Gamers around the world are going to feel the pain in the 2009 holiday season after the economy shakes apart many great development studios. Electronic Arts feels the pain of being a public company as their investors complain about lackluster revenue, THQ deals with closing studios to extend their runway and other firms will lose more headcount in the coming months.
It’s not all bad. But, it’s going to get ugly before it gets better.
The financial market has played tricks on everyone in our global economy and companies across all industries are going to feel a bit of a tightening around the belt. Investors are shaken and doing their best to protect their investments and cutting loose those that aren’t projecting profits in the near future. Game studios are going to slow their financial burn rates, trim a bit of the fat and hunker down the long term. The end result, next years holiday season will have a few less games because those games are being dropped to the floor now.
Mid-sized studios within larger firms may find their projects canceled or put on hold and their employees re-structured or let go while big studios assess what projects will make the long haul. This is the ugly side of the business, having to make a decision on what games stay and what games go with the grief of having to tell some of your best talent “goodbye.”
The bad part of the industry is occurring today, with publishers posting mediocre profits and trying to convince their investors to be patient and trust they’ve got a firm hold on their destiny. The game industry is not alone in this, many firms are reducing head count and many startups are finding themselves without series A or B funding; they’re closing their doors because the money is being directed to more stable ventures.
What’s the good in all of this?
(more…)
@PS3 shortage
Shortage would somehow justify high price, right? I mean if a product is rare, it’s expensive, right?
But there’s a problem. A shortage justifies a high price if there’s a strong demand for the product.
I don’t think this is the case.
So my question is, is Sony trying to create a bubble?
@C&C games free:
It could be that the kids playing the new C&C have no clue about the Tiberium ‘universe’, and these downloads are here to bring the younger gamers up to date.
@Xbox Live and MSFT phones:
I’m waiting for the MSFT dishwasher myself, lol …
@EA and used games:
Adding a locking mechanism, as Jennifer says, works if there’s a mandatory online registration in place. That works for new games.
But for older games? Those have everything on the CD/DVD.
@QOTW:
I don’t really care … to manage to do that, EA would need to enforce a tax on all used games retailers. That includes Amazon, E-Bay, Gamestop and the ocasional gamer selling his boxed game to his buddy.
It’s hard to enforce that without a lawsuit that translates into a court order (targeting resellers, maybe?). It’s even harder to check if people actually obey the order.
I smell an EA_FAIL here …
@PS3 shortage
Shortage would somehow justify high price, right? I mean if a product is rare, it’s expensive, right?
But there’s a problem. A shortage justifies a high price if there’s a strong demand for the product.
I don’t think this is the case.
So my question is, is Sony trying to create a bubble?
@C&C games free:
It could be that the kids playing the new C&C have no clue about the Tiberium ‘universe’, and these downloads are here to bring the younger gamers up to date.
@Xbox Live and MSFT phones:
I’m waiting for the MSFT dishwasher myself, lol …
@EA and used games:
Adding a locking mechanism, as Jennifer says, works if there’s a mandatory online registration in place. That works for new games.
But for older games? Those have everything on the CD/DVD.
@QOTW:
I don’t really care … to manage to do that, EA would need to enforce a tax on all used games retailers. That includes Amazon, E-Bay, Gamestop and the ocasional gamer selling his boxed game to his buddy.
It’s hard to enforce that without a lawsuit that translates into a court order (targeting resellers, maybe?). It’s even harder to check if people actually obey the order.
I smell an EA_FAIL here …
@EA
Here’s an idea how about stop spaming games & buying up companies. Just make good games & you will be sure to make munnys. So now pay me lots of munnys to be on ur board, so i can tell you that.
@EA
Here’s an idea how about stop spaming games & buying up companies. Just make good games & you will be sure to make munnys. So now pay me lots of munnys to be on ur board, so i can tell you that.
The PC I’m building should be finished next week, still have to optimize my video & processor clocks. Living in the tropics can really affect the systems temperatures so hopefully the CPU Cooler I’m trialing can help. BTW EVGA really make some sexy motherboards & the layout is awesome.
The PC I’m building should be finished next week, still have to optimize my video & processor clocks. Living in the tropics can really affect the systems temperatures so hopefully the CPU Cooler I’m trialing can help. BTW EVGA really make some sexy motherboards & the layout is awesome.
The Starcraft II closed beta is currently live.
The Starcraft II closed beta is currently live.
I neva played starcraft, is it worth looking into? When i was younger i really got into games like AOE, CIV & C&C. BTW I neva played RTS like Derrick more the Guy he described in the Episode.
I neva played starcraft, is it worth looking into? When i was younger i really got into games like AOE, CIV & C&C. BTW I neva played RTS like Derrick more the Guy he described in the Episode.
@PS3 Shortage
Maybe they’re trying to get rid of old stock before the lower the price again 😉
@PS3 Shortage
Maybe they’re trying to get rid of old stock before the lower the price again 😉
Remember when Jack Tretton claimed he’d pay for every PS3 still on the shelf at launch? He got burned, big time, for that – especially by Penny Arcade.
Remember when Jack Tretton claimed he’d pay for every PS3 still on the shelf at launch? He got burned, big time, for that – especially by Penny Arcade.
Facebook is getting overlooked again….
Facebook is getting overlooked again….