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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Hi Guys.
You know it: thanks as always for the episode ๐
I played a lot of Diablo 4 the last weeks, but besides this i only watched some tv series and did not play that much (not even Magic!).
Handheld discussion: i really love the Switch and my new “console” the steam deck, because i love to have the possibility to take it on a trip or to play some smaller games while in bed or on the plane or stuff like that. If i will buy a possible pS5 handheld … cant say …. at the moment there are not enough games out for ps5 which interest me … i am still playing god of war (not the new one, the remastered HDR 4k version of the ps4!).
Jagges Alliance: never played any of these … dont hit me too hard for this ๐
Hifi Rush: neither played this one … i think now i will be dismissed, right? ๐
Gamescon: you only mentioned it in one sentence, but i am looking forward if there will be some new interesting indie titles, because these are more interesting for me than most of the triple A titles. If one of you will visit the gamescon, just give me a hint, maybe we can have diner together or if you need a place to sleep.
Keep on the good work and stay healthy and happy!
Greetings from germany,
Ralf