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The gaming industry was really healthy the last few years what's going on now?
- Thread starter onQ123
- Start date
But as of now games are still selling really wellI’d like to think it’s a result of consumers getting wise to the same bullshit tactics and products we’ve been continuously fed for the last decade, and voting with their wallets, but who the fuck am I kidding.
Mibu no ookami
Member
Everyone overbought thinking gaming had nowhere to go but up during the pandemic, but now people are doing other things and the revenues are going back to pre-covid levels. That would be fine and dandy, but combined with high interests rates and longer game development times... it's a bad combination... when interest is up and sales are down... what do you expect?
Wildebeest
Member
Free money from investors vs not so much free money from investors. Part of this is people realising that the pandemic surge in players was not sustainable growth.
BennyBlanco
aka IMurRIVAL69
They thought covid numbers would last forever
Hudo
Member
They had a pretty big growth overall during the pandemic. And investors thought that this was somehow sustainable... until it wasn't (which anyone with common sense would've known). So now everyone tries to desperately save/make money in order to sustain that growth.
Cert.in.Death
Member
They’re all downsizing to figure out how to accommodate AI technologies. Some are in financial distress, but nothing so severe to warrant the cuts they’re inflicting.
Rhazer Fusion
Member
Less talent in the industry and greedy corporations that only care about money combined with a plethora of ignorant and nonchalant gamers who will accept practically anything the corporations spit out.
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Lord Malachite
Member
A combination of many factors.
Interest rates are absurdly high making the cost of getting funding too much in a lot of cases. People are engaging with games less now that most people are working in person again instead of remotely and a sense of "normalcy" has returned.
On top of these things, you have services like Gamepass and PS+ Extra/Premium eroding game sales because why spend $70 on a game when you can subscribe to a giant library of them instead? Not to mention the market is saturated with games to play and consumers are spoiled for choice. Most people don't need to run to a retailer or digital store to purchase new titles when their subscription catalogs and backlogs are overflowing.
Unchecked inflation is changing how people spend. Prices are skyrocketing and wages are not. When people are spending entire paychecks just to put food on the table, gas in their cars, and keep the lights on, spending on wholly unnecessary things like gaming is the first thing to be stripped out of the budget.
Interest rates are absurdly high making the cost of getting funding too much in a lot of cases. People are engaging with games less now that most people are working in person again instead of remotely and a sense of "normalcy" has returned.
On top of these things, you have services like Gamepass and PS+ Extra/Premium eroding game sales because why spend $70 on a game when you can subscribe to a giant library of them instead? Not to mention the market is saturated with games to play and consumers are spoiled for choice. Most people don't need to run to a retailer or digital store to purchase new titles when their subscription catalogs and backlogs are overflowing.
Unchecked inflation is changing how people spend. Prices are skyrocketing and wages are not. When people are spending entire paychecks just to put food on the table, gas in their cars, and keep the lights on, spending on wholly unnecessary things like gaming is the first thing to be stripped out of the budget.
Ozzy Onya A2Z
Member
I'm not sure it's less talent overall, I'd guess talent is spread too thin across the industry because there are so many games/studios/developments/devices/platforms going these days. The industry is the biggest it has ever been and growing still, it results in mediocrity from and for the masses.
EDIT: Also we just came through the pandemic and most gaming/IT companies reported record profits, so now see some contraction of that unnatural skewed event.
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Are they though?
Danjin44
The nicest person on this forum
gaming_again
Member
Interest rates going up. These companies weren't healthy. They just ran on free money. Interest rates drive every change like this.
gaming_again
Member
Not absurdly high - just back to normal. And inflation in the US is like 3.9%. This is just back to how things were before the reaction to 2008/9 distorted everything.
GHG
Gold Member
One word: margins.
Since covid:
Number of employees - up
Liabilities - up
Cost of doing business - up
Something had to give.
StueyDuck
Banned
I don't think ai actively caused any of this.
But it's certainly going to become the solution going forward.
And why shouldn't it
. Ai can be a tool that is supplemental, not a complete replacement.If ND can get out TLoU3 with only 200 people at a fraction of the time at a far lower budget then why shouldn't they.
Success
Member
It's AI.
Companies are cutting now in anticipating of AI productivity gains.
People talking about COVID and games not selling are too myopic in thier thinking. Games are selling and COVID has little to do with it.
Anybody that wants to talk about this topic in depth, PM. It is a topic I am fascinated about.
Companies are cutting now in anticipating of AI productivity gains.
People talking about COVID and games not selling are too myopic in thier thinking. Games are selling and COVID has little to do with it.
Anybody that wants to talk about this topic in depth, PM. It is a topic I am fascinated about.
efyu_lemonardo
May I have a cookie?
Responsible companies don't massively lay off employees until future productivity gains are guaranteed.
WitchHunter
Banned
Oh noes. It's the regular thing companies do when they want some air. Reduce the workforce.
Success
Member
Gaming companies have used AI for decades, they understand and can project the current and potential AI gains better than most industries.
Therefore they have a better understanding of needing to remove the excess capacity now.
DragonNCM
Member
Gaming is in declining quality past 3 years & that is true reflection from oversaturated market with game developers who don't care about gamers & their vision is only to make quick money. Most of today studios lost passion to make grate games & only direction they are heading is "make a game where they can grab most money in shortest time "
Once grate studios like Blizzard, Ubisoft Montreal, Psygnosis, Crystal Dynamics, Bioware and many more can't even develop any new game.
Once grate studios like Blizzard, Ubisoft Montreal, Psygnosis, Crystal Dynamics, Bioware and many more can't even develop any new game.
Dorfdad
Gold Member
I believe it’s a combination of things you’re now starting to see the effects of two years of lockdowns from Covid. You’re also starting to see the effects of rapid inflation. Everything is costing more and more and more people want more and more salaries, more benefits and consumers don’t want prices to raise for anything in order for these businesses to stay in business they have to make cuts and the easiest way to do that is reduce workforce which cost them the most..
efyu_lemonardo
May I have a cookie?
The kind of AI we've been seeing in the last few years hasn't existed for decades.
IAmRei
Member
I think we still going well, but c19 made mainstream people spend much in blast and pique interest of riches. And the riches spent investment in crazy. Then c19 ended, mainstream party is ended, game is return to their pre 19 state, and the riches see it not good and cut the fat. Then economic hard times put the nail in the coffin to the bubble party and... Here we are...
But who i am, just an enthusiast, knowing a little here. Just saying my though.
It might be wrong. And there are better explanation above by other GAF members
But who i am, just an enthusiast, knowing a little here. Just saying my though.
It might be wrong. And there are better explanation above by other GAF members
Has to be corporate greed because we have random games like Pal World & Helldivers 2 selling 10+ million in just a few months & we have Baldur's Gate 3 & Hogwarts Legacy still moving units from last year so when did the industry decide that they should panic & start laying people off?
Shouldn't they be busy trying to make the next big hit?
Shouldn't they be busy trying to make the next big hit?
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Guilty_AI
Member
MAKE WHAT MR. ONQ123!?!?!?
majorgamer10
Member
I think its time to rewatch Ghost In The Shell Stand Alone Complex
Men_in_Boxes
Snake Oil Salesman
All industries go through growth - cut cycles but clickbait headlines have poisoned the minds of many, forcing them to believe the greedy CEO narrative.
Jerm411
Member
There’s just too many games, the pandemic fooled companies into thinking gaming was going to blow up for years on end, and I think the thing that doesn’t get talked about enough is with PS/XBox specifically and even PC, we’re hitting a ceiling of diminishing returns when it comes to both consoles and games.
They constantly want to chase the power and all the silly buzzwords like resolution and framerate and ray tracing instead of just making something fun to play.
Budgets and development time are so far out of whack because everything has to be the “biggest, prettiest, and grandest” version of X game….
I do think Nintendo has cracked the code with the Switch and what they do 1st party wise and that’s why I think you’re going to see them dominate in 2025 with Switch 2.
They constantly want to chase the power and all the silly buzzwords like resolution and framerate and ray tracing instead of just making something fun to play.
Budgets and development time are so far out of whack because everything has to be the “biggest, prettiest, and grandest” version of X game….
I do think Nintendo has cracked the code with the Switch and what they do 1st party wise and that’s why I think you’re going to see them dominate in 2025 with Switch 2.
My phone froze before I could finish typing this but I don't remember actually hitting post I guess the phone did it on it's own when it stopped bugging out ( battery was low)
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Darkmakaimura
Can You Imagine What SureAI Is Going To Do With Garfield?
It's probably time for a new Riftwar game.
Bkdk
Member
gaming industry hasn’t been healthy for quite some time, most vocal people like Anita in early 2010s really messed up the priorities of many game devs, especially the western ones. Good thing though as it allows studios from other countries like Korea’s to take advantage of the western gaming self destruction. Now that more countries have caught up gaming industry is more competitive than ever.
Men_in_Boxes
Snake Oil Salesman
Hate this take. Every CEO and their mother knew that Covid was going to end. Nobody hired based off a perpetual doomsday scenario.
Punished Miku
Member
There are some true covid bubbles like Pelaton. Its real. Gaming covid bubble is maybe used a bit to often as an excuse but its probably real too. Same with streaming.
Danjin44
The nicest person on this forum
I'm start to think I'm the only one here enjoying gaming, what's with all doom and gloom? This year I had fantastic time with gaming, in fact my biggest issue was keeping up with all the games coming out back to back.
I guess mostly because I dont care much about graphics or tech and I mostly asian games.
I guess mostly because I dont care much about graphics or tech and I mostly asian games.
Astral Dog
Member
Covid gave it a boost, but now the economy is taking its toll everywhere, also Nintendo is silent since they are preparing their next platform, but next year will be pretty interesting
i can't say how healthy the industry will look in a few years but i hope for the best
i can't say how healthy the industry will look in a few years but i hope for the best