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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@GameStop developing console and PC game streaming
This is quite funny, since I remember Derrick and Jennifer talking about GameStop as the iconic brick-and-mortar type of shop, not willing to buckle up on the pressure put by digital distribution channels.
The big problem I see is the fact that now there are quite a lot of digital distribution channels: Steam, Origin, Desura, not to mention the console based ones. It got crowded, and getting a slice of the pie is (now) very difficult.
Now, in terms of streaming, the only competition is OnLive. They will need to do something differently, however, if they want to become top dog. I’m curious as to what will that be.
@Is the Xbox 720 chip set
Well, the technology is already there. Call it Sandy bridge or ‘fusion’, CPU+GPU+memory controller are here to stay.
The hardware technology was already tested (well, Intel had some issues with Sandy bridge …) and deemed suitable for marketing.
SoC means ‘System on a Chip’, meaning everything (CPU, RAM, ports etc) is on the same chip.
Jordan, I see the 720 as just a hardware upgrade of the 360. It will be (just like 360) still based on PC-like hardware, so I say the 360 games will be perfectly compatible with the 720. This means the 720 already has a good library.
The way I see it, Microsoft decided to steamroll the competition.
@industry is failing female gamers
I say put your money where your mouth is. Instead of complaining about the fact that the market represented by female gamers is not being properly exploited, I say take the opportunity and make a game that will bring you the moneyz 😛
My sister also loved UT. She also played Quake 3 and Medal of Honor: Allied Assault, but her arena of choice remained UT. Another game she liked a lot was the first Unreal game.
Back to the UT/Quake3/MOHAA, she also played them in multi player.
@QOTW
I take pretty much the same approach as Jordan. I don’t look at bullet points.
But, be it FPS or RTS, I want a nice, plausible story.