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Smart Business Choices During Economic DownturnsSmart Business Choices During Economic Downturns

November 6, 2008| schommer| 0 Comment| 1:46 pm

Many game studios are being dropped following a bit of an economic downturn in the United States and globally. Activision has to deal with being agile enough to survive the economic times like anyone else and has dropped a few games that had great potential.

Gamers continue to ask the question, “why?” when some of their highest potential games were dropped to the floor. Ghostbusters and Brütal Legend are a couple examples of games with eager fans already salivating prior to its launch. Some of these fans are a bit ticked off that Activision named them as dropped franchise opportunities.

People ask why a company holds one “mediocre” title while getting rid of other potentially awesome ones. Don’t forget, this is a business and a good studio/publisher is going to make good business decisions without emotional attachments – those that bring emotions into play may end up with a highly valued product (to them) with no additional potential and lower revenue. This isn’t to say developers cannot be passionate about their games and their industry, they just have to build games gamers will buy and continue to fall in love with release after release.

Activision CEO Bobby Kotick is one of these business savvy individuals who knows where investors will find profits for the future, and he also know how to manage employees, with the use of software like this sample pay stub for payments and more.

“[Those games] don’t have the potential to be exploited every year on every platform with clear sequel potential and have the potential to become $100 million dollar franchises. … I think, generally, our strategy has been to focus… on the products that have those attributes and characteristics, the products that we know [that] if we release them today, we’ll be working on them 10 years from now.” (1up)

Ghostbusters is a great example of a title which could be well received and fun to play but probably wouldn’t be an exploitable franchise. The game, based on a popular movie, has limited potential for yearly releases and huge franchise success. Ghostbusters fans would probably disagree, but that’s when emotion comes into play. Think dollars and cents, not awesome fun gaming.

Oddly enough many of these business decisions from Activision, Electronic Arts and other big publishers arrive when the economy is in free fall and investors are eying your revenue potential. People make their most important and, usually, unfriendly business decisions when their company is at risk.

It’s sad to think money comes first and entertainment value comes second but we’re not the ones trying to make a profitable living in the industry. Put yourself in Kotick’s shoes as he walks into a board meeting to discuss future plans, road maps and profitability – you’d do what you have to do to keep your job, right?

Sierra’s Franchise Titles Fade Into HistorySierra’s Franchise Titles Fade Into History

August 22, 2008| schommer| 0 Comment| 9:51 am

One of the great downfalls of an acquisition or merger, in the game industry, is the loss of great franchise titles. Sierra, or Sierra Online, once stood on its own as a company with great gaming titles but later fell into the depths of Hades under many different company names.

Sierra’s last stop on the acquisition highway was Vivendi, years after much of Sierra’s steam had slowed. Now, they’re part of Activision Blizzard so we had high hopes they’d find a great use for some of the old Sierra properties long since collecting dust. Space Quest, Kings Quest, Leisure Suit Larry and especially Gabrielle Knight were some of our favorites, but times have changed.

“We are retaining only those franchises that are a strong fit with our long-term strategy including Crash Bandicoot, Ice Age and Spyro, as well as Prototype and a second game that has not yet been announced. We will not publish any other titles that previously were part of the Vivendi Games portfolio and we are currently reviewing our options regarding those titles,” says Activision Blizzard (joystiq)

This is unfortunate news, Activision Blizzard now has a large set of franchises on their hands, many of which have collected dust for years. Those dust collecting franchises could rise from the dead and reinvigorate their old fan base… or be dropped to the earth as unwanted scrapes after a big hunt with the vultures awaiting their take (sorry, too much watching of Animal Planet)

A reworked Kings Quest or Gabriel Knight could have seriously awesome potential in this time and age, imagine a dark comedy version of Gabriel Knight or a huge scaled world in King Quest using todays graphic engines. Although, these titles could also go the way Atari has gone and taken a well remembered franchise and made mud of its great name (*cough* Alone in the Dark).

Unfortunately, we’ll probably never know the distance an old franchise could go in this new world. We’ll have to pull out an old copy of our prized posessions and remember just how great they once where.