Don't Blame the Recession, Blame the Developers

Kotaku: "News of game developers slashing thousands of jobs this week and shutting down studios, seems to dispute the notion of a recession-proof video game industry.

But video games are indeed recession proof, it's the developers and publishers who aren't.

"A recession is about the impact on sales, and layoffs are a function of profitability," said Wedbush Morgan Securities analyst Michael Pachter.

The reason Microsoft is cutting 5,000 jobs, Sony is promising across the board lay-offs, Eidos is shuttering studios and Electronic Arts just let more than a hundred people go is because they've made some bad decisions, Pachter said. Not because their games aren't selling."

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andron3556d ago

But new IPs seems to have a hard time breaking through at the best of times. So publishers and developers will probably go the more safe route for a while.

Let's hope things improve fast....

RememberThe3573556d ago

You know, something like innovative squeals that aren't trying to milk a good franchise...