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

Gaming Podcast Episode 216: Goodbye, Farewell, and AmenGaming Podcast Episode 216: Goodbye, Farewell, and Amen

The TD Gaming Podcast heads to an uncertain future, as the TD Gaming Podcast will be closing its run with this cast. Derrick Schommer explains the reason that he and Jennifer will no longer be able to support the podcast, and thank the fans for their devoted support.

So, for old time’s sake, Derrick and Jonah Falcon cover the past week’s news:

  • Firelands is now live on World of Warcraft‘s Public Test Realm
  • New R18+ guidelines drawn up
  • Kojima: This year has become meaningless
  • Chinese labour camp prisoners forced to play MMOs

We also cover the reader feedback over the past couple of weeks, and the Question of the Week is: what would you like to see happen to the podcast?

If this is the truly the last Gaming Podcast, thanks for your support and praise.

Episode 528: Back From DisasterEpisode 528: Back From Disaster

Jonah’s desktop PC finally died completely from irretrievable hardware failure, and this episode was recorded clumsily on his cellphone. Meanwhile, TJ has been enjoying Apex Legends enormously, and gives it a rave review.

Otherwise, this week’s news includes:

  • Activision-Blizzard lays off 800 employees
  • World War Z gets an April release date
  • Dragon Quest Builders 2 comes to Switch, PS4 this summer
  • Chucklefish boss says Sony is responsible for lack of PS4 crossplay

The Question of the Week is “Which game would you love to see remade?”

Resistance 2: Epic Scale of Huge ProportionsResistance 2: Epic Scale of Huge Proportions

E3’s PlayStation 3 press release really started with Resistance 2. They show off a good deal of battle footage against a 300 foot leviathan in the middle of a crumbling city. The game definitely cries “scale” in terms of epic battles, monsters and emotional feel.

The trailer they presented after the game play demonstration was real footage of the game and shows off just how much Resistance looks like War of the Worlds. The trailer even included a radio commentator which reminds you of the War of the Worlds attack and has the same gritty battles, huge alien robots and flying ships floating over the massive city.

The trailer shows the scale and emotional feel of Resistance 2. This game may be a console seller if the trailer and game footage reflects the game and its core feeling. It makes Gears of War look tiny by comparison.

In the end, this exclusive PlayStation 3 title would keep the PlayStation 3 fans highly interested and attached to their beloved console along with bringing new folks to the PS3 domain. This game is definitely out to fight a battle with Gears of War 2.