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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@Gabe Newell teases something for E3 2012 with a “3” in it:
“DOTA 2 launches on E3” ? It has a 3 in it … Or how about Portal 3? I mean people do hope for HL3 or at least HL2 – episode 3.
How about Team Fortress 3 🙂
@Microsoft includes “do not class action sue us”:
So it seems that bad practices tend to replace good practices. I mean while “do not class action sue us” will protect the company (cover it’s ass), it also allows it to be evil and get away with it.
Are they that sloppy that they feel that they need this kind of a clause? Or even worse, do they plan to do nasty stuff with your personal data?
About light bulbs: I heard that the ones built for the 220V will work just as well on 110V, but last much longer. Hint hint, if you have a trip to Europe 🙂
@Bizarre circumstances surround GSC Game World:
They sold quite a good number of the STALKER games, enough to keep the studio afloat. I think that these kind of news are just advertising, like the ARG for Valve.
I’m a big STALKER fan, by the way. Their earlier games were also pretty good (loved “Codename: Outbreak”).
As for 25 years, it’s still a small amount of time. I mean files remain classified as top secret for 50 years, unless their status is renewed for another 50.
Good segway there Paul!
@QOTW: the only handheld game system we had was one that could play snake and tetris. So big surprise, my favourite game was tetris, on a nameless handheld (’cause “17 in 1” is not a name) made in China 🙂
Just so you know, I took the time and left you an iTunes comment.
@Gabe Newell teases something for E3 2012 with a “3” in it: I look forward to seeing whatever game Valve releases next, but these kind of teasers for a teaser in kind of tiring to me. I won’t get excited until I see an actual gameplay trailer. Possible new releases other than Half-Life ending with 3: Team Fortress 3, Portal 3 and Left 4 Dead 3.
@QOTW: Sorry, I have never owned a handheld gaming system. This is because I have never found any reason to buy one (it’s better value to spend the money on a home console) and anyway I would only be able to play it at home because it takes less than an hour to get from one side of my country to the other, and there aren’t a lot of games that interest me on a handheld.