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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@Sony drops 3D support, saying customers rejected it
π really? How about their pricing, can we reject that as well? The main issue with 3D TV for for now is the lack of 3D content (ah, where’s the porn industry when you need it …). Add to that a pricey TV and you start asking yourself if it’s worth it.
My issue with 3D gaming is that in order to properly display it in 3D, you need to render the scene twice. Basically you need hardware that can do 120fps in plain 2D mode in order to have 60fps in 3D. Don’t know how many can afford buying such gear.
@Oddworld creator to EA: βFβ you very muchβ
π I love this guy! As long as he has a good game, there will be somebody willing to distribute it.
@Wii U launch developer complains of lackluster CPU:
Oh my … this is definitely not good. They just aimed for a different ergonomics/usage type and forgot about the computing power …
This reminds me of a particular phone, where the manufacturer focused mostly on user experience, completely forgetting that the device is still a phone that uses radio waves to communicate π *ahem* iPhone 4 *ahem*
@Mists of Pandaria sales below expectations according to analyst firm
Well, there’s that many times you can sell the same game again and again π
Kidding aside, Jonah does provide a very good explanation.
@Nintendo Power: it’s bound to happen, due to Internet alone; the more specialized magazine (more niche type of market) the faster the printed version will dead.
I’m with Jordan on this one. Jonah, I send links to my friends …
@favourite game of the 90’s:
Jonah, good point with Unreal Tournament, that game was (if you ask me) the bets of the series. Everything from music to weapons felt better than any of the sequels.
Now, the reason why I went for Quake 3 is (believe it or not) the bots. Play on nightmare any of the maps that has just one bot, and if the hair on the back of your neck stands up due to fear of being fragged, then you might understand. UT was fun, but could not do THAT.