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    Issue 118 | The Hound: The Great Games Industry Buyout

    on 09.04.2006 at 19:52 User Icon Posted by James Temperton (Mr. T) Number of Comments Comments: 15 Number of Reads Reads: 3386
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    James Temperton :: Issue 118 :: 9th April 2006

    Industry analysis with added bite.

    This week has been the week of the buyout; both SEGA and Microsoft have made some fairly heft acquisitions to bolster their strength. It didn't take my mind much a-whirring to come to a pretty bleak realisation about what this could mean for the gaming industry. With the rapid growth and expansion of the gaming industry, the small guy is in great danger of being left behind, and this potential problem is being dealt with in two very different ways. As seems to be the situation more often than not nowadays, it is another case of The Industry vs. Nintendo...

    Microsoft buy out one of the PC's most respected development houses, SEGA buy out a promising San Francisco outfit and one of the UK's most established gaming companies, Sports Interactive. You can come at this situation from one of two angles from where I am sitting. Either you take it from an antiestablishment perspective; attack it for showing capitalist power once again overcoming creative expression and individuality, or you see it from a totally flipped perspective. Are SEGA and Microsoft simply putting out a helping hand for the struggling small developer and giving them the financial backing and resources to do something extraordinary?

    Microsoft Game Studios is an idea based on the back of that sort of philosophy. It takes small, fairly established companies with a lot of potential and a good name and buys them out. What you have to do is consider the output. Rare have done very little since becoming part of Microsoft's master-plan. Take a look at the happy family:

  • Bungie Studios - Halo series
  • (formerly) Digital Anvil - Freelancer, Brute Force
  • Ensemble Studios - Age of Empires series
  • FASA - Shadowrun, Crimson Skies
  • (formerly) Indie Built - Amped series, Links series, Top Spin series
  • Lionhead Studios - Black & White, Fable, The Movies
  • Rare - Perfect Dark, Kameo, Killer Instinct, Banjo series
  • subLOGIC - Flight Simulator series

    Source: Wikipedia Entry

    Bungie have produced two stunning games, but they are not outputting anything else. The same could be said for Retro at Nintendo. Both companies are (I'm speculating a bit here) contractually obliged to produce games that their parent companies want them to. Is this constrictive or constructive though? They are not able to develop their own IPs and work in a way that they see fit because they have to do what the big guys at Microsoft say. You could argue that Rare have no interest in touching the somewhat suspect looking Viva Pi
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    Page: 1
    Number of comments 129
    RedShed

     L13 Spore

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    Very nice article liked the well oiled feel and flow and also the helping hand analogy really helped me.
    on 09.04.2006 at 20:06
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    Number of comments 3884
    TAG

     L88 Super Sonic

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    Good read. It's so hard in the business world to start up something new and with you in complete control. Nowadays, the only to have complete control is to have loads of money, and that's something you don't have when you just start out.
    Hopefully with the Revolution and the LIVE arcade* that will give indie's a little more money to start moving up in the world without too much risk.

    *the arcade supports indie games, don't they? Not sure about that. They could anyways.
    TAG: That American Guy

    Prince of Persia, Duke Nukem, Fallout, Second Sight, Unreal, Earthworm Jim, and more. For $6.00 and $10.00.

    "...for the things which are seen are temporal; but the things which are not seen are eternal." - 2 Corinthians 4:18b
    on 09.04.2006 at 20:11
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    Playing through the Metal Gear Saga!
    Number of comments 2508
    White Ranger

     L75 Dedede

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    You are right the big umbrella of doom will decend and spread the T-virus everywhere hahahaha

    Well as the Industry progresses to better graphics and more techcy production costs are gunna go up, so the whole VC idea in the Revo could be the saviour that we are looking for

    As for many studios developing one game series, is that all that bad. I mean perhaps after Prime 3, Retro could try something else, but would you say that HAL should try something else other than Kirby and Smash Bros?
    on 09.04.2006 at 20:18
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    Indeed
    Number of comments 7619
    nin10do

     L100 C3 Master

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    I'll admit it, I don't like buyouts one bit, but I can see the advantages of them.


    Smashing article, the above quote sums things up for me pretty much. I do prefer to see more trust based partnerships, but sadly it's a way many don't have the time / patience for in this industry...
    Barry Lewis [ nin10do :: General Writer :: Feature Writer :: Fountain of Industry Statistics ]



    "We're mentalist psychic Scots, which means we can read your mind. If you're lying, your head explodes and we laugh."
    on 09.04.2006 at 20:21
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    Number of comments 129
    RedShed

     L13 Spore

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    Not all buy-outs are bad I've got to think - another recent SEGA buyout Creative Assembley (CA) has only helped then with more resources and a dedicated publisher- of course I could be wrong.
    on 09.04.2006 at 20:31
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    feeling Fragile.
    Number of comments 1696
    Darkflame

     L65 Tails

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    The problem with buyouts is as time goes on, the number of games independant companys reduce.

    Given long enough, extrapolateing out, there could only me one multimedia company by the end of the century.
    I find that scary, and can only hope the trend is reversed soon.
    on 09.04.2006 at 20:35
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    Number of comments 3233
    RobTheBuilder

     L82 Twinrova

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    Good one.

    I must again point out about the excellent work that Sumo have done converting and creating a full console game out of Sega's arcade IPs.
    See no Wiivil
    Hear no Wiivil
    Speak no Wiivil
    on 09.04.2006 at 20:43
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    Poopin'
    Number of comments 3289
    Slydevil

     C3 Mod

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    Yes great article. I dont like it one bit either. The difference between Microsoft and Nintendo is Nintendo gives companies the benefit of their great talent. Whereas Microsoft just throws money at them.

    This link really displays this. Its about how the development of Metroid Prime went. It really proves how great Nintendo's contribution is to its developers.

    www.escapistmagazine.com/issue/39/11

    It also shows how truly amazingly dedicated Shigsy is.
    Check it OUT!

    ( Edited on 16.07.2006 21:50 by Slydevil )

    IANC said:
    Dude yuor totally awesome. And i won't be killing you anytime soon.

    on 09.04.2006 at 20:46
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    will be right back after the break.
    Number of comments 5803
    The cheese.

     L100 C3 Master

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    How you find interesting stuff to talk about every week is beyond me, but you do it very well! Smilie

    Great stuff, agree with everything!

    This is my newer, bigger, reasonably sized signature. I hope it's not too big.
    on 09.04.2006 at 21:39
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    It's not for you.
    Number of comments 9329
    Blizzard224

     L100 C3 Master

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    I can't belive Microsoft actually bought lionhead. I'd sooner pay to get rid of them.
    on 09.04.2006 at 22:26
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    back at Uni
    Number of comments 6473
    knighty

     L100 C3 Master

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    but lionhead are awesome...anyway, good job james as always.
    Xbox Live: ZeraKnight | Maple Story: knighty33, 9x Ranger [Broa] |

    on 09.04.2006 at 22:44
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    feeling Fragile.
    Number of comments 1696
    Darkflame

     L65 Tails

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    Its odd that Jeff Mintier was working on "Unity" at Lionhead.
    Then Unity got canned and most of the code was used to make the (super cool) Visualizations for the Xbox360.

    Now Lionhead is owned by microsoft, yet Jeff Minter still works independently.
    on 10.04.2006 at 08:02
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    Number of comments 94
    TimoteiWest

     L10 Bombomb

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    Good read, I agree with most of the points in there.

    A little something I thought of though is how buyouts actually affect the studio's working environment the second they get bought, many staff "jump ship" at the mention of the term buyout! Poor Rare, they really are a shadow of their former selves. I don't know how it went for other members of development houses but I would imagine being restricted to certain titles would really crush a staff member's creative aspirations and force them to move onto smaller developers, or produce mediocre, passionless products.

    I know it would bother me if I had spent time creating an awesome idea, characters, game mechanic etc, only to have some suit tell me I had to make it appeal to a wider demographic and have another suit say "But how do we market this for today's gamer..?" etc. It would seriously force me to look elsewhere for employment.
    on 10.04.2006 at 09:29
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    feeling Fragile.
    Number of comments 1696
    Darkflame

     L65 Tails

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    Indeed.
    Only in some places (eg, UK) there is no "elsewhere".
    on 10.04.2006 at 13:30
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