Former Midway Games VP of business development and licensing, Lee Jacobson, has suggested that companies need to be more decisive when it comes to greenlighting and canning projects, in order to avoid the same fate as publishers such as Midway and, more recently, THQ.
"The two hardest things to do in a publishing company are to get a game greenlit, and to get a game killed," Jacobson said in an address made during the GameON: Finance conference in Toronto. "Because everybody has capitalized development expenses.
"Once you went on the hook and stuck your neck out, most publishers aren't going to expense that because they have to take the hit in the quarter they stop the project... I can't tell you how many times we kept SpyHunter 3 going when we never should have kept SpyHunter 3 going because we had $12 million capitalized on budget." [via GI International]