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 Send to email | Game Industry Booming, Game Companies Failing. Why? in General |  By Silicon
el 07-Apr-2008 |
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 The video game industry has done fairly well in light of the economic slowdown -- February game sales (both hardware and software) were up 34% y/y. But that hasn't stopped game studios from dropping like flies: four have have either suspended operations or just closed this year, and its only April.
The most recent: Castaway Entertainment, which made the free Toyota Yaris advergame for Xbox Live last year.
So why is this happening? No matter how well the business is going, small studios live from project to project and losing one or two is enough to cause them to capsize.
Castaway lost the two projects it was developing. The other three studios, Perpetual Entertainment (developing Star Trek MMORPG), Iron Lore Entertainment (credited with co-developing Soulstorm for THQ), and Stormfront Studios (developed The Spiderwich Chronicles game), also lost of one or two projects and ended up shutting down.
The downturn doesn't mean big companies will stop making games, but they may decide to focus on proven winners from the bigger studios, leaving smaller game makers in the lurch. Any thoughts? Share them in comments.
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 | Kotaku`s The Gamers Guide |  Blogger | XBOX 360 Gamers Weblog
Gossip, news and leaks for obsessive gamers Kotaku As if you don't waste enough of your time in a gamer's haze, here's Kotaku: a gamer's guide that goes beyond the press release. Gossip, cheats, criticism, design, nostalgia, pred |
| Texas Governor Perry Encourages Game Biz [E308] | | Texas Governor Rick Perry believes in the game industry. It's in our nature, he said, to be driven and competitive, and that's why he wants more companies within the industry to put down roots in Texas. Speaking to an audience of industry professionals and press at the 2008 E3 Media and Business [..] Read complete article | | Published 16-Jul-2008 by Leigh Alexander in E308 Governor Perry Industry Original Texas
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| Kotaku`s The Gamers Guide | Blogger | XBOX 360 Gamers Weblog
Gossip, news and leaks for obsessive gamers Kotaku As if you don't waste enough of your time in a gamer's haze, here's Kotaku: a gamer's guide that goes beyond the press release. Gossip, cheats, criticism, design, nostalgia, pred |
| Kotaku`s The Gamers Guide | Blogger | XBOX 360 Gamers Weblog
Gossip, news and leaks for obsessive gamers Kotaku As if you don't waste enough of your time in a gamer's haze, here's Kotaku: a gamer's guide that goes beyond the press release. Gossip, cheats, criticism, design, nostalgia, pred |
 Atari Combats Resale WIth Expandable Experiences [Buy, Sell, Trade] | | With game companies all over the world depressed about the impact used game resales have on the industry, Atari offers up a simple solution - make games people don't want to let go of. This elegant solution to the used game market comes courtesy of Atari's President Phil Harrison, [..] Read complete article | | Published 03-Dec-2008 by Mike Fahey in Buy, Sell, Trade Atari game 3.0 News Phil Harrison Resale Used Games
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| Kotaku`s The Gamers Guide | Blogger | XBOX 360 Gamers Weblog
Gossip, news and leaks for obsessive gamers Kotaku As if you don't waste enough of your time in a gamer's haze, here's Kotaku: a gamer's guide that goes beyond the press release. Gossip, cheats, criticism, design, nostalgia, pred |
| Joystiq | Blogger | Covers video game news from an independent, unbiased perspective
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| New game industry facts, straight from the ESA |  Filed under: Culture, Business
Today's "State of the Industry" E3 keynote by ESA CEO Mike Gallagher also marked the release of the organization's new annual set of "Essential Facts" about the game industry. Among the interesting finding [..] Read complete article | | Published 17-Jul-2008 by Kyle Orland in e3-2008entertainment software associationEntertainmentSoftwareAssociationESAstatisticsstats
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| Joystiq | Blogger | Covers video game news from an independent, unbiased perspective
Joystiq Joystiq |
| NYC game development community slowly growing |  Filed under: Business
The Center for an Urban Future, a Manhattan-based think tank, has a report on New York's growing games industry. GameDaily reports that Take-Two and Atari, along with 30 game development companies and some 5 [..] Read complete article | | Published 13-May-2008 by Alexander Sliwinski in developmentgame-developmentnew-york
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| Kotaku`s The Gamers Guide | Blogger | XBOX 360 Gamers Weblog
Gossip, news and leaks for obsessive gamers Kotaku As if you don't waste enough of your time in a gamer's haze, here's Kotaku: a gamer's guide that goes beyond the press release. Gossip, cheats, criticism, design, nostalgia, pred |
| NYC Eyeballs Growing Games Industry [NYC Game Mecca?] | | New York City's Center For an Urban Future released an in-depth report on the state of the city's game industry, with the aim of encouraging city government to become more involved. Given the overall health of the industry, NYC joins a number of cities around the [..] Read complete article | | Published 16-May-2008 by Leigh Alexander in Game DevelopmentIndustryNew YorkNYC Game Mecca?
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| Kotaku`s The Gamers Guide | Blogger | XBOX 360 Gamers Weblog
Gossip, news and leaks for obsessive gamers Kotaku As if you don't waste enough of your time in a gamer's haze, here's Kotaku: a gamer's guide that goes beyond the press release. Gossip, cheats, criticism, design, nostalgia, pred |
| Sony And Nintendo Expand In Asia [Asia] | | Sony and Nintendo (separately, of course) are the latest to look outside Japan toward the primarily PC-based online game market in Asia, each with several new business initiatives, reports the Nikkei. Many companies in the game industry are prioritizing mainland Asian expansions as a way to gro [..] Read complete article | | Published 07-Jul-2008 by Leigh Alexander in Asia Ds Industry Nintendo Sony South Korea Taiwan
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| Kotaku`s The Gamers Guide | Blogger | XBOX 360 Gamers Weblog
Gossip, news and leaks for obsessive gamers Kotaku As if you don't waste enough of your time in a gamer's haze, here's Kotaku: a gamer's guide that goes beyond the press release. Gossip, cheats, criticism, design, nostalgia, pred |
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