Split Streams

9 12 2008

http://flickr.com/photos/t_lawrie/320871693/

The Guardian have a perky report about how well the games industry is doing in the UK, which has some good observations, such as the timing of this recession being as good as it could be, falling in the middle of a console cycle when sales and resource allocations are optimal. Another is that publishers are more likely to put money into established IP than risky new projects, something that’s already the case mid to late cycle, given that new IP is a lot easier to launch with a new console.

However, the Guardian piece is still only telling half the story. “Recession proof” is a term that has been thrown around a lot in relation to games recently, and given the massive spate of studio layoffs, sales and closures that has blighted the end of 2008, it’s just not true. Of course it affects games businesses, just like others.

NESTA have produced a new report on the state of the UK games industry, and despite an improvement in the dollar rate it’s really struggling against a few factors. While work for hire is getting easier and more common, the amount of IP UK developers can generate seems to be decreasing. Meanwhile, the vast revenues being generated by unprecedented retail sales only go a limited way towards developers, passing as they do through the filter of publishers.

Edit: Even today, bad publishing news.

(CC image by TCL 1961)

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