In my second and final portion of my gaming in the recession series, we are going to look at what the effect of the 30% drop in video game sales is going to have on development of current games.
The first and most obvious thing that happens when revenues drop in business is that expenditures also tend to drop to compensate so you can maintain a profit. If the declining sales become the new normal, studios will begin cutting back on positions which aren't necessary to see games completed. The second option would be to cut actual projects which aren't as profitable. And the third option is to cut down the sizes of existing projects.
That third option is particularly scary for us. What if the size of development teams for sports games was cut 5-10%? How much of an impact on innovation and quality would be come to expect? Those are all questions which cannot be answered, but we do know sports game developers have an almost impossible time putting out bug free releases each year in the current environment.
So what do you think? Is there reason to worry about our favorite titles? Are you buying games like you normally did? Sound off!