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.

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 513: Delays and TragedyEpisode 513: Delays and Tragedy

Last week’s episode was delayed by Jonah producing a new show (The Jonah Falcon Show), then by the tragedy on Sunday, August 26. Now, the podcast recorded last week and the one recorded this week have been merged into one big 2+ hour show.

Last week’s news items included:

  • Devil May Cry 5 arrives in March
  • Cyberpunk 2077 quests similar to The Witcher 3 ‘in terms of playtime and complexity’
  • Rumor: Nintendo planning big Switch upgrade
  • Soulcalibur 6 Story Mode and DLC character announced

This past week’s news was simple:

  • EA cancels remaining Madden Classic qualifiers

To be fair, the crew ended up talking about other stuff going on during the week, including the the E3 demo for Cyberpunk 2077 that was finally released to the general public. Gaming still brings smiles to people’s faces.

Episode 589: Waiting for 2100Episode 589: Waiting for 2100

Nintendo has finally given a launch window for their next console, while TJ is slightly distracted by the Chiefs.

This week’s news includes:

  • Titanfall 3 is in development at Respawn
  • As 2020 ends, so does FarmVille
  • Among Us 2 cancelled in favor of ongoing work on the current game
  • Amazon is also warning Xbox Series X preorder customers that their consoles might show up late
  • Spider-Man PS4 owners can’t upgrade to the PS5 version for free
  • Nintendo’s Switch successor will release before 2100

Let us know what you think.

Episode 261: Where in the World is Gaming Podcast?Episode 261: Where in the World is Gaming Podcast?

This week is another bountiful podcast as the crew has a surprisingly long discussion about this week’s Gaming Flashback, Make Trax. The guys also discuss 1990’s kids shows like Reading Rainbow and Where in the World is Carmen Sandiego? The contest winner for a copy of Magicka is also revealed, as some magical books are discussed.

In the news:

  • Rumor: Wii U will cost Nintendo $180 and retail for $300
  • Online petition calls for end to Tera ‘censorship’ in EU
  • Videogame-only Kickstarter alternative debuting at E3 2012
  • NPD: 40% of freemium players pay for in-game upgrades

Interestingly enough, the day after the podcast was recorded, the gore slider issue was resolved.

We also have some great Reader Feedback, but no contest or question this week. Sorry, folks!