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10. Re: Op Ed Jan 9, 2010, 19:38 Stormsinger
Prez wrote on Jan 9, 2010, 14:48:
If you have to spend 10 million dollars to develop a proprietary graphics engine rather than spend, say, 1 million on licensing the Unreal 3 engine, that means your game has to sell that many more units to break even, and is that much more of a financial failure when it doesn't. When a company can't make ends meet because its games aren't selling enough to pay for development costs, the first thing to be cut is payroll.

So your suggestion is to cut payroll first? If you're spending 10 million to develop a graphics engine, that's -all- in payroll. I fail to see how laying people off earlier helps anything.

I also completely agree with his analysis on the stupidity of firing people and then acquiring others immediately after, while I don't understand your explanation for disagreeing with it at all.

That's because you're assuming that all people are interchangeable...but you're wrong. The skills, talents, and experience in one group of people (the folks being laid off) generally are either going to be quite different than those of the new company you're acquiring, or if they're the same, then the management has some reason to think the new group is -better- than the ones they laid off. Not to mention the IP that comes with an acquisition...that's often a fair part of the reason for the acquisition.

Basically, the impression I get from his article is of a just-out-of-college or almost-out-of-college author who has no real-world business experience, but thinks he's ever so much smarter than those who have actually done the job for real.
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