Speaking with Game File (users will encounter a paywall) at the Game Developers Choice Awards, Larian director of publishing Michael Douse gave his take on the current state of the industry, including some sharp criticism on the wave after wave of mass layoffs we’ve been seeing.
“They are an avoidable fuck-up,” Douse said. “That’s all they really are. That’s why you see one after the other. Because companies are going: ‘Well, finally. Now we can, too. We’ve wanted to do it for ages. Everyone else is. So why don’t we?’ That’s really kind of sick.”
In my opinion game studios should not sell out to investors and/or have publicly traded stocks as it will lead to profit making the calls eventually. It is tempting to get a bunch of investment, I know it would make my game studio easier to run right now, but then you are constantly reminded how it all ends up. Don’t like the system, stop playing in it and build your company slowly and organically instead and retain full control.
Same goes for many businesses outside of gaming. Imagine if there was no such thing as the stock market / investors and all companies had to grow on their own merits.
The issue comes in when these smaller studios become successful. Let’s say you started your own studio with 10 other people. You own 50% of the stock, the rest of them own the remaining 50% all split evenly. You make Turbo Assault, and it’s wildly successful. Microsoft has taken note.
They offer to buy your share of the company for 100m. What are you going to do? If you don’t take it, your buddies will sell for a 10m windfall each. Or they offer to buy it all. You not going to sell? Of course you are.
That is true and is the primary reason I have no stocks and am not even incorporated. I am a sole proprietorship and everyone I work with I pay for their talent as needed and they are their own sole proprietorship doing their own thing and get paid fairly for their work. Yes this means I cannot get to market fast, and I am ok with that. Everyone is compensated whether or not my project is successful and I retain full control if it is.