New IP: Recession Proof?


Many analysts have claimed that EA’s new IP, particularly Dead Space and Mirror’s Edge, were a risk too far in 2008 and led to their recent disappointing financial postings. In spite of massive restructuring going on and presumably tighter margins for 2009 EA have stated that they will not give up on new IP. They are still prepared to take risks and make those departures from their tried and tested “incremental sports” franchises such as FIFA and Madden.

Whilst this has the potential to be fantastic news for gamers (Dead Space is the best survival horror game ever and it looks set to remain so for a while yet and Mirror’s Edge really should be owned by everyone who likes games) it may also have detrimental effects on EA’s business. If they take one risk too many it could put them at serious financial risk. Analysts still claim that they simply will not be able to commit to as much new IP as last year.

So, it’s a gamble. I for one am happy that there are still some publishers prepared to take it.

Edit: Sorry everyone, I should have been clearer – IP stands for Intellectual Property and is used to refer to any idea that a publisher or developer owns the rights to.