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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Going for the sex sells eh? Not that anyone would know the difference either way.
“Companies spend money like fish” Doesn’t sound like any company I’ve been at. I have at two work places that had several computers still on XP, they take a long time to upgrade anything. I’ve seen old plotters still be used from decades ago. I think companies tend to the if it ain’t broke don’t fix it.
Paul if you have a spare Windows 7 computer why don’t you see if Grim Fandango works on it? Or have you already tried?
@Windows 10: Yeah it feels like a real desperate attempt at good will for the Windows OS in general. I think giving it away free for a year they feel will garner some slack. Though if you upgrade I don’t know if you can go back to Windows 7 or 8.
@Kojima: I think Metal Gear is becoming one of those games that need to be retired now.
@Tempest Debacle: Looking at the screen shots I feel like I have seen this game mechanic before in other games. Having never played these two I can see it’s a ship that spins around a “pit” shooting at things in the center. I feel that that was a very old Atari game at some point. However he’ll probably have to pay a settlement for this as it does look like he is trying to remake the game that belongs to Atari now. There’s making a game that uses certain mechanics and then there’s just making what looks to be a clone of what they did previously. If I made a game where you jump up and down a large block pyramid with a little orange dude named Q’bort I’m sure Atari would see through that as well.
@Xbox for sale: If it’s for sale maybe a former console company could buy it to bring its self back like Sega or Atari. Though I don’t know if anyone would want to buy it. With the way they’ve been talking about integrating Xbox and Windows gaming I don’t think they would sell that then.
@Nintendo’s NX Gen: I’m intrigued what they will do, if nothing else we’ll have a new name to have fun with the NX Gen.
Since there was no QotW, I thought I’d ask something: “What do you think is the future of Old Games?” To give more context anyone who wants to read an old book, see an old movie or listen to an old song can easily do so. However with Games that will become difficult, especially in cases of games that are Online only and once servers are gone so too is the game. Later generations of people may have a hard time playing games that are no longer workable on current gen consoles or even computers. I wanted to know what your guys thoughts are on this.