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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@Do it like it’s 2013
It’s good to see Nintendo finally getting it’s stuff together. But I still say they missed their chance. They had a large release advantage over Xbox One and PS4 and they wasted it. They are now forever cursed to play catch up.
@All your videos are belong to us
I kick this right into the lawyer’s ball park. I remember the days of the Xbox and PS2, when I gave developers money for their game and that was the end of our interaction. But the modern game industry spawned this horrible mutation of gaming, where developers still have a considerable impact on my gaming experience post release. After Xbox 360 I got used to continuous updates. But it keeps getting worse. The gaming industry is nurturing it’s own Big Brother, which is largely controlled by non-gaming people. No good will come of this.
@Cell Games
I agree with Jonah. I was impressed with the inFamous games. But I didn’t see any differences between multiplatform titles. Cell was a poor choice for Sony; much like HD DVD was for Xbox 360. I am eager to pick up a PS4 and see what Sony’s new hardware is capable off.
@Plus one Paul!
Earlist thing I remember. How long has it been since then? I will miss Paul. He brought a very unique and interestig point of view to the gaming industry. I learned a lot about game development from him. I also realised that I never want to be a game developer. Good luck to you Paul. And get a proper job. It’s time you started puling your weight for the economy (mandatory hate mail).