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 250: Do the Time Warp AgainEpisode 250: Do the Time Warp Again

It’s the fabulous 250th Episode milestone, and this particular podcast features a major surprise for longtime listeners. Not only is this one of the funniest podcasts in a long while, but there’s plenty of show to go around, too. First, the Gaming Flashback checks out the classic shooter No One Lives Forever, while the Gaming History examines the infamous Gizmondo handheld gaming console.

As for the news:

  • Hirai: Sony could be facing “serious trouble
  • Take Two CEO states “strong become stronger” with next-gen transitions
  • Developer Starbreeze fears Syndicate may be “too hard
  • Oklahoma state rep wants 1% violent videogame tax
  • Ubisoft cuts off legit players With DRM server migration

There’s no Question of the Week, but we’re definitely sure there will be plenty of comments for the podcast hosts.

Episode 411: We Are Experiencing Technical DifficultiesEpisode 411: We Are Experiencing Technical Difficulties

This podcast is delayed due to unforeseen circumstances, but there’s plenty of banter between Jonah and Scott, and 30 minutes of the podcast were removed to be aired as an outtakes at some point. Oh, and there’s plenty of cursing and NSFW content in this particular podcast, so be warned.

The news includes:

  • Starbreeze announces it’ll build a VR arcade venue in Los Angeles
  • Mighty No. 9 unexpectedly delayed by Comcept
  • Nintendo NX set to be new face of Nintendo with busy 2016 planned
  • Five Nights at Freddy’s World pulled from Steam

Let us know what you think.