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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@Super Pitfall
Erm, the youtube video didn’t look THAT bad …
@“Super-slim” PS3 will be a no-show at Gamescom
Meh … not a console user, don’t plan to buy one, not a PS3 at least.
@UbiSoft claims lack of new consoles penalizes creativity
… again with the lack of new consoles? Enough with blaming the hardware manufacturers for the bad choices developers/publishers make. The producers/developers are not being held at gunpoint to release only Call of Duty, it is their damned choice >:(.
Not talking about indies? Why not? How come their creativity isn’t penalized? Or is it that they simply take the plunge?
Rage tanked, yes. Still, kudos to id for at least trying, even if they only got themselves a new game engine.
@Diablo III ‘God mode’ exploit for Wizard discovered
I’m just going to stay away from Blizzard, until they get their act together. Always online DRM, single player game on an MMO platform, really? Really?!
@EA: Nintendo “on track to become primarily a software company”
Yep, always funny reading comments of one company rep. setting a road map for another company …
No question of the week from me.
Gez I think that Blizzard needs to get their act together. They had problems during the beta that weren’t dealt with. But maybe it’s a marketing scam? draw attention to the company just before they are set to release a new WOW expansion?
@Super-slim PS3
Never cared how slim my console is. It’s not a PC. It will run the same games at the same rate as a fat console. Regarding PS3 sitting on the shelves, that’s to be expected. Out of all the consoles currently available (at least in UK) PS3 is still the priciest. Since there is a lack of exclusives nowadays, there is not much difference between PS3 and Xbox 360. Xbox is just cheaper and has Kinect.
@Ubisoft and penalised creativity
I am sick and tired of hearing this argument. We know this console generation overstayed it’s welcome. Why does Ubisoft have to state the obvious that has been stated many times before? Do they want us to storm Microsoft headquarters and demand a new Xbox? Do they think there will be a new Xbox if they tell everyone how bad the industry is feeling? Ubisfot. Sit down. Shut up. Bake Assassin’s Creed 3.
Diablo III “God mode”
You will be surprised at how many glitches/ exploits can pop up in well tested games. Cast yourselves back to the Modern Warfare 2 Javelin glitch. It was discovered a few years after the game was played by millions of people for trillions of hours.
@Nintendo going software only
This argument splits me down the middle. EA has a point. I own a 3DS. I am regretting it. I could have spent my money on more worthwhile things. Like illegal drugs, alcohol and prostitutes. And the WiiU looks dead in the water already. So close to launch and still no price. Most announced titles are games you can play on the Xbox NOW. I hope that Nintendo will pull itself together. But they are led by Japanese old men who seem to live by bushido code and would rather kill their company then give up their franchise to business.
This is all I have this week.
@QOTW: When was the first time that you really got into video games?