HA3 Task 3 - Current Financial Issues

Financial Issues

There are numerous issues which make finance hard to manage when trying to finish a project in the games industry. Large companies (and often small ones) invest money into the games industry so that a project meets the deadline for the product they are producing to a professional standard.

Some issues of finance come from piracy, the act of getting content or a whole product for free without needing to pay for it. This is a very serious issue for the companies that make the game if 50% of the population who wanted the game pirated it, then the company would make half as much money and those who made the game would get payed half as much also.

Example: Call of Duty Modern Warfare 2

 An example of a business that has been affected by financial issues is when ‘Call of Duty Modern Warfare 2’ was coming up to be release. Before the game had even reached the shelves people had contact with the game and they were playing on Xbox live. This created an issue for retailers as well as ‘Infinity ward’ and their publishers ‘Activision’ as people already maintained the game, which means that they will not pay for the game as they have already played the campaign as well as the online game play, so the business will not receive any money for those games. Luckily it hit sales hard and still game the business profits, but this is very nerve racking for businesses.