Game Industry Immunity Expires; Gamers Everywhere Brace for Shoddy Sequels

"The games industry, once thought to be recession proof, took a major hit on Wall Street yesterday with stocks from several companies slipping in value. But what does that really mean for consumers?"

TheGameReviews

[cain141]

New IP's> Normal Sequels > WW2 Games > Sports Games > Crappy Minigame Collections

Looks like we might not see as many of the first next few years. The ones aready being done should be safe, but I don't know how many new ones they will start...

[cyguration]

as if we don't get enough mini-game compilations already? Heh.

[cain141]

Really good podcast here about the wii where one of the guests postulates that those minigame collections will be the first to stop selling in the current state of the economy...

http://shoinan.com/2009/02/...

[Viewtiful]

IT's tough because this really becomes cyclical. They make crappy sequels, and then the franchise piddles out and doesn't sell as well anymore. Then they have nothing left because they weren't broadening their portfolio looking for their next big franchise.

[cain141]

That's a very good point to make as well...

[stewie32887]

Sigh. Yet another thing to interfere with my gaming...

[VirtualKatz]

Ah crappy games, what more can we ask for lol.

[SpoonyRedMage]

Why the hell did Sony drop? Haven't they been doing amazingly?

[cyguration]

Sony is only doing amazing in the eyes of delusional fanboys. Read some REAL news and the picture is completely different. Sony's stocks haven't been doing well since late last year.

[SirLarr]

That's the problem, it's just people losing confidence and dumping stock for no real reason.

[SpoonyRedMage]

Well I know they're facing trouble like everyone else but I thought with their recent success in Japan I thought they'd be safe for now.

And I'm definately not a Sony fanboy, 360 owner and proud.

[Mahr]

"Well I know they're facing trouble like everyone else but I thought with their recent success in Japan I thought they'd be safe for now."

Well, two things could probably explain the stock drop here: The first being that Japan, while being one of the major parts of the game market, is inconsequential in regards to the world market. Unless sustained for a significiant amount of time, dominance in a single region doesn't really amount to much financially. This was true even historically when Japan had a much greater share of the market demographic.

The second being that even as recently as three months ago, it was known for certain that Sony was still eating a loss on every PS3 sold. I kind of doubt that in that time, component prices have fallen that drastically so as to make the financial ecology on per system profit tick over nicely, so a 130% increase in the hardware sales isn't particularly useful in the short-run unless software units are moving fast enough to recoup the losses. If they're not...well, it's not really something that inspires much confidence.

[BetaChris]

Maybe I'm wrong, but wouldn't the current economic climate warrant more risks from a game development standpoint, as opposed to less?

I'll explain: most game developers are well aware that a "safe" game isn't necessarily a profitable one. Sure, there can be 10 different Namco/Sega/insert game company of your choice here mini game collections, and they will all sell. But I can all but guarantee, they will not outsell a new IP, nor a *proper* sequel.

The temptation to release shoddy product and half-hearted sequels will always exist, regardless of the economy.

Yes, game studios are no more recession proof than any other industry, but I doubt that any company with a track record of releasing quality titles will risk their reputation (and subsequent profit share) will start intentionally taking fewer risks. My guess, and this is strictly a guess, is that they will consolidate resources, and unfortunately cut staff as necessary.

From a creative standpoint, now would be the time to take risks - not in spite of the economy, but because of it. Game Devs should be pulling out all the stops, in an attempt to get the public to keep buying. After all, especially for smaller developers, every new game could very well end up being their last...

[SlamVanderhuge]

problem is that the stuff that works eventually gets stale...which leads companies to try something new.

the circle of life never ends

[predator]

seems all consoles will be getting crapy games just like the wii

[ChickeyCantor]

Yeah lets pretend Wii invented the thing that is called a shovelware game.