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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Thank you for mentioning me!
I referenced the part from episode 423 regarding Jesse Eisenberg in American Ultra where he’s paranoid/anxious until he gets his weed and how stoners can get paranoid after they’re high and think cops are coming.
My user name was supposed to have a cool “A” as 4, so it would read as “Lad”; I was using this user name before Left 4 Dead was publicly announced, and my Steam account is ]_4]), but I don’t like to tell people this for fear of hacking…
Regrading politics, I’ve seen your support for Hillary, so I do not want to discuss politics, but my main issue against Hillary is that she might be part of the New World Order; I hope she is not a member, since she will most likely be the next president…
I neglected to state my Steam account creation date, which is 4/14/2004. I have a similarly named Gmail account with L4d in it, which was created around that time, too.
Is there a way to edit these comments?