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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Great episode and nice to see quick turn around for this!
@Indi Dev: Not sure there is much to add that hasn’t already been said. I hope that the Dev can fix his situation as Paul was pointing out it did seem like he was very unprepared for managing this. I still feel that this is a sign to be cautious with Kickstarter, but not out right abandoning it. As Jonah pointed out there were worse cases.
@Fallout 4: I am looking forward to this game, also FO series wasn’t always First Person perspective, it used to be Isometric like Wasteland 2. So for some Wasteland 2 is like having a Isometric Fallout 3.
I loved the trailer, the color scheme seems so much more alive than in FO3 and FO NV. I think I prefer a voiced protagonist so I am looking forward to that as well.
@Steam returns: I can see how this can be easily abused, however I too have a lot of games on my list some I want to play and some that I don’t have any intention of playing but got through others or through Humble Bundle. Also when games start being like $2 it’s really harder to feel that need to resist.
Now here’s a Question since it’s been awhile for a QotW: Which do you prefer a Voiced protagonist (or one that talks at least via text if not voice) or a Blank slate (Chrono, Link, Mario, etc)