode 442: RPGs And StuffEpisode 442: RPGs And Stuff

This week’s episode is full of computer roleplaying game goodness, as well as some of the disbelief of a Nintendo-owned Harry Potter franchise. All that and Civilization VI and Turok excitement to boot.

The news includes:

  • Wasteland 3 multiplayer details revealed in new Fig update
  • Civilization VI offers multiple leaders for each civilization
  • Turok 2 remake ‘is coming‘ according to Nightdive Studios
  • Nintendo wanted to buy the rights to Harry Potter in the 1990s

Let us know what you think.

Episode 249: Milestone LoomingEpisode 249: Milestone Looming

For those of you good at math, you might notice that the TD Gaming Podcast is one episode away from a special number. While we have a surprise in store for loyal listeners, there’s still this week’s news to discuss. For starters, the classic Silent Hill 2 is the subject of the Gaming Flashback, even though none of the podcasters have gotten a chance to actually play it.

There’s also some interesting news to discuss, including:

  • Christian group accuses The Old Republic of “warping kids” with pro-gay message
  • Rumor: Next Harmonix project being released on XBLA, PSN, and Facebook
  • EA Sports: SSX will bring extreme sports videogames back to prominence
  • Xbox 720 rumors springing up like wildfire
  • PS Vita continues to struggle in Japan
  • SNK brings Neo*Geo back as a handheld

There’s plenty of Reader Feedback, but there’s no Question of the Week, because there’s a special episode coming up. Ooooh, what could it possibly be?

Episode 401: Intentionally LateEpisode 401: Intentionally Late

This week’s episode was deliberately delayed because there will be a new day we record: Friday, which means the podcasts will be released on Saturday or Sunday. Therefore, the Dr. Who episode preceding this gave us a little space, and now this podcast will be setting the stage for future episodes.

This week’s news includes:

  • Rumor: Caveman game teased by Ubisoft leaked as Far Cry Primal
  • Steam Sections coming to major videogame retailers this November
  • Sony: “Climate is not healthy” for a new PlayStation handheld
  • LEGO Dimensions outsells Skylanders Superchargers and Disney Infinity 3.0
  • Fan turns to the crowd for Pokemon PAX party settlement

Write in the comments and let us know what you think.