OP-ED: THQ and Ignition Troubles Show That Gamer Taste Threatens the Industry

This week was not kind to video game publishers. THQ announced plans for 240 lay-offs amidst the board of directors and CEO giving themselves a 50% paycut. Meanwhile, Disney bought a controlling stake in India-based UTV Ignition -- a publisher which went through its own set of lay-offs and restructuring last year -- for an undisclosed sum after the Indian government approved the deal which had reportedly been in the works since at least last summer. Disney plans to use the firm to expand their own presence in the Asian market. Neither company revealed how the changes would impact Ignition's gaming division. It's entirely possible that it will have little or no effect, but that seems unlikely given the troubles the company endured last year. THQ ran into financial trouble after relying on licensed properties and kids and family titles, specifically uDraw, whereas Ignition announced they would shift their focus to downloadable titles last year after a series of poorly performing games.

These two publishers are hardly the only ones publicly struggling. Various factors, including high-cost HD development, have led to a shakeout amongst small and medium sized publishers like Eidos, Gamecock, Midway, and others while Activision rakes in massive profits. Of course, this is normal, companies that fail to adapt die. However, THQ's and Ignitions's recent troubles stem from a disturbing trend in game consumers, not from development or publishing difficulties. It seems that players are spending more time playing games, but paradoxically spending that extra time with fewer titles. Game makers have never in the forty-year history of the medium had such a massive consumer base to sell to, but players have never been so unwilling to try new experiences.