Sidhe focussing more on digital downloads in 2011

Company
Sidhe

New Zealand games developer, Sidhe, will be ramping down on contract-for-hire work this year. While the studio isn't ending all contract work completely (they're still working on the multi-platform Rugby Challenge), they are instead putting a lot more focus in the digital download space as their goal for 2011.

Mario Wynards, managing director at Sidhe, realised the decline of work-for-hire and the importance of original I.P and self-publishing as far back as 2008, however, this marks as the big next step for Sidhe away from the dependence on contract work and becoming more independent.

With the completion of Blood Drive for Activision, Sidhe are not renewing further contracts and will be more selective to the partners and the kind of games they do when it comes to any future contract work.

(Mario) What we are trying to do, given where retail in general is going, is continue to move towards being independent...

That is, run the studio on the basis of royalties and download revenue alone, as opposed to being somewhat reliant on third-party publishers. We are, I guess, reacting to the market, in line with the strategy we've had in place for a number of years now, which is ultimately weaning ourselves off work for hire.

The roughly 120 employee strong studio will be focussing on Android devices, iOS devices, tablets, and digital download platforms such as Steam, PlayStation Network and Xbox Live Arcade, and will be announcing new projects within the next few months.

Submitted by Anonymous (not verified) on Wed, 12/01/11 - 1:33 AM Permalink

I can understand why Mario is restructuring his business with the success of companies like "The Voxel Agents" and "Firemint", to actually decline work from a publisher if they approach the studio is a bit of a funny one. At the end of the day its guaranteed money in the bank.

Submitted by Anonymous (not verified) on Wed, 12/01/11 - 10:53 AM Permalink

Guaranteed money in the bank sure, but at what cost? That is a question always worth asking.

Submitted by Anonymous (not verified) on Wed, 12/01/11 - 11:14 AM Permalink

It would be interesting if they are actually declining work, or they are putting a spin on a possible contract drought facing them.

I wish them luck either way.

Submitted by Mario on Wed, 12/01/11 - 9:14 PM Permalink

But we did walk away from offered projects. While in the past couple of years due to the climate we had signed up projects that we wouldn't have under different circumstances to keep the money rolling in, the longer term cost on team morale and company reputation is not worth it. We weren't prepared to enter into yet another work for hire project which had both a limited chance for success from day 1 combined with a limited upside.

Taking that approach obviously puts pressure on the self publishing side of the business to perform, and has meant some layoffs, but we are moving faster towards our goals than ever before.

Time will tell whether this is the correct approach. But I know for sure the alternative wasn't.

Submitted by Anonymous (not verified) on Sun, 16/01/11 - 1:40 PM Permalink

Strategically, you made the right choice for Sidhe. No doubt the shorter-term will have some growing pains, but we've seen the work Sidhe do, and I'm confident in that future, at least. Good luck!

Submitted by Mario on Mon, 17/01/11 - 7:50 PM Permalink

Robert gets a lot of flak around these parts. While I can't attest to what he is like to work for or how his studio was managed, I've certainly learned a lot from him over the years especially with respect to understanding the business and publishers. He was always willing to chat about things, and he helped out our studio more than once (as well as giving us our first break on faith alone).

We didn't always agree on things, having fundamental differences of opinion on digital distribution some years ago in particular and running certain aspects of our respective studios differently. But there was always mutual respect there, even during spirited debate.

Myself and Sidhe owe a lot to Robert (and Steve and John). While in recent years Krome faced issues that only those working there truly know about which have led to an unfortunate outcome for all concerned, Krome (and Robert in particular) is probably the only reason Sidhe exists today at all.

Submitted by Anonymous (not verified) on Tue, 18/01/11 - 12:07 PM Permalink

I worked at krome for a number of years and ended up jumping out because I wanted to work on projects I was passionate about. I have to say the time I worked there walshie did attempt to make it a good place to work. The working environment I had is still arguably one of the best. Also think how much business strategy it took to keep 500+ people employed for so long.

That being said krome provably should of had a stronger focus on fun game design instead of hitting each milestone exactly on time to brief.

Problem with some people on these forums is they polarise everything. There was good bad parts about krome.

Submitted by Anonymous (not verified) on Tue, 18/01/11 - 10:31 PM Permalink

well, thanks for all those Christmas Eve pizzas!

But truth be told, Walshy is a piece of work these days. Look at him. He's changed. The reality of the situation is there's nothing remotely admirable about the person he has become in the last few years, either professionally or personally.

Submitted by Anonymous (not verified) on Wed, 19/01/11 - 8:27 AM Permalink

I worked at Krome too and got let go just like everyone else.

But nobody is working for Walshy anymore and Krome is finished.

sooooo maybe its time to get over the Walshy hate eh?

Submitted by Anonymous (not verified) on Thu, 10/11/11 - 10:34 PM Permalink

and Sidhe have just let more go....

Submitted by Anonymous (not verified) on Tue, 15/11/11 - 3:23 PM Permalink

I don't know you personally, nor have I worked at Sidhe, but I've seen your helpful and insightful comments on Tsumea and have the utmost respect for any developer that takes on this strategy and all the hurdles that come with it in making it a successful future for their studio. As at the end of the day, there is very little long-term sustainability in work-for-hire for any studio.

Submitted by Mario on Wed, 16/11/11 - 9:40 AM Permalink

Layoffs are certainly a difficult and regrettable part of the process, but tough decisions need to be made in order to protect the future and work towards a model that has the ability to be both sustainable and successful. We still face a lot of challenges, but feel a lot of the decisions and actions we have made over the past few years have put us on the right path in stark contrast to other studios that haven't managed the transition.

The good news is that the NZ film, animation, and games industries are seeing significant growth, so most of those affected are walking straight into new jobs or are at least in discussion with other studios as we've been trying to facilitate placements throughout.

Submitted by Ross Symons (not verified) on Thu, 17/11/11 - 3:08 PM Permalink

Big Ant Studios are expanding both our console and simulation (defence) businesses and would be keen to speak with anyone affected by the layoffs at Sidhe for opportunities in either of our Melbourne and Kuala Lumpur Studios.

See www.bigant.com/jobs for details.

We also have ex-Sidhe staff here that you can speak with regarding the workplace and excellent working conditions.

Cheers,

Ross.