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 310: Halo Makes You Feel OldEpisode 310: Halo Makes You Feel Old

This week’s podcast features a Gaming Flashback of Halo: Combat Evolved, one of the longest such game segments in the podcast’s history, encompassing a third of the podcast.

This week’s news items includes:

  • Blizzard decides against rolling back Diablo III servers following gold exploit
  • Defiance to get 5 major DLC packs in the next year
  • Report: Next-gen Xbox console called “Xbox Infinity”
  • Obsidian expresses desire to develop Star Wars RPG
  • EA to stop licensing with weapons manufacturers, will keep using branded guns

There’s only one reader response, but there is a Question of the Week: “What videogame genre are you completely burned out on?”

Episode 649: Activision-Blizzard Sued AgainEpisode 649: Activision-Blizzard Sued Again

[This episode has been re-uploaded due to technical issues]

Another week, another time that Activision-Blizzard suffers legal issues — in fact, there are lots of legal shenanigans going on. No Gaming Podcast this week in this short episode, while Microsoft Movie Maker has a comeback.

This week’s news includes:

  • New York City sues Activision Blizzard, says Bobby Kotick is ‘unfit’ to negotiate the Microsoft buyout
  • Reggie Fils-Aimé warned Nintendo about GameBoy Micro
  • Xbox and Bethesda Games Showcase announced for June 12
  • Xbox has helped Fortnite sneak its way back onto iPhones

Let us know what you think.

Wolfenstein for PC, Xbox 360 and PlayStation 3Wolfenstein for PC, Xbox 360 and PlayStation 3

When you hear the word Wolfenstein what game do you think of? Constantly, I recall Wolfenstein 3D and all the memorable times I had building my first person shooter fingers. From a new-generation FPS perspective, Return to Castle Wolfenstein for the PC back in 2001 was my last touch on a Wolfenstein game series. I enjoyed it a great deal and would love to see more out of the game series.

It seems Activision and Raven Software are working on a PC, Xbox 360 and PlayStation 3 game, currently titled Wolfenstein set to be released “when it is done.” The game follows the same concepts as most of the Wolfenstein titles of the past, a bit of dark science fiction and undead matched with World War II settings with Nazi’s and the main character BJ Blazkowicz.

This series seems to be full of re-hash and repeat with plots, characters and overall feel. Developers seem to favor re-makes over sequels to the famous franchise, eventually putting out one or two sequels of their re-make hits well with customers.

Is this the correct direction for the Wolfenstein franchise? In my humble opinion, it doesn’t really matter to me because I’m such a fan of the series. Perhaps they will continue to re-make the game until the larger demographic screams “Not again!”

(Thanks, Eurogamer)