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In order not to reinvent the wheel, I will quote the words of the editors of old Russian gaming magazine "Igromaniya", Alexander Kuzmenko and Andrey Alexandrov, from the May 2006 issue, which surprisingly accurately capture the essence of our article today.
Alexander Kuzmenko, preface to the issue:
Remember, friends, all those gloomy prophecies that appeared every now and then on the pages of “Igromaniya” over the past couple of years? Well, about the fact that in the future power on earth will be seized by ubercorporations, marketing and PR will become the main tools of game design, and games will come out equally good, boringly interesting and sterile hits? So, congratulations. This very future has arrived and, it seems, this time it is already final.
Andrey Alexandrov, review of TES IV: Oblivion, page 64:
It’s probably no secret that every year in the gaming industry Creators, talented people who sparkle with ideas and have long since rubbed their index fingers until they are a bloody callus, matter less and less when issuing autographs (although these guys work with no less energy what their colleagues were doing five, ten or fifteen years ago).
The world of computer entertainment is ruled by average guys who have absorbed with their mother’s milk the teachings of Kotler, Black and other luminaries of marketing and PR. Because of the neat “dress code” that blends with the walls of any office, you and I practically don’t see these citizens - but they exist. And the more power they have in their hands, the more noticeable the mistakes they make become.
List of game studios and publishers that went bankrupt in the 2000s:
- Looking Glass Studios (Thief, System Shock) - closed in 2000 due to financial difficulties.
- Interplay Entertainment (Fallout, Baldur's Gate, Carmageddon) - sold to Vivendi media holding in 2001. The company's motto was "by gamers, for gamers."
- Bullfrog Productions - studio of Peter Molyneux, who has yet to become a sellout. Closed by EA in 2001.
- Microprose Software (military simulators, Sid Meier's Civilization, Pirates and Railroad Tycoon, X-COM) - bankruptcy and closure in 2003.
- Westwood Studios (Command & Conquer, Dune) - pioneers of the real-time strategy genre. Closed in 2003.
- New World Computing (Heroes of Might and Magic) - bankruptcy in 2003.
- Square Soft (Final Fantasy) - merged with Enix in 2003.
- Origin Systems (Ultima, Wing Commander) - closed by EA in 2004.
- Gathering of Developers (Tropico, Railroad Tycoon, Stronghold) - purchased by corporate giant Take-Two Interactive in 2004.
- Ion Storm (Deus Ex) - closed in 2005.
- PopTop Software (developers of Tropico, Railroad Tycoon) - purchased by corporate giant Take-Two in 2005.
- Namco (Ridge Racer, Ace Combat, Pacman) - merged with Bandai in 2006
- FASA Studio (MechWarrior series games) - closed by Microsoft in 2007.
- Sierra On-Line (publisher of early Valve games, Cleopatra, Caesar, SWAT, and more) - closed in 2008.
- Blizzard Entertainment (Warcraft, Diablo, Starcraft) - merged with Activision in 2008.
- Tilted Mill Entertainment (Immortal Cities: Children of the Nile, Caesar IV, SimCity Societies) is a studio founded by people from Impressions Games, the authors of the Caesar and Cleopatra series. The last game (online) was released in 2009, the further fate of the company is unknown.
- Factor 5 (Star Wars: Rogue Squadron, DivX compression technology) - originally a German studio that emigrated to the USA in 1996. Closed as a result of the crisis in 2009.
- Eidos Interactive (publishers of Hitman, Tomb Raider, Deus Ex) - sold to corporate giant Square Enix in 2009 amid the crisis.
- Ensemble Studios (Age of Empires) - closed by Microsoft as a result of the crisis in 2009.
- Pyro Studios (Commandos) - released the last game in 2009. Restructured into a mobile games development company in 2012.
- Tecmo (Dead or Alive, Dynasty Warriors, Ninja Gaiden) - merged with Koei in 2010.
- JoWood Entertainment (Gothic, Neighbours from Hell) - closed in 2011.
- Bizzare Creations (Project Gotham Racing) - closed by Activision in 2011.
- Zipper Interactive (MechWarrior 3, SOCOM) - purchased by Sony in 2006, closed in 2012.
- Hudson Soft - co-developers of the PCEngine gaming console. Sold to Konami in 2012.
- EA Black Box (Need for Speed) - closed by EA in 2013.
- Criterion Games (Burnout, RenderWare engine) - no one knows what EA did with them.
And this list is far from being complete. As we can see, the 2000s claimed the lives of not just dozens of talented studios, but the fathers of the greatest game series and entire genres, who made a decisive contribution to gaming culture. Almost all of these companies were founded in the 80s and 90s - but how many independent, interesting studios were founded in the 2000s, or, God forbid, the 2010s? This cannot be called a coincidence, an exaggeration, or to say that game studios always closed - it was the “zero” years that became the turning point when the gaming industry was finally taken over by corporations, and put an end to small, creative, creatively genius studios.
So it is especially funny for me to see statements, mainly from reddit NPCs, in the likes of "2007 was the golden era for gaming" [1, 2]. A golden era for corporate greed, rather.