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?
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@World of Warcraft: Mists of Pandaria announced
Well, they keep doing expansions, but something tells me people got tired of it.
As for raising the level cap, it is the only way you can keep the players that don’t want to grind up again.
@Deep Silver: “There is a clear technology gap“
Wow … they discovered that a 4GB system RAM, 1GB video RAM PC is better than a 256 MB system 256 MB video PS3 …
As Jordan said, the main issue is that developing 3 code bases is expensive. The advantage of the XBox is using PC-like components, and using a PC-like software platform.
@Starcraft II DOTA mod will remain free but monetized
What are the terms in the EULA? Does Starcraft II allows this?
If so, then it is the second game that I know of that does this (TF2 being the first), and I like the trend it sets.
@Minecraft dev wins interim injunction over Scrolls name
Good for them. If they kept a record of the offer to give up the trade mark, then this will weigh in quite a lot in the court: it’ll point out that Bethesda is not up to protecting the name.
@QOTW: none, unfortunately.
No Paul again. =(
Anyway,
@Minecraft dev wins interim injunction over Scrolls name:
Finally, I was sick and tired of hearing about this nonsense, and I am grateful that Bethesda hasn’t gained anything from his.
@QOTW: Just to show how much out of my time that is, my parents had an Atari 2600 back when they were still children.
ahhhh i really miss derrick and jennifer i wish they could host ,btw any news on their son???
@ minecraft dev wins interium injunction over scrolls name ,Hooray good for mojang im so sick of bethesda being so freaking sensitive
@qotw dude im 13 years old the atari is a dinosaur
Paul is gone again a mixture of sadness and happiness but mostly happines ,jk