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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@Nintendo announces XL version of Nintendo 3DS: No surprises there. It’s kind of a given that they make new versions of their handhelds after it has been proven very profitable for them.
@New users must now pass “review process” to unlock full Diablo III: All this makes me wonder is, how much higher would the number of sales be if there hadn’t been all this stupid DRM on the game? Don’t know why they feel the need to punish their customers. It seems that only Valve knows that the way to being a loved company is by being loyal to its customers.
@Valve and Cartoon Network collaboration hints at Team Fortress 2 show: After I’ve seen what can be done with the “Meet” shorts, I can say that I’m interested to see what they come up with.
@QOTW: Nope, not really. Apart from making sure I have proper lighting and heating/cooling, I don’t do anything special.
Jonah, no rush on Mission Impossible. I can come up with other weird NES games 🙂
@Nintendo announces XL version of Nintendo 3DS
I’m curious if this has to do with the pixel size as well. When the console was announced (display size and resolution) I crunched some numbers to find out the view distance to fully use that resolution. It came up as about 8 inches. That’s too close.
A bigger screen would also mean a bigger view distance.
@Dev claims Microsoft killed XBLA version of Stranger’s Wrath
This is so odd. What’s it to MSFT if the game gets distributed or not on XBLA? Normally a publisher would not care that much as long as some quality standards are met.
I mean it’s not like they’re worried about shelf space, we’re talking about a digital distribution channel.
@New users must now pass “review process” to unlock full Diablo III
*clears throat* Ahem!
Bwa ha ha ha ha 😀 😀 😀
And I thought that online DRM was the worst thing that could happen to a single player game. Boy, was I wrong!
And if this doesn’t ramp up piracy, then I don’t know what will.
@Valve and Cartoon Network collaboration hints at Team Fortress 2 show
Dunno … they’ll have to move outside of the game in order to make it happen.
We’ll see.
@steel battalion poor reviews:
well to be fair the problem doesn’t seem to be its complexity its that as per usual with kinect it just doesn’t interpret your commands correctly 75% of the time.
and hey ubisoft press conference had more than watchdogs ….rayman legends looks amazing. =p
What is this place? Why am I writing this? Who are you people? Must…save…Skyrim. VAMPIRES ARE EVERYWHERE!!! THE DAWNGUA OK I am back in the real world now.
@3DS XL
Enjoy not having any games to play in greater resolution. Good point made by Paul: it’s not the size that matter’s. It’s the way you use it.I bought a DSi because it was a massive improvement over the original DS in terms of hardware and software. 3DS XL is just a bigger brick with bigger screens. A premium brick is still a brick.
@Oddworld: Strangers Wraith
I loved the game. It was a very interesting twist on a first person shooter. An adventure FPS with an interesting story and fun gameplay. As far as I remember, EA killed it by not advertising it. When it came out there was not a single mention of the game in media. And you had FIFA 2006 adverts posted on every bus, wall and toilet roll in London. Thanks a lot, EA.
@Diablo 3:
Que Blizzard: “No you can’t play the game offline. No, you can’t play it online either. Just give us your money, sit down and shutup. We made the game. We decide who deserves to play it and you clearly don’t unless we perform a full criminal record check and ensure that your credit card is American Express Mega Gold Platinum X”
To follow up a point made last week, just out of quriosity, if you have an opportunity to customize your game(i.e. create a character or change his name) do you personalize them and give them your name (or nickname) and your likeness? Or do you leave default settings? I tend to try and represent myself as much as I can in an MMO or Skyrim, but usually leave default settings in games where they are definitive of the series. All of my Zelda characters are called Link and my main Mass Effect character is the front cover Shepherd as he is on every media advert on the planet.