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 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

Episode 382: Late But Not Too LateEpisode 382: Late But Not Too Late

Due to unforeseen circumstances, this episode was recorded on Monday, but despite the lateness, it’s full of rich news items, including some very disturbing trends in videogames, as well as a question by a listener that got mental juices flowing. This week’s Gaming Flashback is Professor Pac-Man.

The news items include:

  • Headteachers in UK threaten to report parents who let their children play 18-rated games
  • Star Citizen‘s Vanguard “concept” fighter costs a cool $250
  • PC version of Dead or Alive 5 Last Round launches on Steam without key features
  • Zelda delay could ruin Nintendo’s 2015
  • New Jersey game store “swatting” takes an uglier turn

This week’s Question of the Week: “What do you think is the future of older games?”

Episode 345: Old in the ValleyEpisode 345: Old in the Valley

This week’s Jonah discusses an article about ageism in Silicon Valley, while Paul complains about an achievement ruining a casual game he’d spent $200 on. This week’s Gaming Flashback is Dance Dance Revolution.

The news includes:

  • Facebook acquiring Oculus for $2 billion
  • Valve’s Portal coming as Tegra 4 Android App to Nvidia Shield
  • Xbox One may allow loaning of digital games
  • Nintendo, Sony won’t attend PAX East

All this and a little Listener Feedback, with the Question of the Week being “Do you subscribe to videogame magazines now?”

Xbox 360 Price Drop: July 6th?Xbox 360 Price Drop: July 6th?

The new rumor, based on a K-Mart sales sheet, is stating we’re going to see an Xbox 360 Premium price drop this summer (July 6th, 2008). The new price is said to be USD $299, down USD $50 from the last price drop on the 360 hardware.

The sales sheet only shows the 20GB Premium product, but this is probably going to hit all units to keep pricing competitive. This wouldn’t be the first time a price drop has been slipped from a sales sheet for a current generation console and we’re sure Microsoft will deny it this time as well.

This brings the console closer to a Wii price tag, making it much more desirable by the average gamer; will Wii respond with a price drop? More than likely the answer would be “no” due to their inability to keep up with demand. The dry channels for Wii consoles makes the product highly desired but also impossible to promote and market further than saying “we have Wii in stock” because demand is just so high.

Sony will have to watch out, their PS3 product is catching up in terms of hype and demand but a drop in 360 price will yet again put them behind the 8-ball in terms of competitive pricing.

Will you consider a 360 for $299?

(Thanks, 1up)