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.

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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?

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Imagine a Free World of WarcraftImagine a Free World of Warcraft

Once upon a time the folks at Blizzard Entertainment thought they could support the entire world of World of Wacraft by ad revenue. This would have created an MMO experience which would cost you nothing but a bit of annoyance by ad providers; what would the total audience be if the game was free?

Had WoW launched free of charge they would probably have significantly more users playing the game, but the ad revenue from the sheer amount of people would be nothing compared to a monthly charge for eight million subscribers.

Although only a small number of those subscribers are US based, they’re still raking in the cash compared to an ad-based model, even if they were to have triple the subscribers.

However, the Blizzard exec noted: “We didn’t want to charge a subscription, but as we researched market conditions, we realized that wouldn’t support us.”

It’s possible, perhaps, that Blizzard would have fallen under its own weight had they created a world where anyone could play for no charge. Imagine the server utilization, the volume of traffic and the support calls they would get for triple or quadrupal the player base with only ads paying the checks.

Granted, a free system would be excellent in theory, but in practice, making us pay is the only way to throttle our addictions. Sad, but true.

(Thanks, gamasutra)

Retro FlashBack: DragonFire (Atari 2600)Retro FlashBack: DragonFire (Atari 2600)

Now here is another interesting video game for the Atari 2600, the game Dragon Fire consisted of two game screens, one which you ran across a bridge while fireballs were shot at you, you had to duck or jump over the fireball. This screen was a side-scroller style screen (although it doesn’t actually scroll), at the other end of the bridge was a castle door which you’d enter to get to the next screen.

The second screen was more classic “overhead but not really” screen where you ran around this black screen picking up treasures while a dragon at the bottom shot fire at you from below.

As the game increased in level jumping fireballs became more challenging (on the first screen) as you ran because they would come quicker, more often. The second screen would get very difficult very quickly as the dragon would increase in speed and fireball spitting. You could tell how hard the dragon would be as it would change colors from lighter to darker black as you progress stages.

When you finished collecting all the treasure an exit would pop up in the corner and you had to run to it without being burned by the fireballs, that dragon would turn from left to right nearly instantly too! Then, you’d jump into the exit and be back on the bridge again, but this time it was harder. You could die up to 7 times before the game was over (just to show you how hard it is, they gave you a bunch of lives).

The game was tough, frustrating, hard to replay because you were just so nervous and jittery from the last attempt. Graphics were “okay,” nothing to rave at but it was, after all, the 2600.

You can hear all we had to say about DragonFire for the Atari 2600 on Episode 79 of the TD Gaming Podcast!