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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@Street Fighter X Tekken DLC will never come to Xbox 360
I get Dan’s point, placing the DLC on the disk is like dangling a carrot in front. And yes, since the DLC is already distributed, then why not get some money out of it?
@Vivendi finding few buyers for Activision-Blizzard
Thing is, the game industry is quite tough. Spending N billions to buy a piece of it is quite a risky bet. Miss-manage it and you’re never going to recover the investment. So I can understand why nobody is rushing to buy.
As from the potential buyers point of view, Vivendi desperately needs money. Play your cards right and you can get Activision-Blizzard at a nice discount đ
@âWouldnât be surprisedâ if more aggressive PC games start to appear
Hitting a Diablo 3 home run: good luck. It’s hard to do for any platform, not just the PC.
Erm, no cycle detected on my end, always KB and mouse here.
@Grand Theft Auto V will support planes and jets, wonât have beta test
Not a fan. Loved Mafia though.
@ Question of the Week.
I was going to say ‘No’ initially, but I saw the hardware specs, so it’s a ‘maybe yes’ now. Android is hackable, it has a USB port so ….
Gearbox: âWouldnât be surprisedâ if more aggressive PC games start to appear: For the record, I got excited as soon as I heard you say that Borderlands 2 would have drag-and-drop inventory, because Borderlands’ huge number of items and weapons makes it a pain to navigate through the inventory with the consolish setup it had. Other than that, all I got that Gearbox was placing a huge bet on the PC, and telling everyone how great it will be to be a PC gamer.
@OUYA: Good for them for tons of funds, but this can also be the point where a Kickstarter goes horribly wrong. Seriously, from what I understand they pretty much said “we’re going to try these bunch of different ideas together and see if they stick”. Let’s hope they’re successful and manage to create a great platform.
@QOTW: Probably not. I barely play Android games, and I doubt any huge games will be on the system before anyone knows how successful it will be.
And yes, Gearbox are looking for headlines: http://www.ign.com/articles/2012/07/24/randy-pitchford-plagiarism-is-rife-in-the-industry