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Seems like a lot of video game companies are filing for Bankruptcy...

#1levyjl1988Posted 1/21/2013 9:16:14 AM
To start up 2013 it's THQ, now Atari...

http://ca.ign.com/articles/2013/01/21/atari-files-for-bankcruptcy-in-the-us

Then I see this on N4G:
http://n4g.com/news/1158550/microsofts-xbox-brand-will-be-sold-to-someone-like-sony-failure-is-inevitable

What the hell?!

Is it because games are getting really expensive to make and companies aren't making a profit or breaking even?
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#2zerooo0Posted 1/21/2013 9:19:20 AM
People don't properly budget how they spend to make their games.

Like 38 Studios, their 2 games was poorly budgeted where they should have just scrapped the MMO, and put all that other money into Kingdom of Amalur.

That's why they go into bankruptcy.

They also don't advertise their products enough. Problem with THQ.
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#3Hash062Posted 1/21/2013 9:19:21 AM
Precisely.

This is why I think it's crazy to start a "next-gen" when companies cannot afford to develop many games for the current old one.
#4TheBlueStigPosted 1/21/2013 9:20:32 AM
It's because the companies are run by morons who over-extend themselves, hire a crapload of people, and still end up making a crappy game that doesn't sell.

They're going out of business because it's their own damn fault.
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#5XechsPosted 1/21/2013 9:41:26 AM(edited)
NIS games cost like a million or 3 to make and they get usually get 4-10 million back, what a lot of big western comapnies are doing is shelling 15-30 million plus who knows how much on advertisments and then only makes 15-20 million back then they wonder why they are going out of business.

Even something like angry birds only made like 64 million profit according to last year reports (so from release to end of 2011) and that game sold 100+ million units at the time so lots of funds/taxes/hidden costs do go to other things in that small of a game imagine giant publishers.

edit when I say release I mean that version of angry birds, still only 60% of money gets back to the company
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#6Eamon696Posted 1/21/2013 9:47:45 AM
zerooo0 posted...
People don't properly budget how they spend to make their games.

Like 38 Studios, their 2 games was poorly budgeted where they should have just scrapped the MMO, and put all that other money into Kingdom of Amalur.

That's why they go into bankruptcy.

They also don't advertise their products enough. Problem with THQ.
#7656stoogePosted 1/21/2013 9:50:54 AM
Maybe if devs would stop chasing CoD sales and churning out 6 our long disposable games with a budget they have no hope of recouping.
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#8PStrifePosted 1/21/2013 10:05:22 AM
Poor management strategies and changing consumer perception with regards to "value" is what is harming companies.

If everyone is making a short action game, why the heck do I have to buy your short product versus someone elses? Plus other perceptions about the industry trying to nickel and dime it's consumers only hurts everyone else's brands by simple association.

I am more surprised that not one American publisher has tried to differentiate themselves by putting out actual high quality product, instead they seem more caught up in the gimped product craze. Which just hurts everyone.
#9reverence27Posted 1/21/2013 10:06:15 AM
This happens almost every year around this time.
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#10spectralPosted 1/21/2013 10:47:24 AM
It's not just game developers, a lot of companies are going bankrupt full stop. We just hear about the game related ones more because that is our hobby. Money is tight for a lot of people right now and they can no longer afford to buy as many luxury items as they were a few years ago.