The Escapist staff resign following termination of editor-in-chief Nick Calandra
gamesindustry.biz
gamesindustry.biz
Another sign of how much of a moneymaker ZP is for The Escapist is how in the last few years it’s rebranded to use the distinctive “limbless white figure” art style, an invention of ZP, throughout Escapist’s other blogs and podcasts.
Ticking off Yahtzee by firing Nick has taken out what’s almost certainly The Escapist’s biggest source of revenue.
I'll have to follow Yahtzee and Frost wherever they go.
>@everyone I'm very excited to announce that name of our new adventure, Second Wind.
The ENTIRE Escapist video team is coming with.
<@233002118808600577> and I will be live on the channel tomorrow at 11 AM CT to discuss our plans, talk about what happened, where to support and when our first videos will drop.
All the links you need:
https://twitter.com/SecondWindGroup https://www.twitch.tv/secondwindgroup https://www.youtube.com/@SecondWindGroup
Is making money ‘blatant’?
Among other things, they advertised direct moneymakers like paid subscriptions.
> Is making money ‘blatant’?
There’s making money and then there’s making money. As a somewhat regular browser of Escapist content for over a decade, my characterization of Nick’s tenure would be that its non‐ZP output stood out for being rather thoughtful games industry commentary, as opposed to chasing clickbait and other industry trends. By Nick’s account, this was enough for them to see successful, healthy growth—it just wasn’t enough growth to please the higher‐ups.
Now consider the “blatant” sponsored advertisements, which I neglected to mention were for such products as gacha games and crypto miners. Tonally inconsistent with the surrounding aesthetic; unpopular with the talent, as visible in Yahtzee’s obvious disdain. Worrying indicators of executive meddling that seem to have been confirmed by this week’s events.
So yes, decisions in the name of “making money” can be blatant, if by chasing it you lose all that distinguishes you from the bland, reader‐hostile content mill that is the rest of the gaming news industry.
You would like to decide that a few non-intrusive ads and subscriptions earn enough money for them but hey, it’s not your decision to make. It’s their decision to make and it’s yours to take it or leave it.
If you don’t like it, start your own publication, pour in the money and build the talent. And then we’ll talk about how far you come without these ads.
Simply complaining about how everything should be free, ad free, tracking free and up to your quality standards is pointless. Some great things in life are free but a lot of them simply are not. Chances are you don’t work for free either.
In this case, it’s not freeloading (l)users who left The Escapist in response to its new direction, but its own employees. And their immediate next action was to start their own publication with their own talent, but without the higher‐ups. That suggests that they believe their approach of producing quality content was financially sustainable. Time will tell if that’s true.
Wrong, you've failed to read the post you replied to. They paid the bills and even had steady growth. Corporate got greedy and wanted MORE growth which was unrealistic.
What’s not obvious is if they pay the bills. Chances are that like in most forms of media they don’t. Just like newspapers still have ads because subscriptions don’t pay the bills.
But hey, you’re free to try to set up your own channel completely funded by subscriptions! Good luck! Perhaps the talent that left this channel will even join your channel. If those subscriptions bring in enough money to pay them of course.
Unless The Escapist was really losing money or about to go bankrupt, I don't know why it needed to be messed with. It's not a "growth" project, it's a journalistic outlet. Who cares if it "grows"?
Find something sentimental to someone, and smash it while they watch. People can't coordinate resistance against you when they're emotional. Hurt them deep enough and they give up. Then you can replace them with sycophants.
If you stop pursuing some amount of continuous growth or price increase, you stop making money.
Silicon Valley, VC culture, American industry in general, has all jaded my view of "business" people.
Investors who want to make money and do not particularly care how.
In the long run the only way to run a business is to increase growth or increase cost to consumers. Since the escapist mostly ran off ad revenue (although they did have subscriptions that im guessing helps) unless they increased viewership they likely they weren't hitting the metrics they wanted.
by no means does this means let go of the guy leading the team who is your likely biggest draw -- thats just stupid
Lets imagine an entire economic system that was steady state. Why would profitability have to increase?
Instead we have a system that profit must increase, and profit must increase in every component of the system constantly due to inflationary practices.
https://www.npr.org/2023/05/19/1177180972/economists-are-rec...
>He found that in 2021, corporate profits could account for about double that, nearly 60% of inflation, meaning it was not costs driving inflation. It was corporate profits. Now, some economists hear this and think this is proof that companies were just using inflation as an excuse to gouge customers.
At a macro level, in a large company/business, your employees expect raises for a variety of reasons (inflation, quality of life, promos, etc). A new product or feature may require hiring additional employees. If an employee exits, you may need to spend more money to hire a replacement. In addition to all of that, there are contractual obligations with vendors, your customers may be trying to eliminate product (or leave entirely), etc.
All of that raise the cost to run the business. If you want to keep your margin you need to raise your prices, cut expenses, or both.
You don't have to grow in real terms as long as you don't promise equity investors you'll try to grow.
If you don't even grow nominally, you won't outrun debt and wage growth.
It's only a small sliver of the small business space that ends up being economically succesful.
Small businesses do frequently fail, but it's more to do with the fact that anyone can start one than the fact that they are small. If you allowed random people with no experience to start billion dollar megacorps, they'd fail too.
And there are plenty that generate pretty serious profits, triple or more what you could earn in a traditional job.
One benefit of local "anything" is that the prices are often way better. Ex: Live in a small town, the land rent can regularly be $1-2/sq. ft./month ($10-20/yr) while a quick on Sydney (where Gamurs is located) runs $8-10/sq. ft./month ($90-$100/yr).
Frankly, Sydney's mostly already subdivided into work shares from what I've seen, and its difficult to even find a spot that's not just $500-1000 / worker / month rates (or "contact for price"). Its part of the reason Sydney's childcare is ridiculous, cause the space to even have a facility cost so much (and you have to have a min reg space per child).
Also, there just wasn't inflation in some places for a few decades, so they just haven't had to deal with it. (Which also means there hasn't been wage growth.)
A business that raises prices to match inflation is not growing by any definition.
Did they raise any money?
I mean it was purchased by a company that unironically calls itself Gamurs Group.
I also doubt there are a lot of deals where a previously profitable company is unprofitable after the deal. There are two reasons for this. One, it's bad business. Two, very few people are going to lend money for this type of acquisition. If it does happen, it was either probably a mistake or an error.
Perhaps - but the fact that a trick has become well-known where companies are acquired only to be burdened with debt from the acquisition is rather telling. And that is not helping profitability.
As someone who's less into business / financial news than eg. curling news, I know of a ridiculous amount of companies where this happened. So I really do not doubt this is a common strategy.
Companies bind a lot of money (in assets but also less concrete goods like people and expertise).
If you buy a company you need to pay for all of that even including _"potential"_ even if realizing that potential also would likely destroy the company.
So if you pay for it with liquidity that would "just" bind liquidity.
But if you pay for it with credit you now have to _pay of the credit_ or at least pay the interests.
So if the company made 100x€ profit every month but you have to pay 200x€ in interests every month to pay it of after 20 years then the investor loses 100x€ every month. Now that is the investor not the company and after 20 years they would make 100x€ profit, but for most investors that would be a major losing deal (I mean ignoring interests on interest, inflation etc. that would be 40€ until crossing even!).
In such situation the investor has a few choices, one paying of the additional 100€ with profit from a different company bought before where any interests are payed of. But humans only life so long, which brings us to the other solution:
Forcefully raise the profit from 100x to 200x to pay of interests squeezing out the company, then either resell a "now more profitable company" for more money or if the value of the company falls have some shenanigans ready to tax write of the loss in value....
Worse similar to a mortgage you can take on a house you can (at least in the US) make a contract where you get a credit you have to use to buy a company (or more like the lender directly pays a part of the cost) and the insurance for the credit is the company itself leading to a situation where the company basically now has to itself pay the 200x interests instead of the buyer. (example Twitter).
Now I'm gross oversimplifying things, but basically our financial system is so messed up that if a sustainable company gets bought there is a good chance it gets fucked up soon afterwards in one way or another. This in turn is not sustainable for the industry as a whole.
Now you might argue what has that to do with this case as not a person but another journalistic outlet bought them, well that other outlet is for profit and is likely to act as much as described above as a person. Buy, squeeze, resell or buy gut-out and write of is as much a case there then if a unrelated 3rd party would have bought it, and gut-out works much better if the buyer is from the same industry branch.
I understand what you're trying to say here, but it's extremely naive. For one, the employees definitely care, because they want their pay to keep up with cost of living. The owners want the business to be successful so they get a return on their investment.
> Why is it never good enough to just have an ongoing business that works?
Unfortunately, as soon as you employee people it is never good enough to make sure the business operates without growth. Unless, of course, you're wealthy enough to fund the business through the hard times.
That's what I am unconcerned about. Being so concerned about attaining wealth that you sacrifice the value of what you already have in a misguided attempt to do so is the naive thing.
That’s why people care if it grows.
Now, I would like to get back to hobbyist development, just for giggles, but I've wound up with so many obligations, it's hard to find time.
Hence you get situations like the focus of this discussion; the people who actually do the work and draw in the visitors getting treated terribly by out of touch execs, and many sites cratering as a result of similar poor decision making.
But they're the 0.1% of the 0.1%.
All this comes together to create an environment where everyone is working furiously for the payout, but most will lose, and you have few friends on a sinking ship.
Contrast to a more stable market with clear lynchpins that is slow to change. That kind of environment is less equitable and meritocratic, but managers at a tiny company with 0.01% market share will struggle to whip their employees into repeated 80 hour weeks.
"Creative" industries always will suffer from this, it's just a matter of how bad someone let's things go. Because of the flip side corporate environments give us Call of Duty 44, that in reality they offshore most of the work to "3rd World" countries where little to no oversight happens.
To give context for "only thing keeping The Escapist afloat" - this isn't the first time The Escapist has imploded. Around 2013/2014(?) there was a big blowup, I think The Escapist was bought out, and the new owners terminated a bunch of people and only (really) kept on ZP. The owners basically bought The Escapist for ZP. They ran as a skeleton for quite a few years, and recently (2021?) they started doing more stuff. Their 3 Minute Reviews have been pretty good, and the Cold Take series has been great.
This is disappointing for me. I thought they were going in a good direction. It's too bad that management decided that they didn't want to keep funding interesting, well considered voices.
*Edit: I'm referring to the whole publication, parent comment might've strictly meant the Zero Punctuation show.
Anyway, I thought The Escapist died a long time ago, it's fun to reminisce about the one that I liked the most and to hear from everyone else about this later The Escapist that has died even to the point of angering the golden calf of ZP itself.
edit: He and some other former Escapist crew are doing something, and their Patreon leaked [2]
[1] https://yzcroshaw.itch.io/starstruck [2] https://www.patreon.com/SecondWindGroup
He's a better writer than many famous authors, and narrates his own books as well.
He has multiple video series, a live stream and about six novels i can name.
And as others note, he has hobbies and moderately successful side projects outside this envelope.
[1] - https://www.nytimes.com/2020/07/28/business/media/deadspin-s...
Thats sad. Nothing gamurs does with it will be successful. Yahtzee, both in his voice and in the video content itself, is far too linked to Zero Punctuation.
I'm sure whatever Yahtzee does next will be successful but it will be lesser without the ZP name attached.
Looking deeper than names, several roles in the executive level changed over the last 12 months ('22 and one in '23). The CEO has been there forever.
So perhaps it's reasonable to guess they are in an acquisition phase, and are squeezing their portfolio to meet their new higher financial goals.
What do you think?