Zelnick states the obvious: Games industry not recession-proof |
We kinda figured that out already when companies started sacking their employees midway this year: Midway, LucasArts, EA. But I guess those weren't exactly attributable to the economic plunge, so this statement from Zelnick should clarify the scenario even more.
At the BMO Interactive Entertainment conference, Zelnick observes that the gaming industry's standing amidst all this turmoil "doesn't look very good." Fortunately, their company has already hashed a plan to combat the attacks of a hurting economy, highlighting the fact that yes, the industry is also a mere mortal like everyone else and so must take protective measures against the evil of the plunging dollar.
No matter what people think, entertainment in general, interactive entertainment specifically, isn't immune to economic cycles... that said we can have some resistance to the cyclicality if we have really high quality products. In the last couple of weeks specifically we're beginning to see some softness in retail, it's pretty broad and it's beginning to have an impact on the industry and by that I don't mean a good impact.
But Zelnick does more than state what is already obvious. He goes on to share what they plan to do with the status quo. So what's Take-Two's plan given this less than inviting business environment?
In that context we think our strategy, which is to release a limited number of top tier titles, somewhat cushions us in the environment because must-have products should still sell... your overhead should be lower, your marketing costs should be lower...
It's very difficult to predict what the impact of this economy is going to be on the consumer, specifically in the upcoming holiday season, but it doesn't look very promising.
Let's ask Ubisoft how they do it. They seem to be fine with their money, even buying off new companies to take under their wing.
Related Articles:
- Headsd rolling: EA axes 600 employees
- Brash Entertainment to officially close down?
- Ubisoft buys effects studio behind 300, Sin City
- Ubisoft buys Massive Entertainment, takes World in Conflict brand with them
Via GamesIndustry
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Comments [refresh]
Last month for example I was planning on purchasing over $300 worth of games. But because of the poor economy I instead bought only one game I saw as a "must have" and used the rest and more to help out my parents.
sweet and practical of you. nowadays, it hurts even more to separate with cash (especially if you've got little to begin with), and so smart purchases really will have to be the practice.
fortunately, christmas is up and retail stores are already doing their end of trying to survive by slashing off prices to attract more customers -- much to our benefit.
if not, we can always wait for those games we've been eyeing to be on the discount bin.
but yeah, smart spending should always be the way to go (ideally).
even in a strong economy you should practice smart spending.....what is going on right now will not change much for the smart consumer....
The lure to pirating games is that you can try out games that you know you would not spend your money on in the first place....but you are still curious to see what they are like, but would not care much if you didn't play them....
I chose not to pirate this generation...even when I had a 360 and it was easy....I chose to only buy games that I really wanted and knew I was going to finish/get my moneys worth.....and that is what every gamer should look for.....so, maybe this is a wake up call to studios that they can not re-hash every old idea and make a game based off a best selling movie and hope it will sell for that reason.
I think it could be a good thing....$60 is not a lot of money if you are getting over 20hrs of enjoyment out of it......beats going out for dinner, or even seeing a movie in the theatre.....as far as money to time ratio is concerned....