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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Yeah, they did it as a Fathom event in Portland and I went… good stuff. Nice seeing what Fable and Avowed might look like when they come out.
The Internet is already talking about “No Man’s Skyrim”. I’m cautiously optimistic. It seems VERY ambitious. Between ship building, habitat building, space travel, trading, combat, a room full of sandwiches, it’s a lot…
Hi guys.
Thanks for this huge episode! Sadly i know nearly none of the games π
I heared about SF6, but you skipped it π
You mentioned one Metroidvania game coming, which should look very good, but i did not get the name. It was very early in the episode … could you please tell me the name? I love Metroidvania games π
I am playing the hell out of Diablo 4 … and the words i choose were not intended to describe it π
And as always some Magic the Gathering. Nesides thsi the ummer is coming and so are the concerts and festivals i enjoy in staed of sitting at my pc or console … i need people around me at the moment -.-
Thanks for your effort and i promise i try to listen to the podcast more often and comment it … as i did the last years <3
Greetings from germany
Ralf