With the credit crunch seemingly dominating our headlines for most of the end of last year and no doubt for the majority of this year, it almost feels good to fall back on the ol' Israeli - Palestinian love in that happens now and again.
All jokes aside, the Global Credit crunch is hitting every single industry hard. Automobiles, tourism, retail - everywhere is feeling the hit from a problem that's going to shape the economies of many countries for years to come. But how has it affected the games industry? Well, I've been following it for a while, and the ramifications that the crunch
could have on the games industry is gigantic.
Firstly, the games industry has been hit hard. Real hard. Just as it was starting to show true potential and profit (with the rise of the behemoth know as the *shudder* Wii), companies are drastically firing left right and centre in order to maximise their potential for profit. First, it started with
rumours of Microsoft firing as many as 17,000 workers, which is an immense amount of staff. This news was quickly followed by even further shocking news regarding not just the Sony Playstation, but the Sony
Brand.
With Sony making a
still making a loss on the PS3 and their flatscreen TV's, combined with the credit crunch -
there's talk of them even closing divisions. Including gaming divisions, which would be a sad, sad loss with the talent that's available. This move could infact turn Sony into the new SEGA after the Dreamcast. The PS3 as their last platform and Sony becoming a publishing house.
Weirdly enough - despite the hard, penny pinching times -
throughout the christmas period there was a record amount of sales.Either way, it hasn't been enough. It didn't save Woolworths, or Zavvi - and it looks like game developer Midway have ran into problems
even though they've been given a lifeline, it still looks like they're going to go the way of the shitter.
The same has been happening with Video Game websites and magazines, which is just as bad. Established community (and one of my most visited gaming sites)
1up.com was bought over by the Hearst corporation - resulting in
the closing of the EGM magazine but more importantly (well.. to me anyway...)
the firing of many staff at 1up.com, that were told they would keep their jobs. These weren't just regular staff - they were staff that were renown for the community side of 1up. The podcasts, and videos. And they were just about to have a live SF4 question session while they played it :(
So, as can be seen. No industry is safe. Unfortunately the gaming industry is taking it hard, lets just hope it can recover and carry on flourishing.
All comments welcome.