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 723: Hellblade and HelldiversEpisode 723: Hellblade and Helldivers

The gang discusses the PC Gaming Show coming June 9, Tesla ending Steam support in its vehicles, Ghost of Tsushima being PlayStation’s biggest single-player PC launch to date (second only to Helldivers 2), Hellblade 2 developer Ninja Theory’s next game reportedly already greenlit by Xbox (and “no plans whatsoever” to close studio), Grand Theft Auto 6 publisher “highly confident” of an Autumn 2025 release window and the Resident Evil 1 Remake is in production and will release in 2026 according to a leaker.

The news includes:

  • This year’s Call of Duty will reportedly launch on Xbox Game Pass
  • Jason Voorhees slashes into the MultiVersus roster
  • Life By You is delayed again

Let us know what you think.

Activision and Blizzard LayoffsActivision and Blizzard Layoffs

If you’ve ever been through an acquisition or merger you’d have expected this news to come, but for those new to the concept it’s simple: you can’t keep everyone. After a complete merger you end up with two sales departments, two IT departments, etc.

Do you really need them all? No, not really. You’ll need to keep some on board in order to “brain dump” your job onto others and hopefully stick around for the long hall. Some employees will probably be shuffled to other job responsibilities while some get packages and a thank you card.

These are some of the growing pains when working towards a successful merger, so don’t be surprised or start spreading rumors when a few people are let go. As someone who’s gone through it in two big mergers I can say that certain departments already know their fate ahead of time. Many IT and sales folk start looking for new jobs the minute the merger is announced.

Has Rare Lost Touch With The Gaming Industry?Has Rare Lost Touch With The Gaming Industry?

In an interesting interview this week at 1up.com, Peter Moore, now at Electronic Arts, believes the skillset that Rare holds is a bit dated for our gaming industry. Moore, best known in his role of VP at Microsoft in their Interactive Entertainment Business division, understands how great Rare and their games once were but seems to believe the industry has passed them by.

Looking at their latest Microsoft titles, mainly Perfect Dark Zero, Viva Pinata and Kameo: Elements of Power, it’s not hard to believe his statements as fact. None of the titles have blown away a market full of Grand Theft Autos, Halo’s and other top selling titles. None of their games hit the epic review scores of Bioshock or Crysis. It’s not all first person shooters are taking the big sales numbers; Spore was given rave reviews by online review sites (sans Amazon) and that’s a completely different style of game.

Popcap’s Peggle has had more fame and glory than some of the bigger titles from Rare, probably made with less money. Is Rare a dying breed of developers with no good direction to react to the changing ways of the game industry?

(more…)