Everyone knows that even in the best of economic times, people and companies can still go bankrupt. We have remarked in the past few months that there has been a rash of game development studios shutting down their doors even as the industry itself has been declared as "recession free" by many analysts. So why is this happening. Gamespot has a lengthy feature article that looks at the issue.
The article chats with members of the now closed down PC game developer Iron Lore
who created Titan Quest
and its expansion for THQ. The company had a new $20 million game they were pitching to publishers but were unable to secure a deal before they ran out of cash. The company's now former president Jeff Goodsill admitted they could have kept the lights on if they had done things differently, saying, "We should have been looking at different areas, not just for contract work, but for full products. . . " The article also looks at Wideload Games
' approach which is to have a small full time team but out-source a large amount of their work on games to freelancers. However the article claims that at the moment it's a seller's market if you are a game developer; there are still lots of studios hiring so even if you get laid off there's still plenty of jobs available.