Game Stooge

Silicon Knights, Thoughts on Industry Consolidation

• Scribbled on August 28th, 2008 by Derrick Schommer
• Filed in Editorial Content, Industry News

Some folks are speculating Silicon Knights is prepping themselves for a take-over; it’s not hard to see the massive amount of consolidation in the video game industry. As the industry grows it becomes harder for independent developers to get their hands on a slice of the pie. It’s also hard to see larger established studios being able to compete on the same level of a Rockstar Games or Bungie Studios with block buster titles like GTA IV and Halo 3; both titles being backed by major players.

Some might argue GTA IV isn’t really a blockbuster title at all, considering analysts predict 13-million copies of the title being sold. Consider this, Myst sold 12-million copies, The Sims has sold over 16-million copies and Popcap’s Bejeweled just hit the 25-million mark. These blockbuster titles are costing upwards of 100-million dollars to create but aren’t selling as well as some older casual titles? Is it all worth it?

For the industry, for the art and for the lifeblood of game developers around the world, making awesome game titles is well worth the price. As competition heats up, companies huddle closer together to keep their warmth like a group of sailors on a sinking ship: together you can make it.

When Silicon Knight’s president, Denis Dyack, was asked about his company and its the future in reference to being purchased by a larger publisher he went on to say, “I think I see that for everybody,” Dyack told X3F. “I think what is really important for us, more than anything else, is that we’re allowed to create great games, grown in the way we want to grow [and] maintain our culture.” (xbox360fanboy)

Is it too surprising smaller companies are now coming to expect an acquisition or buy-out when major players like EA and Take-Two are making back room deals in secrecy? One can only assume this battle will rage on for years to come.

The worse thing that can happen in this situation is for game studios to lose sight of the goal, making gamers the most innovative and creative games in the industry. It would be a sad day to see studios beginning to cater to larger publishers and setting themselves up for aquisition rather than setting themselves up for the long haul. Once you lose sight of the real goal you’re all but a shadow of things that could be.