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.

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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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Gaming is mainstream and growing, this is obvious to most video game enthusiasts. Even Jack Thompson has failed in taking down the industry in his efforts on video game violence and general FUD. In order to survive in a mainstream environment publishers and developers are going to target a broad demographic to make them as much money as possible.

The game industry, like other entertainment avenues, is a risky business in which publishers have to pick titles they “predict” will do well in the market while passing on other “risky” propositions. While a the good ol’ shooter title will break sales records, the market cannot rely on one genre to carry the business especially considering many of these titles are forgotten within two months from launch. Publishers are going to be forced in expanding their reach to “family games” in order to finance new blockbuster titles.

Enter family gaming.

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Users Pwn MetaCritic Review SubmissionsUsers Pwn MetaCritic Review Submissions

Although we’ve found Metacritic a userful resource for game reviews, many folks have gone on a user submission rampage to discredit games that haven’t even launched yet. Their first attack was on LittleBigPlanet followed by Resistance 2, now their hitting Gears of War 2.

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This style of attack was popularized in Spore, when Amazon got nailed with poor reviews of the game because Spore’s “Draconic” DRM made people angry. However, it’s more reasonable for people to voice their opinion on a known issue with a game; Gears of War 2 review spamming is just mean.

We use Metacritic as guidance when we do our gaming podcast to understand what games are rated in the industry, but we don’t use user reviews as our main guide. There are plenty of folks out there that may utilize these reviews in more seriousness because they may feel journalists reviews are tainted by advertisers or “the man” and want the common gamers opinion.

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“My advice for our faithful users is to focus your attention on the Metascore for this game and not the thousands of user votes, most of which have been submitted before said users have played the game. This is a gaming community, and if people want to stuff the ballot box, there’s not much I can do at this point. When we upgrade the registration requirements for participation on the site in the near future, this type of thing won’t happen. We’ll post the full legitimate user reviews upon the game’s release. As always, thanks for using the site.” (1up)

So, to those looking for holiday gaming gifts, keep this in mind while you start hunting down games you’ll want to buy.

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