Gaming

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Is there an in depth analysis of what's going on in the gaming industry? (programming.dev)

submitted 2 weeks ago by onlinepersona@programming.dev to c/gaming@lemmy.world

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I've tried watching videos about it, but they are not analysing the reasons. Instead it's just whining about the symptoms and hypocrisy of rich CEOs firing employees then buying a yacht. We all know it's terrible, but my question is "why". "herp derp, capitalism" and "omg, it's the fucking CEOs" doesn't explain anything.

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[–] newthrowaway20@lemmy.world 5 points 2 weeks ago

It's really tough to pin it down to just one thing.. to me, it's a perfect storm. This is anecdotal, of course. But companies made several bad decisions in a row. They seemed to think growth during COVID was normal and would continue annually. Some companies bought a bunch of other companies thinking this would be a new big push in gaming. Embracer group comes to mind.

Other companies decided to divert their very talented developers away from the types of games they were so good at developing, and towards what the business wanted to chase as far as revenue opportunities. Gatcha riddled live service games. Ubisoft, WB, Sony, EA, Microsoft, practically everyone chased this trend. Some put everything into it. Others dipped their toes. Some pulled back before it cost them hundreds of millions. Some spent hundreds of millions and got nothing to show for it. Some companies lost a lot of talent when the really good developers left to go work on stuff they care about. Others had no choice but to cut the business down to the bone because of all the money and time they wasted chasing a trend.

The government also started raising interest rates, which makes it more expensive to borrow money. So a lot of companies aren't willing to spend the kinda money they used to, not without a guaranteed return. So now you will see more consolidation and less risk in the types of games being made by AAA studios.

So yea. I think there's several factors, all could have been planned for with actual solid management, but that's not the kind of management running these companies right now.