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

Microsoft Claims EMEA Holiday Sales VictoryMicrosoft Claims EMEA Holiday Sales Victory

Microsoft is reporting their European sales are the best they’ve seen in the history of Xbox 360 sales. They’re claiming the sales are double what they were in the 2007 holiday season. They are saying 8-million consoles have been sold to date in Europe, the Middle East and Africa (EMEA).

Microsoft’s fast to push out their press release, probably hoping to overshadow any reports Sony may be releasing for sales numbers. At this point, we’ll have to believe their press release as fact until someone proves it otherwise; Microsoft would hate to be caught in a lie. Unfortunately, NPD figures aren’t collected in Europe so we have to wait for all the other metric gathering companies to release final December 2007 figures.

Sony could, in fact, see a doubling of their sales figures as well, we’ll have to wait and see.

(more…)

Episode 483: Rolling OnesEpisode 483: Rolling Ones

This week’s podcast has been seriously delayed due to Jonah’s computer going belly up, then having to deal with reinstalling everything. Not to worry, however, since everything on the old hard drive was saved, learn more at desky.com.au. If that weren’t enough, Jonah is enjoying his new Xbox One X Project Scorpio Edition.

The news of the week includes:

  • EA responds to community criticism of Battlefront 2 unlock system
  • L.A. Noire remaster requires 29GB, forcing Switch version to require MicroSD card
  • Physical media still “nation’s format of choice” for video games, says eBay
  • Xbox One S available for lowest price yet

If that weren’t enough, there’s about 30 minutes of outtakes we’re saving for the future as the gang talks about 2018. But that’s for an Outtakes episode.

Episode 689: PlayStation PortableEpisode 689: PlayStation Portable

The guys discuss Apple and Epic going to the Supreme Court, Nic Cage being in Dead by Daylight, the death of Emile Morel, Mortal Kombat 1 fighters, Clockwork Revolution, Skullgirls, and Mojang complaining about Wiki adverts.

The news includes:

  • Jagged Alliance 3 details how it will support two-player online co-op
  • EA confirms single-player Black Panther game from new studio
  • Microsoft tells court Sony “expected to release” PlayStation 5 Slim and ‘handheld PS5’ this year
  • Hi-Fi Rush update includes a new ‘blistering 200 BPM’ challenge

Let us know what you think.