This week’s news includes:
Let us know what you think.
We’re flashing back to a holographic arcade title, Time Traveler from SEGA and take a reflective walk down memory lane with Apogee and touch on ROTT. We’ve got a light set of community comments and some good game news including:
Microsoft Settles Law SuitIf you’re looking to enter the World fo Warcraft writing contest, check it out here. Thanks for the write-in’s and, as always, we look forward to hearing more. Question of the week: Would you buy a game that sold you half of other titles in content and made you pay for the rest later in DLC form?
This week we’re flashing back to Star Wars, an arcade classic from 1983. We’re looking back at the history and forward progress of ArenaNet, co-founded by some Blizzard folks. In the news, we’re looking at:
John Riccitiello, EA’s CEO says the recession is a blessingWe also learned that Don’s got some issues with not sucking at Mass Effect.
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?
