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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In before Herr_Alien. 🙂
Come on Paul! How many podcasts are you going to miss?
@GOG says customers hate DRM: Of course they do! Just like you said, DRM only hurts the customers and not the pirates. And yes, please bring back games filled with physical content, I would love to have stuff like that.
@QOTW: Sorry, don’t know of any DRM that I could tolerate. I know that pirates shouldn’t be accepted, but unfortunately there’s nothing that can be done about them.
@DynamicJul
😀 Actually it is a nice change. The time zone difference usually works in my favor (Eastern Europe), but it’s not completely impossible for somebody from US to get in first.
@EA forum bans cause game bans:
So apparently they didn’t fix the issue yet … they’re still using one database to handle the authentication for both systems.
If you think of it, you don’t even need two databases with the same user/password data, you only need separate databases to store forum bans from whole-account bans.
Correcting the bug should not be that difficult and it will make a huge impact for the better.
@piracy’s up 20% in past 5 years:
Games for free? Who would think this would ever be a lucrative business? 😛
I for one would pirate the shit out of Assassin’s Creed 2, just to point out that intrusive DRM is not ok. I’m not that much into that kind of game though, so …
@GOG sez customers hate DRM
And for good reason. As long as the code reaches the client, any DRM measures in it will be bypassed. Not might be bypassed, not could be bypassed, WILL be bypassed.
As for physical content, well, you still have those Deluxe editions.
@Steam user database cracked:
Not the best of the possible news. I don’t like to have the credit card info stored on servers, and in my envision of an online store, the credit card info is never stored. Yes, with every purchase you would need to type in the number again, but unless you check out very often (instead of putting more items in the basket then checking out) it should be quite ok.
@QOTW:
Steam, and the regular CD-key.
Jonah, regarding DynamicJul’s comment, I think you mean pseudo-code. And it’s not really about pseudo-code; as long as you know (1) what you want the program to do and (2) how to do it in one language, it will be easy to get the same thing from another language. The main hurdle in all software companies is not about learning a new language, is more about figuring out what the software you’re making is supposed to do.
Actually my time zone is GMT +1 so it’s the same. Also, I forgot to mention that my country doesn’t have things such as ‘Microsoft offices’ or ‘video game shops’ so I have to buy everything off the internet and it isn’t possible to fix an Xbox 360 over the internet.
Wait… taking fallout 3 apart and putting it back together again? This time it’s a brand new engine, so even if they learnt some stuff from the previous games, it’s not like they could reuse that much this time as they have done between previous games.