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Publishers "Declining" By Milking Franchises

by Matthew Kato on Feb 16, 2010 at 05:30 AM

Yesterday Ubisoft announced that it wanted to offer new iterations of its franchises every 12-18 months. While gamers certainly can't complain about getting more from their favorite franchises, some industry analysts think Ubisoft and other publishers' attempts to squeeze more out of the tube could be dangerous.

"If the gaming business is all about innovation and new unimagined gaming experiences driving growth," IBIS Capital director Tim Merel told gamesindustry.biz in an interview, "churning out the 25th incarnation of most franchises won't cut it. If the majors effectively become utilities, then they run the risk of becoming like traditional media companies. Cash generative, but declining and cost driven."

Although gamers might enjoy getting a new title to their favorite franchise every year, Merel believes this is a short-term strategy that could have unfortunate consequences. "The concern is that this end of the industry goes the same way as Hollywood, with accountants and lawyers running the show and the creatives and techs being managed like execution monkeys. To state the obvious, the majors are doing exactly the right thing by investing in an acquiring big franchises. In the short-to-medium term that makes perfect sense, but in the long term I think they're going down a very risky path."