Games are not just about talent
Game development isn’t just about making good leaders – or even great products. You can do everything right, even making a game of the year, and still go under.
A hard lesson Mike Morhaime, a co-founder of Blizzard Entertainment, is learning. He just had to sent a letter to staff at his new company Dreamhaven this week announcing layoffs.
One month after Dreamhaven launched Wildgate, the company had sold just 130,000 units. The company’s other game, Sunderfolk, sold just 62,000 copies since its April debut. Despite receiving positive reviews, both titles performed below expectations, Morhaime said. He’s looking for new financing for Dreamhaven, but in the meantime the company would need to retrench.
Frost Giant Studios Inc., also founded by Blizzard veterans, released Stormgate in August. Co-Founder and Chief Executive Officer Tim Morten said in a Linkedin post last week that the game wasn’t getting the traffic or sales he hoped for. Their SEC filing indicated Frost Giant Studios Inc. lost $11.7 million on sales of $1.4 million last year.
There are many purported causes. There’s been too many games released at once and not enough audience. Another factor may be even great games are not drawing players away from their heavily entrenchment in existing franchises. Whatever the cause, we’re clearly entering one of the worst markets for game studios in a decade.
