GS:GTA publisher CEO Strauss Zelnick predicts one or two third-party publishers will go out of business in coming years.
I agree, with T2 more publishers/studios will crumble unless they learn to adapt with the changing industry..THQ was once one of the biggest publishers with a lot of profit until some silly mistakes...
Going to bigger and more powerful consoles which means bigger and more bloated budgets certainly won't and currently aren't helping. When a game requires at least two million sales to break even, something is definitely wrong with the current business model.
I expect many studios who can't afford the huge budget releases to make use of the digital market
Can it get worse? http://kotaku.com/5876693/e...
there are alot of big titles that have low budget costs compare to a very small number that are massive, so far GTA4 is the largest budget game at 100 million, but when the game sells over 15 million copies, it has made back the budget with 600% profit.
Betting on THQ and Square enix. THQ is pretty obvious they killed themselves with Udraw for ps3 and 360 i think there is like a whole warehouse full of em or they been dumped in the desert like ET for the 2600. Square enix because of the massive investment on FF14, which i really doubt is gonna pay out. The fact they keep making FF13 sequels that nobody in their right mind wants. Bad management and prioritizing of projects. The reason Square enix is alive is because of Eidos and Arkham Asylum.
i hope THQ they didn't do much bad things this gen aside from there recent DLC'S but square enix for the fact not giving us games we're were promise at the start of this gen and giving us crap like ff 13 and 13-2
SEGA could also be on the list due to their financial problems
Unfortunately that's probably more true than I'd like it to be. They both have some good IPs but some bad decisions and drawn out release schedules aren't helping them any. I just hope they can keep it together at least till current games release and can manage to pick up sales to stay afloat.
Square enix will not go bankrupt because they will soon just make the FF7 remake and make billions of dollars no matter how good or bad it ends up being.
Would be awesome if EA broke up all the studios they hold and died a horrible death.
Activision first please
THQ is already going out of business slowly. They used to be such a big publisher too. The sad part is that they make some fantastic games, and their financial problems aren't even due to their games. It's because of their poor management and decision making, I mean just look at the uDraw tablet, that alone crippled them. One thing is certain though: Even if they go out of business, every other publisher will be fighting over THQ's studios and IP's. So their great franchises won't die. I really wouldn't be surprised if EA bought out THQ entirely.
wouldn't be surprised if MS didn't purchase them whole sale either... they do have a pretty heavy quantity of games and UDraw could work with Windows 8 tablets working with Xbox/NextBox
@porkchop EA destroys everything it touches, any studios or development houses, IP's they come into contact with will never be the same in a very bad way.
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