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Laura Fryer - Games Industry Bubble

Are we headed for another gaming industry crash?

  • Yes

    Votes: 42 28.8%
  • No

    Votes: 68 46.6%
  • Don't know / Don't care

    Votes: 36 24.7%

  • Total voters
    146

winjer

Member


Dragon Age Veilguard joins the ranks of Concord and Redfall in the history of commercial game failures. Bioware will never make their money back and it puts the studio at risk. Why aren't AAA games listening to gamers instead of lecturing them and why did the games industry bubble form in the first place?

Are we headed for an industry crash? Or is this just a temporary slump, and the market will right it self back.
 

marquimvfs

Member




Are we headed for an industry crash? Or is this just a temporary slump, and the market will right it self back.

Don't think we will see another crash like the one USA lived in Atari age. But for sure several big studios will go out of business. Today is easier to live just with overseas titles than it was at the time of the first crash, so, occidental market will for sure start copying whatever is doing great among the community.
 

Aenima

Member
Are we headed for an industry crash? Or is this just a temporary slump, and the market will right it self back.
The only thing crashing is western woke studios trying to shove agendas down players throats. For a decade now that western studios has dictated what players should enjoy and what is problematic, and finally players "woke" up and are voting with they wallets. THe power was always in the consumer side, but only now is being used to shape the direction games should go. Alot of studios are just learning it in the hard way.
 

Madflavor

Member
Gaming is too big and too diverse for an industry wide crash. I do think however there’s some level of an economic reckoning for the Western market due sometime soon. They’ve had a horrendous past couple of years, especially 2024. Overbloated budgets for games nobody wants. I expect course corrections down the pipeline.
 
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6502

Member
It is a difficult enough industry without baiting a huge chunk of the audience and generating negative consequences. Either proclamations of toxic gamers are the problem will win a new dedicated audience and the companies will be fine churning out the same product, companies will recognise the issue and correct accordingly before they lose the market or they will be in denial and fail until bust.

Looking at the streaming and movie industries I am not confident option 2 will be here any time soon.
 

rm082e

Member
"Are we headed for another gaming industry crash?"

No. But we are in the middle of a years long "rightsizing" event. We'll see more consolidation, more developers shutting down, and maybe even a publisher going away (Ubisoft). But a crash like the old days just isn't possible anymore due to the size and dynamics of the market. It's probably going to take another 18 months before things are settled.
 
They need to return to market research and see what their actual audience, the bulk of their consumers, wants.

They need to excise this bubble of devs and its incestous relationship with journo's and consultants, and just listen to feedback from their own communities that buy in.

Then they need to retain talent and institutional knowledge so the studios grow as they move forward.

This has been corrupted by a cross section of vanity projects of one or a handful of leadership team member they bet the farm on, and trend chasing the next get rich scheme. They always over spend, deafen themselves to community feedback, and then rush games out that changed directions atleast 3 times.
 

ProtoByte

Weeb Underling
Like it's been said, the '84 crash was different.

I'll say this: I do believe there's a correction happening right now, but it'll mostly impact the glut of independent games clogging up the stores. Either through a general collapse of sales in that area, a shift in curation policy from the big stores, or both.

That aside, I am not one of the doubters of the western AAA survival and continued dominance.
 

StreetsofBeige

Gold Member
I think what will happen is only bonafide AAA sellers get the big budgets. COD, Fortnite etc...

The days of a Concord or SW Outlaws or Veilguard getting giant budgets and 8 years of dev time are basically over. If that means the studio has to dumb down to a AA budget game then so be it.

And there's still more fat to trim. Lots of game studios gone and layoffs. More to come. I'm hoping game studios rightsize to being efficient groups like the old days where a group of 10 or 15 nerd looking dudes who truly care about games are making the games. Get back to the ones who are passionate about games. Not passionate about company paid cooking and knitting classes. I'm not saying it's possible in modern day to rightsize to that small of a group, but you know what I mean. Cut out the crazies and HR DEI promoters eating up budget and steering the games in the wrong direction.

What should solidify no more wasted resources is that interest rates are still high. So gambling all that money at rock bottom 2% business loans is over. Companies will adjust their spending as they got to take into account 7% debts now.

Back in the 90s was crazy. Read up on old games and it might had sold only 250,000 or 500,000 copies on PC. And that was considered a success and worthy of a sequel. Now, if a decent budget game sells 2M copies, it still might be an unprofitable turd. And the retail prices of games has even gone up and most games dont even have to worry about shipping the disc in a cardboard box either..
 
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Clear

CliffyB's Cock Holster
The truth is that big games take a long time to make, and I think that thanks to the direction of development being set on recently published titles probably 5-6 years ago, what we're going through is kind of COVID-era/Peak Woke hangover.

Creative leads on under-performing products will not get second chances. Pretty much every major publisher has ended up bitten-on-the-ass by AAA titles trying to chase "the modern audience", while Asian produced titles, offering more traditional fare, has prospered.

Honestly, the writing is on the wall.
 

Soodanim

Gold Member
A few drops of rain isn't the entire sky falling no matter how dramatic you want to be about it.

Dev studios have disappeared, but more will appear. Games have bombed, but other games don't bomb. If everyone is lucky lessons are learned from the mistakes.

Just think about it for a moment. There are yearly sports and shooter franchises that alone would sustain multiple companies and would continue to exist. We have Nintendo thriving doing their own thing, which would survive even if everyone else disappeared overnight. You would still have indies doing their own thing, and if bigger studios failed the smaller games would get more focus. I haven't even mentioned the big live service games.

Too many diverse avenues are raking in too much money in this juggernaut industry for it to get anywhere near being considered a crash by anyone that isn't trying to draw attention by FUD headlines.

At most you can say it's hard times. It's definitely not the end times.

When there are new balances to be found, some find it and some don't. That's just the way of the world and the way of business.
 

rofif

Can’t Git Gud
One more thing is that twitter controls the narrative.
When tlou2 fake rumors took over, the hype went down and people played the game with prejudice. The already hated it before playing.
Same with Forspoken of course. It was memed and hated before release without giving it a chance. And again - it was just fine. Of course I loved it because of how surprised I was since it was meant to be complete dog shit.

And then there is woke stuff. Nothing flattens your boner like politics in your escapism world
 

StreetsofBeige

Gold Member
And then there is woke stuff. Nothing flattens your boner like politics in your escapism world
Thats the company's fault, not gamers.

Making it worse is when studio employees go on social media battling it out with gamers with their own political viewpoint. Dont put politics into a game and gamers wont spread hilarious talking points about it on social media and game forums.

Only a small number of games ooze politics and those are the ones that get nailed the most.
 

chakadave

Member




Are we headed for an industry crash? Or is this just a temporary slump, and the market will right it self back.

Industry is too diverse for a big crash. Studios will close but that won't affecte verything. You have a lot of small indie devs.
 
this woman's good. hivemind's one of those phenomenon that's been greatly exacerbated by the internet, so much easier to stay insulated, & trick yourself into believing that everybody thinks this is all just wonderful...

i'm not really sure just how much the situation is capable of self-correcting. it's very, very deeply ingrained, & involves lots of revenue. also, you can't really clean house if you don't have other sources of talent available. if the industry does eventually slide into large language model game development, it'll be because of financial considerations & this: the lack of an experienced b-team of game development talent...
 

ProtoByte

Weeb Underling
Indies are doing fine.
Not strictly true.
You just don't hear about the sweeping layoffs and closures of indie studios because they don't get coverage and no one cares. There's too many of them on the market.

while Asian produced titles, offering more traditional fare, has prospered.
Also not strictly true.
The only Japanese publisher truly "prospering" right now is Capcom. And that's mostly because of a deluge of remakes and re-releases. To a lesser extent, Sega.

But outside of Monster, none of these games are 10-20 million + sellers.
 

The Cockatrice

I'm retarded?
Gaf is a bubble, but I don’t see how you can call that video a bubble, it was an objective analysis of how the industry operates, and the subsequent dysfunction it is experiencing, from someone with decades of experience in said industry 🤷‍♂️

Thats why gaf is a bubble, because you think that video is relevant to the actual gaming industry and corporations. no one cares about it as much as you want to believe it. Also I never said the analysis was a bubble. I am again, talking about its relevancy. Will there be change now that an asshole is the president? Probably. Probably not. I doubt it. I am noticing a trend with gaf lately though that I am distancing myself. Most of you seem to be living in an illusion and I may actually move on from here sooner than later. Anyway, enjoy your bubbles.
 
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DonkeyPunchJr

World’s Biggest Weeb
Thats why gaf is a bubble, because you think that video is relevant to the actual gaming industry and corporations. no one cares about it as much as you want to believe it. Also I never said the analysis was a bubble. I am again, talking about its relevancy. Will there be change now that an asshole is the president? Probably. Probably not. I doubt it.
lol did you even watch the video? I doubt it.
 

The Cockatrice

I'm retarded?
lol did you even watch the video? I doubt it.
Frustrated Headache GIF by Kelly Clarkson


learn to read.
 
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Raven117

Member
gaf and that video is also a bubble.
You have receipts on that, or just running your mouth?

Bubble or no, some games that have a certain “vibe” have been resoundingly rejected.

All in all, I do hope this recent line of failures will lead to developers taking a long hard look at what they are doing and the games they are making. If not, many western developers flat out, will not be around much longer.
 
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Not strictly true.
You just don't hear about the sweeping layoffs and closures of indie studios because they don't get coverage and no one cares. There's too many of them on the market.

I didn’t say indies were insulated, I was stating to the topic which is that gaming as a whole will be fine. The video was primarily speaking to larger studios. Even if there is attrition in that space indies will take the mantle. There are just too many options out there. AAA studios don’t carry the burden as they once did.
 

SmokedMeat

Gamer™
All because of woke and going digital.
Where are midnight launches for dudebros games? And I am not joking here lol

Digital has nothing to do with it. Who wants to drive out to a store and wait around with a bunch of dorks, when you can just have it installed on your system while you’re doing other things?
 

Mayar

Member
The video is actually correct, the fact that the connection between players and developers has broken down is unfortunately a fact. At some point in time, studios simply stopped hearing and listening to players, and began to promoting their vision and ideas. This of course does not apply to all studios, as for the press, yes, there is a kind of bubble, but it is actually mutual - the developers have fed the press, which is actually convenient for them, and the press has created a pleasant environment for the developers to present information. Players were not included in the plans of either, as we can see. And what is happening now is that the players have simply had enough and are starting to push back, and the press can no longer cope with the pressure.
 

The Cockatrice

I'm retarded?
Bubble or no, some games that have a certain “vibe” have been resounding rejected.

Veilguard hasnt been rejected tho. Its on mostly positive on steam and it's doing fine in sales. Not what they expected, but then again big corporations always expect A LOT. Even if it didnt have that woke character, it would've been the same. Most steam reviews barely talk about Taash. She isnt even the biggest issue with the game, far from it. Outside of gaf, only the extreme woke crap have been rejected which was Concord and that indie game. Spider-man 2 was extremely woke and yet it did absolutely fine sale-wise and people barely talked shit about it. Ragnarok was the same. Get fucking real, you guys are delusional af and my point was that video, even if its analysis is good, is irrelvant to the big triple A studios, no one will give a shit about it, hence, a bubble.
 

rofif

Can’t Git Gud
Digital has nothing to do with it. Who wants to drive out to a store and wait around with a bunch of dorks, when you can just have it installed on your system while you’re doing other things?
plenty of people.
And you realize you can get physical games in many ways?
Walk to the store, ship it to PO box or whatver.
besides, digital distances us from the product a bit. Walking to the store, interaction with people or just going to media markt was a ritual. Then smell of a fresh game!
 
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SmokedMeat

Gamer™
plenty of people.
And you realize you can get physical games in many ways?
Walk to the store, ship it to PO box or whatver.

Maybe it’s that way in Poland. In the U.S. we’ve got GameStop which people want to die, and retailers who simply don’t care.
 

Mayar

Member
Digital has nothing to do with it. Who wants to drive out to a store and wait around with a bunch of dorks, when you can just have it installed on your system while you’re doing other things?
It depends on the country and the mentality of the players, I had the good fortune to live 2.5 years in Japan, stores selling games are always crowded with people at any time of day.
Getting your butt off the couch is mostly only hard for people in the US and Central Europe =)
 
She is absolutely right.

The dynamic and blurred lines between "games journalism," PR, and marketing have always existed. However, the current situation adds a layer of culture wars, in which developers, publishers, and "journos" are against gamers...(their fucking customers). In which, devs are not selling a game, but an agenda.


I hope more of these games, which are preoccupied with pushing agendas and are unprofessionally praised by the media, keep flopping as hard as possible. These crazy people in positions of power need to
X0PQi7h.gif

of this industry.

related videos:

 

ProtoByte

Weeb Underling
Ah, I didn't watch the full video before posting. Silly me. It's pretty funny. I lol'd at Plato's Cave.

She's right of course. I wouldn't even say constant feedback with either gamers or the press is great. I mean, games were just fine before subreddits and discord servers that wind up creating their own echo chambers. Developers and publishers should have some level of perspective to just not do dumb shit.
 
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rofif

Can’t Git Gud
Maybe it’s that way in Poland. In the U.S. we’ve got GameStop which people want to die, and retailers who simply don’t care.
maybe.
Here, I usually order from few online stores that sell physical games.
Usually 5-10% cheaper than psn and free delivery. Sometimes even day before release.
And in Poland, we have this "inpost" service which is a post locker to which your item can be delivered and you open it with an app. We have like 5 of these on every street. It really took off.
I can order anything with free delivery and I have 2 days to pick it up from that locker of my choosing. So I just order to one on my way back from work.
Couldn't be more convenient for physical than this. For ordering anything really
 

Raven117

Member
Veilguard hasnt been rejected tho. Its on mostly positive on steam and it's doing fine in sales. Not what they expected, but then again big corporations always expect A LOT. Even if it didnt have that woke character, it would've been the same. Most steam reviews barely talk about Taash. She isnt even the biggest issue with the game, far from it. Outside of gaf, only the extreme woke crap have been rejected which was Concord and that indie game. Spider-man 2 was extremely woke and yet it did absolutely fine sale-wise and people barely talked shit about it. Ragnarok was the same. Get fucking real, you guys are delusional af and my point was that video, even if its analysis is good, is irrelvant to the big triple A studios, no one will give a shit about it, hence, a bubble.
So. No receipts. Just goal tending as always that lacks any semblance of common sense
 
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ReyBrujo

Member
I think we aren't headed for a crash but voted I don't care because I don't earn my living with games so whether the industry is healthy or dead it doesn't affect me. For an Atari-like crash we would need Sony failing really bad, like billions in losses, and that won't happen.
 

Danny Dudekisser

I paid good money for this Dynex!
Suggesting that we're heading for an industry-wide crash, let alone one the one in 1983, is ridiculous. But the writing's been on the wall for AAA for a long time. The budgets have gotten more and more unsustainable and they've simultaneously decided to laser-focus on alienating actual customers. The irony of it is they've made their games more niche than actual niche games, but at 10-20x the budget.

Given modern development timelines, I seriously doubt that some AAAs are going to be able to correct course before the funding dries up. But with AA games improving like they have been, I don't really think we're losing much when that inevitably happens.
 
this is an recent example of media vs gamers.



so, what’s the implication? That gamers are the scum of society? nice way to engage with a customer base that just wants entertainment. Maybe they need to figure out how to get the game to run at 60 FPS first. Perhaps this access media should actually ask hard-hitting questions to inform gamers as to why this dev is delivering a sub-par product.....
 

Raven117

Member
Yeah. It won’t be an “industry-wide” crash.

But things will change. They have to. Too much money is being lost.
 

mdkirby

Gold Member
Thats why gaf is a bubble, because you think that video is relevant to the actual gaming industry and corporations. no one cares about it as much as you want to believe it. Also I never said the analysis was a bubble. I am again, talking about its relevancy. Will there be change now that an asshole is the president? Probably. Probably not. I doubt it. I am noticing a trend with gaf lately though that I am distancing myself. Most of you seem to be living in an illusion and I may actually move on from here sooner than later. Anyway, enjoy your bubbles.
Why would any singular video be relevant to corporations. Hardly any of their leadership will see it. It doesn’t negate tho what she’s saying. It’ll be market forces that facilitate change, along with cultural changes and government and economic policy.

Companies are typically responsive to their bottom line eventually, particularly with the losses we’re seeing at the moment, and the high interest rates.

Companies typically are trend chasers too, which is often downstream of cultural momentum, the cultural pendulum has swung one direction the last decade or so, and has now swung in the other. So they’ll be responsive to that (how quick is another matter).

The new presidency could be a weird one…Trump is a vengeful asshole, and ran on an avidly anti woke agenda. Musk being his puppet master and a massive gamer will likely also have an impact. This could be everything from closing down DEI departments, legally prohibiting them in some manner, or pressuring financial institutions to scrap tying loan rates to ESG scores etc. There’s a lot of factors there which could have a big impact.

The other could be the continued collapse of traditional games journalism, and the bubbling “access journalism” controversies that are becoming more apparent by the day.

Personally with the advances in ai, I don’t think we’re far away from seeing the concepts of reviews change radically. Ai will play all the games, objectively understand their qualities, and based on your trophy history be able to understand how a game should be rated for you personally. One man’s 10/10 is another man’s 1/10, which is why meta scores are kinda dumb. Likewise how do compare genres effectively? You can very realistically have a big final fantasy game get an 8/10, and the same review site give a candy crush style game 9/10. Does that mean candy crush is a better game than final fantasy? Not to mention the gulf between user scores and paid critic scores.

Games are ofcourse taking horrendously long to make right now tho, so any changes actioned today won’t materialise in end products for years. We will sadly almost certainly have many more financial catastrophes like concord and dragon age and suicide squad still to come.
 

bender

What time is it?
It's an interesting look at relationship between publishers/developers and gaming coverage, but it largely makes me feel out of touch. I consumed a bunch of gaming coverage starting in the late 80s when my sister got me a subscription to Nintendo Power and I followed media coverage through various formats (print -> online -> video reviews -> podcasts -> wholistic video coverage) but largely stopped once my favorite sites fell apart with GiantBomb being the final nail in the coffin. I might be out of touch, but I don't really pay attention to reviews for new releases anymore and I do wonder how influential any given site or content creator is these days when there are so many voices out there. Then again, I'm pretty set in my ways and I mostly know what I'm going to vibe with so that might put me further out of touch.
 
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