phisheep on 16 December 2008
Massive revenue maybe, but they are offset by even more massive costs. With the increases in development costs, any development is higher risk, and even small percentage variations against expected revenue can have a killing effect of the business model.
This is not altogether a bad thing though. Trouble is, some of the larger developers at least are stuck in the past when it comes to business plans, and like any big set-up it can take them an age to change their minds.
On the other hand, the staff being laid off - and I'm sure there are many talented people among them - now have the opportunity to go their own way. There should be some new, vibrant and profitable studios coming out of this ...
