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Article: The Show Goes On

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  • Article: The Show Goes On

    Activision's dramatic slashing of non-performing IP makes some business sense - but the long-term impact looks grim.

    Published as part of our sister-site GamesIndustry.biz's widely-read weekly newsletter, the GamesIndustry.biz Editorial, is a weekly dissection of an issue weighing on the minds of the people at the top of the games business. It appears on Eurogamer after it goes out to GI.biz newsletter subscribers.

    When an event is described as sending "shockwaves" through the industry, it's commonly a piece of hyperbole - but it's truly no exaggeration to suggest that Activision's extraordinarily aggressive pruning of its product line-up has done precisely that this week. The discontinuation of the Guitar Hero and True Crime franchises is a remarkable step, while the UK development market - still reeling from Activision's decision to close Bizarre Creations last month - would feel the downsizing of DJ Hero developer FreeStyleGames particularly acutely.

    All of this is taking place against a backdrop of what looks like a wholescale retreat from risk on Activision's part. The company and its outspoken CEO, Robert Kotick, have made many bombastic pronouncements in the past about only being interested in the biggest-selling, most profitable games. This substantial retrenchment of the entire business is a dramatic placing of Activision's money where its mouth used to be.

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