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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Wow Paul really let loose with that last episode. I agree with him that I’m tired of the whole Gamergate drama.
I am hesitant to get into the whole SJW issue since it’s a sensitive topic. Suffice to say that they generally are a oversensitive, zealous and fanatical crusaders looking for a fight where there is none or “Making a mountain out of a mole hill”.
A good example that doesn’t relate to Gamergate is the recent landing of a satellite on a comet by Dr. Matt Taylor. Not only did he mange the amazing task of getting the satellite to hit it’s target but we have amazing scientific data from that satellite. The next best thing to finding actual life forms, we found molecules, building blocks of life. We could be able to soon prove that life exists out in space, but what do we focus on? His fucking shirt. He’s wearing a shirt, with women (not naked) on it, made by his female friend as a birthday present, and he wore it to show his appreciation. Instead he was bullied into thinking that his shirt was a bigger grievous sin then his history making accomplishment.
So way to go SJW you’ve claimed another victory and shown why Alien life shouldn’t visit our planet.
@QotW; I’m not sure when the first digital purchase I made was. Probably going to go with the Wii and buying old NES games on it. Then Minecraft, PSn games, Xbox and Steam/GoG on computer. It started as a trickle and turned into a landslide of just getting Digital only. I love not having to worry about physical media getting damaged or lost.