Deep Silver boss Geoff Mulligan has said that the Koch media-owned publisher is doing much better than big, triple-A publishers because it actually makes money.
The reason is, they actually make money. It’s not a secret that most big publishers lose money. We saw it with EA and recently with Square Enix, who just lost their CEO due to that.
“People say, ‘Oh, you acquired Volition and Metro, you’re going to be a triple-A publisher. What separates us from a triple-A publisher is that I don’t really have a desire to be a triple-A publisher,” he told GameInformer.
“I actually think we’re much better than the Activisions, EAs, and Ubisofts of the world. People say, ‘What do you mean? They are valued at three billion dollars.’ I say the difference is that we make money.”
The company has picked up a lot of studios and the CEO believes that companies don’t need to be a giant organization anymore to manage all these studios.
“With the acquisition of Metro and Saints Row, it allows us to, again, go from strength to strength. But do I want to hire 500 people and build a world headquarters? That’s not what we do – nor is it what we need to do,” he said.
“I firmly believe that you do not need a giant organization anymore. That’s what’s killing so many publishers. The moment you don’t have a giant, triple-A hit, your overhead absolutely eats you alive. What do you do if this big, triple-A game didn’t hit? You’ve got to ship another one very quickly and hope that one does.”
I think this presents a good lesson to other publishers on how to effectively manage their resources.
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Via Videogamer