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Op Ed

Massively - Learning from the 38 Studios disaster.
It's said that Kingdoms of Amalur: Reckoning needed to sell three million copies for the studio to break even on its investment, but we all know that's not practical because even the best games rarely reach that number quickly enough to pay back a government loan less than three months after launch. Bethesda and Blizzard aside, selling three million copies of a game to break even is quite a risk for any studio. That's literally gambling on the livelihoods of hundreds of people working on that project. You can't take risks at that level of investment, which is exactly why small indie studios are thriving right now. People don't care as much about pretty graphics and realistic voice-overs as they did five years ago. People want to have fun. The end.

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41. Re: Op Ed May 27, 2012, 12:24 wtf_man
 
Sepharo wrote on May 26, 2012, 14:43:
xXBatmanXx wrote on May 26, 2012, 14:41:
Wasn't part of the downfall of 38 that they had way to many employees? Thought I read somewhere they had close to 400!? Seems high.

They had to create a specific amount of jobs to receive all that tax payer money.

And THAT is the problem with government "creating jobs". Let's say the average salary was 75k. Obviously there are some who made more and some who made less, but 75k for the east coast isn't a stupid high number for a professional position. With 379 employees that's 28.5 million in one year, out of the 75 million borrowed. That doesn't include overhead of office space, utilities, computers, software, etc. etc.

The mandate to employ that many people is what killed the company. The resulting game could have been easily built with probably 1/3rd that number, so there was a ton of unneeded redundancy of people.
 
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