Sunday, April 10, 2011

A Tightening of Belts

Image from SiliconHomeBroker.com
Most gamers – and most developers for that matter – believe that the gaming industry is making money hand over fist. And while it IS making money, if we take a look behind the jewel encrusted curtain that drapes over the industry, we find that there isn’t as much left in the budget for everything else as we might have thought.

The gaming industry is cutting costs left and right. This manifests in many ways, although most of them are invisible to the average player. For instance, many “big budget games” are actually modifications of existing games, which makes them much cheaper, faster, and easier to develop. Take for instance Call of Duty: Black Ops which owes its quick development time to what it took from Call of Duty: Modern Warfare 2. This and other games like it exemplify the new golden rule of the gaming industry: spend less, make more. Ever wonder why so many sequels and rehashes come out every year? It’s because their easier to make and their almost guaranteed to make money. 

Then on top of that, developers are paying their employees less while working them more. Almost everyone in the industry will tell you that you can expect about a month of 80 hour work weeks at the end of a development cycle, no matter what team you work with. And remember, 95% of these people are salaried, so there’s no extra pay for all this time away from families and loved ones. So while not one person in the gaming industry would give up their jobs for anything, times are still tough for them.

So, the next time you think about all of the millions of dollars and the fat cats that supposedly make these games, remember that the industry is CONTRACTING. The average industry worker makes less money there than they could in related fields - like film and TV - and they work more hours. The gaming industry is tightening its belt in these sad economic times, just like everyone else.