PS3 News: Analysts: Game Innovation Will Feel Impact Of Recession - PS3 News

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Analysts: Game Innovation Will Feel Impact Of Recession

Although analysts are predicting that November was a decent month for the video game industry, and many of those analysts still claim the industry is recession-proof, there may be another casualty of the ailing economy: innovation.

According to GameSpot, a DFC Intelligence panel believes that although the industry will work their way through the current crisis, "there exists potential for a significant upswing in years to come," so said David Perry. Perry, creator of the Earthworm Jim franchise and founder of GameInvestors and GameConsultants, echoed PSX Extreme's previous beliefs that gaming really is enveloped in a bubble of sorts, as more people are staying home in a recession, and thus, more people may be playing games. But DFC Intelligence's lead analyst, David Cole, added to these sentiments by saying that smaller game developers are in for some rough times. Said Cole:

"I think it makes it much harder for the smaller players to compete. Large publishers are already very conservative with new projects, and the financial situation will probably make them even less willing to take risks. This means even more of an emphasis on sequels and well-known licenses, assuming that is possible. Capital for smaller companies, unproven ideas, and startups is likely to be hard to find."

In other words, innovation may fall by the wayside while we struggle through the slow times. Senior vice president of Lazard Capital Markets, Colin Sebastian, put forth the possibility that all this tightening isn't good news for third-party investment, either, and publishers might even slow down in their push to roll out the next generation of consoles. Essentially, all this translates to publishers only wishing to hand out money to the tried-and-true; to those development houses that have proven themselves in the market. Therefore, unless you have a successful past, publishers are less likely to forward you the capital you require for your project. And if it's an original concept that may or may not appeal to the mass market, you're far less likely to get your money. In the end, Cole had this to say about the current situation:

"I agree with the basic assessment that games provide a lot of bang for the buck and thus overall spending could actually increase during a recession. However, it will clearly not benefit all companies equally. Mediocre products that are license driven tend to appeal to a less savvy consumer that is more likely to cut back on spending. Publishers that don't have a strong product portfolio could be in real trouble. I think it is likely that we could see a major publisher go belly up in the next year or so."

12/10/2008 Ben Dutka

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Comments (9 posts)

Wednesday, December 10, 2008 @ 10:45:50 PM

*blames banks*


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Wednesday, December 10, 2008 @ 11:36:32 PM

This was all the US government's fault. If they wouldn't have started letting people with low credit ratings get loans...

Wait!! This may mean that Nintendo will start losing sales, because the type of person that buys a Wii, also cuts back a lot on games during a recession! Hooray for Sony! (Just cheering my favorite game company, not fanboyism (I just don't think the Wii deserves that much attention)).

Last edited by somethingrandom on 12/10/2008 11:43:09 PM

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Wednesday, December 10, 2008 @ 11:46:46 PM

Actually, the only problem I ever found with a Sony product was my PSP's power light (you know the one that turns orange when it's charging) failed after six months (not even that big a deal, I mean it still works).

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Thursday, December 11, 2008 @ 1:10:13 AM

Nope. Its the fault of the Bankers. They new they were lending to people that couldn't afford it. They even had people pushing the bad loans on people.

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Ben Dutka PSXE [Administrator]
Thursday, December 11, 2008 @ 11:11:03 AM

Er...I have little sympathy for certain people who can't keep their house, though. The mortgage was made up so they could afford what they really COULDN'T afford, which is the fault of the bank and Realtors. They tried to tell someone who makes $50k a year that they can afford a $400k house...which is completely impossible.

The way they did this is to create a mortgage that is only like $1500/month (when in fact, this is a payment for a $200k house, not a $400k house), just to get the sub-prime person's foot in the door. Unfortunately, they didn't feel like reading the fine print, where it says that payment gets jacked to the far more appropriate $3500/month in two years. Of course, because people are SO shortsighted, they just ignored this and signed the papers anyway.

Trust me, this is EVERYONE'S fault.

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Thursday, December 11, 2008 @ 12:11:03 AM

Well that does stink for risky projects not to get a chance, but to be honest I like the tried and true approach to games. I certainly don't want things to get stale, but oft times (and this echos the whole innovation being involved in game reviews thing) an otherwise solid title gets so bogged down in trying to do something "new" that otherwise successful and loved gameplay mechanics such as turn-based battles in RPGs just plain disappear. The mixing of genres is another "innovation" I could do without. However this news doesn't bode well for us hoping to get past the FPS-as-strongest-genre trend because shooters are easier and cheaper to make plus they sell well. What this ultimately means is we may just have to expect a recession not in economic terms but in software terms. I'd hate to think this would stop the next LBP type innovation to sink, but maybe a focus on what has always worked will inject more stability into the games we do receive, and less time will be spent on wacky time wasters. As always a stagnation in gaming "innovation" is a double edged sword.

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Thursday, December 11, 2008 @ 1:11:23 AM

Yeah. I kinda figured it'd come to that. The only AAA games are gonna be best selling multi plat sequals.

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Deleted User
Friday, December 12, 2008 @ 10:43:43 AM

I just hope the best for all. These are tough times for any Business. Hopefully people can justify the price for a PS3. It needs a price cut.

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Sunday, December 14, 2008 @ 1:50:31 PM

You still wouldn't get one your an xbot.

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