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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@THQ finally dissolved, assets auctioned off
RIP. I’m curious as to how Metro will do, I saw them as a possible lifeboat for THQ.
Jonah, I think the release date for the games in development will be delayed. Those devs rely on money from the publisher, and even the ones that did get bought, their HR/payment systems will be disrupted.
We have a similar saying, going “Each kick in the arse forces you to take a step forward”.
@League of Legends Team Solo Medbi players receive lifetime bans for anti-Semitism and abuse
Ok, it’s a start. But as I said in a previous discussion, it won’t change that person. Sure, it makes the LoL garden cleaner, but it won’t do much for the real world.
@Sony fined 250K GBP for April 2011 hacker intrusion
Well deserved fine. I’m curious how the appeal will work. I agree with Jonah, the fine is small, but Sony has to appeal, even so that it doesn’t appear to be giving up. ‘Cause if they do, they’ll find themselves drowned in lawsuits.
@QOTW
Anything that can be obtained also by grinding. If it can’t be obtained by grinding then it must be a temporary upgrade, like EA’s Battlefield Heroes renting weapons.
Now I know I keep mentioning World of Tanks, but that visit at my brother’s was quite an eye opener. The microtransactions there revolve around buying ingame credits for fuel, ammo and repair points.
Now, you can also obtain those credits by playing the game. So what my brother does is to use a medium class tank for grinding up credits – it’s cheaper to operate – then fight a few battles using the high end tank. And although this sounds tedious, he enjoys a lot even the matches that he plays with his medium class tank. So, in his case, the experience provided by playing free is very enjoyable.
That flu made Jonah sound his age. How strange.
@THQ no more
A bit sad. They published some good games. A decade of gaming history down to the archives. Hell, we lost a lot of studios since the crisis. Midway. Ensemble. 3D realms. Let’s just hope once the next gen kicks in there won’t be just EA and Valve out there.
@Gears of War 3 microtransactions
Oh I am sorry? Did I spell Dead Space wrong? Silly me. I understand when a free 2 play MMO needs microtransactions. Servers and all that. But Dead Space is a full retail game and you will have to shell out full price for it. Mooching more cash of you once you pay them is just ignite.
@Disney
Don’t care. I want Kingdom Hearts where you can play as Darth Vader and Spider-man.
@Court slightly inconveniencing Sony for gross incompetence
Man that’s bad. I hope that slap on the wrist won’t turn into a bruise. I mean, it’s all the subscribers fault anyway. If they wouldn’t subscribe for PSN there wouldn’t be any account details to steal in the first place.
@QOTW
I prefer cosmetic microtransactions. When you pay for your character to look fancy but not actually be any better than an average player. Microtransactions can ruin competitive games. I have been playing Dust 514 recently. It’s unfair when you get dominated by a kid whose daddy has a fat wallet. In the end, it puts you off playing the game.