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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Erm, it’s a … different … intro 🙂
I guess this is due to Mass Effect?
In the hospital?! Diabetes?! Man … Jonah, I think you’re now avoiding the doctor just so that you don’t get diagnosed with God knows what.
@Microsoft: Xbox Live Arcade will be phased out eventually
Erm, dunno. I don’t think that an established digital distribution channel will be removed on a whim. You don’t back out from a market unless it generates losses, and I doubt this is the case for XBLA.
Ok, change the name, don’t care. But I think Microsoft will keep providing the service.
@Leaked images “nothing to do with” Doom 4
Doom 2 was set on Earth however. Dunno. From my point of view, anything goes.
The engine is idTech 5, that powered the Rage game.
@SimCity 5 coming in 2013:
never played, never cared.
@GAME drops 5% in shares after Mass Effect 3 no-show
Tough times for retailers. A lot of publishers either use Steam, or have developed their own digital distribution channels. So now they can afford to place heavier conditions to the retailers.
Now if you also add bad management in the mix, well, that’s a recipe for bankruptcy.
@Rumor: PlayStation 4 ditches Cell processor tech
To be honest, as long as you manage to create a nice API for the game developer, it doesn’t really matter if it’s a cell processor or 2-4 80×86 compatible cores.
I still can’t forget what they said at one point, that the cell processor was intentionally made hard to work with, so that the PS3 has a longer life.
Who thinks like that?!
Thanks Paul for sending my PD, my lil 5 yo bro will love this game (i’m 21 btw)
jordan, watch out for that C6H12O6!!! they are evil! deliciously evil!
paul, bronkitis sucks, i have it too.
jonah, go get a check up ASAP!
i hope you know that i am very glad all 3 of you are fine =]
@xbla no more eventually
it is a money maker, they will not give that away, its a name change for sure.
@sim city 5 comming 2013
meh… never liked the sims series very much (all sims, not only THE sims). i like destruction games more.
@ps4 changes processor
as long as it works with quality, I mean, as long as sony doesn’t screw up more stuff ¬¬
get well guys (be careful jonah, u might be next)
mwa hahahahaha (evil laugh if u dont get it)
take care
Can you guys make it a bit shorter? Some guys like me don’t have internet at home so we download it thru a phone. I can’t download it when its over 50M. I hope you take it to your attention, Cheers!
My god, that was the best intro ever! I’m pretty busy right now with my pre-GCSE exams, so don’t expect any long comments for now. You should be honored that you’re one of the things I will still be doing between studying.
Oh and Paul, I never got to hear your thoughts on Skyward Sword. Have you finished it, and if so, what did you think?
Hey guys, first time listener. I enjoyed the show, but I cringed at the narration of the news headlines. I’m by no means a good public reader, so I know how hard it is to vocally string together a poorly written sentence. Slow it down a little and you should be just fine.
Keep up the good work, and thanks for the listen!