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!
Thanks for this episode! I really loved, that you talked so much about older games, so I could listen more carefully because I nearly knew all the games!
But some things to mention:
Open world Elden ring: I am completely on your side Jonah: I don’t have that much time to grind 10 hours to get to next point. I want games where I knew that they will end after 10 levels or when you solved 50 puzzles or something like that. Open world games don’t have that goal for me. I totally understand that people having fun with that, but not me 🙂
Street fighter 3: I was involved in the street fighter video game scene so I knew what you tried to analyze. In my opinion on 3rd strike came up when SF4 was released. Many old players didn’t like it and tried to show their disrespect by hyping 3rd strike again.
Hard mode / easy mode / achievements:
I think it’s hard for developers to find the best way between „not to easy but hard enough to not get bored“. Sometimes I like to change the difficulty but sometimes I feel like I don’t wanna have the choice because I want to play the game how it was intended by the developers.
Achievements: sometimes I try to get them, sometimes I don’t care. It depends on the game. It’s nice because you don’t need them, they don’t change the game itself but if you really want to can play the game a different way. So I think it’s a nice thing and it’s a nice addition.
Thanks again and please stay healthy and enjoy life!
Greetings,
Ralf