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this post was submitted on 11 Sep 2024
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The point of a publisher is to have a whole company. It doesn't matter if Game A sold because Game B sold. EA used to live on this where games like Mirror's Edge could be "experimental" because The Sims and Madden made CoD money every year.
The problem is what we saw with stuff like (Let's say it is "THQ". My brain can't remember the specific publisher I was thinking of and the name has probably been reused a dozen times by Embracer et al). Where they are over-leveraging themselves by wanting to make multiple AA or even AAA games and going under because critically acclaimed games just didn't sell well enough.
But, again, that is not what has been happening for the past year or two (aside from Embracer which is a different kind of evil). It is not "Oh, you made bad games and we need to fire you to save the company". It isn't even "Profits are down all over". It is "Well, we are actually doing great. But you finished your game and don't have one immediately in the pipeline and the shareholders want to see bigger profits for Q3 so... get fucked?"
Which is why I once again cite fucking Phil Spencer talking about what a great game Hi-Fi Rush is the week Microsoft fucking canned Tango. That was not even "Look, everyone loved The Evil Within but didn't buy it so...". That was "Everyone loved Hi-Fi and it sold okay even with the Gamepass hit and our other games sold well but..."
But apparently you are in full bootstraps mode where you think like a CEO who wants to buy an extra porsche so...
I don't know how you got from A to B on the Porsche. Embracer was funded largely by debt that they were expecting to get bailed out of by an investment that didn't happen; the classic leveraged investment gone wrong. Microsoft absolutely could stomach whatever losses they face, especially since that was the whole idea a few years back when they started Game Pass, so them deciding to not follow through on that and tighten their belts now is a situation unique to them. At large, across the industry, are tons of companies making big bets like Suicide Squad or Concord or Warhaven that follow a live service template that's been tapped out of customers and don't work out, and even smaller companies following the traditional publisher model like Mimimi are so exhausted hunting for funding for their next game, just barely making it by on copies sold, that they decide instead to close up shop. That'll happen when customer dollars are spread out around more games.