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The gaming industry is overdue for a crash to reset the market

It's just Microsoft? So EA, Activision, Ubisoft, take two, Warner bros etc don't need any correction or fixing at all?

They do since they all share the same NDA. Take-Two still has GTA, but higher towers have fallen.

Gaming Western corporations urgently need to come back to their roots or else they will go under, one after another.
 

ProtoByte

Member
Given all the news we’ve been seeing lately over the last few years and especially in these last few weeks, one thing is clear:

We need a gaming industry crash.
It just sounds like you've never been exposed to the game industry before. This volatility is nothing new.
Obsession with live service games, micro transactions, engagement, concurrent players, endless upon endless broken day 1 releases with infinite patches to fix a problem that can’t be fixed:
A lot of this seems to be a result of gamers not being willing to pay more up front for their games.


Games no longer take risks. Nothing is ever groundbreaking or original anymore.
You don't think this has something to do with the fact that the industry is mature now and there's only so many ways to design a game?
 
While the quality of the games is subjective, the fact is that both games launched in quite a shitty state and needed tons of patches to run properly.

I played through BG3 from Act 1-2 on PC and Act 3 on PS5. I never had any issue that I would call the game in a shitty state. This was from day 1. It always ran properly. The worst issue I experienced was my team not jumping with me which I admit was pretty annoying.
 

Three

Member
People wanting a crash is just the most bizarre thing I've seen. All it will do is make a lot of people unemployed and struggle in life. Why would anybody want this? Why do people think it will give rise to the good old days? If anything the ones that will survive are the big players who do the questionable things like microtransactions, mobile, big IPs like COD. Big companies like EA or MS would survive any crash like a roach because it has so much money. They would just gobble up everything for cheap to give you the same things that monetise the same. It's the little guys that would struggle.
 

IDKFA

I am Become Bilbo Baggins
It's just Microsoft? So EA, Activision, Ubisoft, take two, Warner bros etc don't need any correction or fixing at all?

No? It's up to them what they make and up to the public if they want to spend money on it.

How will a complete crash of the industry help?
 

64bitmodels

Reverse groomer.
A lot of this seems to be a result of gamers not being willing to pay more up front for their games.
It's not our fault publishers keep making overbudgeted projects. Just make smaller games. They come out faster, they're just as good most of the time and they are cheap.

Gamers would not pay more up front for their games because even if game prices rised to 120 dollars that would inherently limit the audience of a game. And that's not even taking to account frequent sales, used games, piracy, and digital game keys. Rising game prices wouldn't solve the problem it would just make them less accessible and incite more outrage.
 
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Alebrije

Member
Not it won't , just look at the studios earnings, Nintendo, Capcom, Even Konami are doing money.

Just because some companies are behaving Bad does not means all the industry is doomed.
 

Mr.Phoenix

Member
Jesus, MS and idiotic companies that act like them (looking at you embracer); is NOT THE GAMING INDUSTRY.

The gaming industry is fine, and making way more money than was mode in what most consider the golden era of gaming (PS2 gen), so the mere idea that the industry is somehow in trouble is ridiculous at best and stupid at worst.

What we have is an industry with excessively bloated ideas of profits and sustainability. And industry where if your game doesn't rake in a billion dollars its hardly considered as a success. And even the media feeds into this nonsense. Once upon a time if you made a game that sold 5M copies, it would be called a commercial success a best seller even. Now, even if a 5M selling game makes three times what it was used to make the game, it would still be considered like it has underperformed.

Nonsense. And threads like these are part of the problem. The same way the suits running gaming for us are there constantly chasing the next biggest trend as opposed to just making good innovative and fun games, its the same way gamers have the brain of a goldfish and are constantly looking for the next record-breaking thing/trend/IP to jump onto and ignoring all the other great games there are to play.
 

Loomy

Thinks Microaggressions are Real
And what exactly do you think will happen in a crash? Do you think all of a sudden games you deem worthy of existence, or "good games" will emerge and the crap will disappear?

Industry crashes, vultures swoop in and buys all the IPs. I'm talking people like Embracer, but worse, because they don't give a shit about games. They only want the IP. A fraction of those get turned into movies/TV shows. Most end up worse than the 'bad' games you're complaining about

Not to mention the hundreds of thousands of people who would be without a job, entering a job market that is already precarious and uncertain at best for tech workers.

No good will come from a crash.
 
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feynoob

Gold Member
Sadly, there won't be any crash.
People have disposable income to splash on video games these days. Rich people spend too much money on mtx.
 

feynoob

Gold Member
Jesus, MS and idiotic companies that act like them (looking at you embracer); is NOT THE GAMING INDUSTRY.

The gaming industry is fine, and making way more money than was mode in what most consider the golden era of gaming (PS2 gen), so the mere idea that the industry is somehow in trouble is ridiculous at best and stupid at worst.

What we have is an industry with excessively bloated ideas of profits and sustainability. And industry where if your game doesn't rake in a billion dollars its hardly considered as a success. And even the media feeds into this nonsense. Once upon a time if you made a game that sold 5M copies, it would be called a commercial success a best seller even. Now, even if a 5M selling game makes three times what it was used to make the game, it would still be considered like it has underperformed.

Nonsense. And threads like these are part of the problem. The same way the suits running gaming for us are there constantly chasing the next biggest trend as opposed to just making good innovative and fun games, its the same way gamers have the brain of a goldfish and are constantly looking for the next record-breaking thing/trend/IP to jump onto and ignoring all the other great games there are to play.
The industry is not fine.

Great games doesn't dictate healthy industry.

It's a result based now these days. Good/bad game doesn't matter anymore.

If your game doesn't sell certain threshold, your company is at risk of closing down. That is the level we are in right now.
 
The crash is already happening, I mean if the massive layoffs and project cancellations isn’t an indication of a crash, then I don’t know what it is. But a lot of games take so long to develop now, the impact of this will not be felt until a couple years from now. The games being released now were all funded and developed prior to the crash.

Also, this is a AAA crash, not an industry wide crash, the indies and the smaller studios are still out there and their products offerings will increase and will offset some of the decline in revenue from the major publishers.
 

IDKFA

I am Become Bilbo Baggins
The suits realize there's less money in the gaming industry and bow out- corporations collapse. Then indie studios rise from the corpses to form a better industry

And who is funding and publishing all these indie studios? I admit that some get by without publishers, but a hell of a lot rely on big publishers to produce physical editions marketing, fund development etc.

You want corporations to collapse? So that would include Sony and Nintendo?
 
Market corrections are rough, but they happen all the time. And yet the market always comes back. The global economy post-9/11. The housing market in 2008/2009. We're now working our way through the post-COVID crunch.
And it's still insane to wish for a crash to happen rather than course correct as needed not to mention the uncertainty of the landscape after. Fuck all those jobs now because maybe it'll be better after for the players?
 

64bitmodels

Reverse groomer.
You want corporations to collapse? So that would include Sony and Nintendo?
They would survive a crash. Well, Nintendo anyways. Sony is uncertain.


And who is funding and publishing all these indie studios? I admit that some get by without publishers, but a hell of a lot rely on big publishers to produce physical editions marketing, fund development etc.
This is a bit of a tough question to answer, but also we did manage to get by on below 1 million budgets before FF7, with less advanced and efficient dev tools. Less money wouldn't be that much of an issue.
 

mystech

Member
The main issues with modern gaming IMO seem to be:

1. AAA companies that are publicly owned (either directly or under the umbrella of a larger company). Many of those companies create games that appeal to their shareholders rather than what people actually want in terms of quality and gameplay innovation. Release timelines are also set to appeal to shareholders rather than what developers need to ship a finished product.

2. Crazy long development cycles making games more expensive to make and harder to break even.

3. Trend following. When one live service does well, all the developers try to create their own. We get flooded with open world games that are empty just to follow the “sandbox” trend. We get flooded with FPS games because someone decided the best way to explore game worlds was as a floating camera with a gun. Every game has to have RPG elements, in app purchases, “woke” characters, the list goes on.

With that in mind, I don’t think a crash is what we need. Who know we not fully recover from a big crash in todays world. Especially with younger generations showing slightly less interest in console gaming. I think what we really need is:

1. More AAA companies that are privately owned and unwilling to be acquired by any of the big 3 (especially Microsoft). Larger projects by smaller companies may go the crowdfunding route or create exclusive partnerships to support development.

2. Ethical use of generative Ai. I know a lot of people think Ai use will lead to even more soulless games but it really depends on the developers. As someone who uses Ai for development, I can 100% say Ai has actually freed me to be more creative as I can have Ai do the repetitive and mundane task while I focus on creativity. In game development, Ai could definitely lead to lower budgets and faster development cycles while also allowing developers to be more creative.

3. More innovation and experimentation. We need more games that are truly something different rather than half the games feeling like the same thing with a new skin and story.
 

IDKFA

I am Become Bilbo Baggins
They would survive a crash. Well, Nintendo anyways. Sony is uncertain.

Even if they survived, we're still talking tens of thousands of people losing their jobs. Is that a price worth paying for your gaming utopia?

This is a bit of a tough question to answer, but also we did manage to get by on below 1 million budgets before FF7, with less advanced and efficient dev tools. Less money wouldn't be that much of an issue.

That was 30 years ago 🤦
 
The videogame industry is a lot bigger than consoles. In fact it's A LOT bigger than MS itself, which is a drop in the ocean.

The industry has its issues but it's not crashing in any way. The things MS was pursuing the most ARE stagnating (subscriptions) but the industry is doing great. Sony keeps breaking revenue records, Nintendo was never this healthy, etc...

Development costs are increasing a lot, development time is as well...but we're a long way from a crash.
 
It tickles me that folk here hark back to the previous crash as needed now to get rid of the suits when the original crash was at a time the pioneers of home videogames, the original creators, were in control of the market :messenger_grinning_sweat:
 

JimmyRustler

Gold Member
Not gonna happen. Most of the big pubs have their MTX cash cow that is making them mad $$$ - and the peasants seem to loooovvvveeee it.

The only thing that is going to happen is that we'll see less and less classic AAA games because usually they do not generate nearly as much income. Best we can hope for is that every now and then a game or two will slip through the cracks.

Meanwhile, enjoy the classics.

God dammit, when I was young there were all the games but I didn't have any money. Now I have no money and there are no games.

PS: I know there are plenty of games but I mostly gave up on indie games. They tend to just not vibe with me and they'll never even reach the quality of even the PS2 AAA games.
 

hemo memo

Gold Member
Don’t pre-order games. Buy on sales. Remember, you probably have more games than you can play. Nintendo obviously the exception as their games rarely goes on sale.
 

RoboFu

One of the green rats
Nah it doesn't affect Nintendo. Nintendo will keep everything up. They are single-handedly carrying the industry again in creativity and sales.
 
There's no doubt, this generation is easily the worst in terms of consumer choice, competition, sustainability, all of it.

Chaos everywhere, nobody seems to have their head screwed on.
 

Danny Dudekisser

I paid good money for this Dynex!
Talking about an industry-wide crash is nonsensical. There are segments of the business that will change - you're seeing that happen right now. Massively budgeted AAA games? Over-optimistic attempts at GaaS? Those are starting to get culled, and that's going to continue. I think we'll see a shift to more modestly budgeted games that take fewer financial risks but are allowed somewhat more creative latitude. Not to the point of what we saw during the PS2 era, but better than what we have now. I think indie games - especially the more polished ones, are going to start taking a much more prominent space in the business. Once more of these sorts of games become more of a focal point of 1P marketing, I think that segment will start to take off. However stupid the people running a lot of the big studios are, there's no way they aren't looking at this year's success of stuff like Palworld, Helldivers 2, and Manor Lords and taking some serious notes on how to direct their development efforts.
 

midnightAI

Member
The industry is not fine.

Great games doesn't dictate healthy industry.

It's a result based now these days. Good/bad game doesn't matter anymore.

If your game doesn't sell certain threshold, your company is at risk of closing down. That is the level we are in right now.
It's always been results based

Speaking of which, and looping back around again, Gamepass.... Yeh, about those sales...
 
Talking about an industry-wide crash is nonsensical. There are segments of the business that will change - you're seeing that happen right now. Massively budgeted AAA games? Over-optimistic attempts at GaaS? Those are starting to get culled, and that's going to continue. I think we'll see a shift to more modestly budgeted games that take fewer financial risks but are allowed somewhat more creative latitude. Not to the point of what we saw during the PS2 era, but better than what we have now. I think indie games - especially the more polished ones, are going to start taking a much more prominent space in the business. Once more of these sorts of games become more of a focal point of 1P marketing, I think that segment will start to take off. However stupid the people running a lot of the big studios are, there's no way they aren't looking at this year's success of stuff like Palworld, Helldivers 2, and Manor Lords and taking some serious notes on how to direct their development efforts.
It doesn’t matter how hard they look at Manor Lords, they will never be able to duplicate it.

The same way no publisher can hope to have another Harry Potter series or A Song of Ice and Fire by hiring a thousand writers.

The Manor Lords guy didn’t start with the idea that he’s going to make money from gaming, and then came up with the game to do it. He started with a game he wanted to make, and it was so good he was able to make money from it.
 

Z O N E

Member
We're seeing the start of it now. Bad planning, bad management combined with the new generation of kids not caring about console style gaming. Left a lot of publishers and investors holding a big, stinky bag. In the long run it's going to be a good thing for the types of games we like. I think we will see lower budgets in general and smaller teams, but that's a good thing. One of the worst things to happen to gaming was all major projects required everything to go through investor and focus group committees. So we had this ability to make nearly billion dollar games, but the content in these games was ground down to colorless, homogenized paste.

Don't forget COVID, when these companies all over hired and then went all PikachuSurpriseFace when they realised they weren't making the same money as they were during COVID.
 

ProtoByte

Member
It's not our fault publishers keep making overbudgeted projects. Just make smaller games.
Because people have demonstrated so much care and willingness to pay for those.
They come out faster, they're just as good most of the time and they are cheap.
They are not cheap. This is what some of you guys miss; everything is more expensive these days. The "AA" game of today (which was the AAA of yesterday), costs more time and money than ever.

And that's not even taking to account frequent sales, used games, piracy, and digital game keys.
I can think of solutions to all of those.

-Holding at full price for years on end Ala Nintendo - who has convinced tens of millions to pay premium prices for sub PS3 fidelity games.
-Digital prioritization
-DRM

Lmao

Rising game prices wouldn't solve the problem it would just make them less accessible and incite more outrage.
Whose fault is that?

Something has to give. You guys (and you know what I mean when I say this) ant better games with better graphics and more interactivity/freedom at the same price, while developers never get fired, their pay and benefits increase, and they never have to crunch. It doesn't fit together.
 
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Red5

Member
Gaming industry went too big for its own good, its why I mostly keep an eye on AA or indie games, they're already rivaling AAA studios in terms of quality and gameplay.
 

S0ULZB0URNE

Member
Given all the news we’ve been seeing lately over the last few years and especially in these last few weeks, one thing is clear:

We need a gaming industry crash. While it will be painful and difficult, it is necessary to restore order in the midst of the chaos.

It seems like over the last decade we’ve been spoon fed trash upon trash, and gaming companies have shifted to producing games that are made to extract as much money as possible from you but without providing anything redeeming or inherently fun in return. Games aren’t games anymore, they’re just ”products”.

Obsession with live service games, micro transactions, engagement, concurrent players, endless upon endless broken day 1 releases with infinite patches to fix a problem that can’t be fixed: you can’t patch a game to fix lack of creativity and lack of passion.

Games no longer take risks. Nothing is ever groundbreaking or original anymore. Game developers have been largely been castrated by soulless corporations that pay more attention to excel spreadsheets than their own creators and fans. Everything is done by committee and has to check every box conceivable.

Might as well let AI make games now, because from what I am seeing the humans aren’t doing a good job of making games anymore.

We need a crash. Time to reset the market.
Xbox guy?
 

64bitmodels

Reverse groomer.
Because people have demonstrated so much care and willingness to pay for those.
They literally have- Nintendo is the biggest example of this. Not to mention indies like Hades and minecraft experiencing tremendous success.


They are not cheap.
Significantly cheaper then at least. A 10-20 million budget game with a team of 50-100 devs goes a long way and it's certainly more cost effective than 300 million budget Spiderman 2 and 9000 dev count Diablo 4. They keep spending all this manpower and time on games when in reality it's all just useless diminishing returns- too many cooks spoil the broth

Holding at full price for years on end Ala Nintendo - who has convinced tens of millions to pay premium prices for sub PS3 fidelity ggames
Except that even Nintendo fans buy physical and look for sales and deals often. plus 60-70 dollars for a full video game is still far less expensive than the ludicrous prices youll suggest

If games actually get that expensive even then... people will stop buying. Simple as. even the fifa and cod fans will eventually stop purchasing when the prices get too high- it's hard to convince your average human being to spend 150 dollars on 1 video game. If you can't get sales and you can't get used, you just don't buy it. People already are playing older games just as much if not more whether it be GAAS games that came out half a decade ago or classics from the older gens. Congratulations you've made another crash which is what we've wanted.
Digital prioritization
Alan wake 2 launched digital only and paid for it dearly so clearly we're not ready yet for the all digital future. Steam gets away with it Sure, on PC. But if you tried that shit on a PS Gamer you'd have to pry the disk from their cold dead hands
If a sudden rise in DRM occurred there would also be a sudden rise in Crack groups trying to break the encryption.
 

simpatico

Member
Don't forget COVID, when these companies all over hired and then went all PikachuSurpriseFace when they realised they weren't making the same money as they were during COVID.
The free money era of 0% interest rates fried the brains of a lot of western companies. Covid was just the coup de grace because it combined that free money era with customers have waaaaay more disposable income then they realistically create.
 

64bitmodels

Reverse groomer.
Something has to give. You guys (and you know what I mean when I say this) ant better games with better graphics and more interactivity/freedom at the same price, while developers never get fired, their pay and benefits increase, and they never have to crunch. It doesn't fit together.
This is the paragraph that pisses me off the most.
You keep seeing these corporations and their disregard for video gsmes as a medium.
You see the CEOs exposing their strategies to make players addicted to their games and pay tons of money like whales.
You see the layoffs, studio closures and crunch despite the companies making record profits
You see all that shit but somehow think that if we just give them just a couple dozen more dollars, just a tiny bit more money, they will finally go back to making the groundbreaking genre defining masterpieces that they were consistently creating from 1980 to 2014. With great pay for the employees too.

And somehow I'm the naive one here who doesn't understand how anything works.
 
Some of you folks are patently absurd!!!

"Everything must burn because MS/Xbox has shat the bed!".... WTF?!?

If you weren't so blinded by your platform loyalty you would see that the industry, eastern and western alike, has been pumping out stellar games despite Spencer driving his platform into irrelevance in his grotty corner of the industry.
 

ProtoByte

Member
They literally have- Nintendo is the biggest example of this.
There's no point in discussing this further if you genuinely think that Nitendo's unique situation proves anything.
Not to mention indies like Hades and minecraft experiencing tremendous success.
The exceptions only prove the rule.

Significantly cheaper then at least. A 10-20 million budget game with a team of 50-100 devs goes a long way and it's certainly more cost effective than 300 million budget Spiderman 2 and 9000 dev count Diablo 4. They keep spending all this manpower and time on games when in reality it's all just useless diminishing returns- too many cooks spoil the broth
You're being universally optimistic with that 10-20 million dollar budget estimate. 2D platformer kickstarter games still need publishers after raising 7 figures.

Except that even Nintendo fans buy physical and look for sales and deals often. plus 60-70 dollars for a full video game is still far less expensive than the ludicrous prices youll suggest
I don't think 70 dollars this gen or 80 dollars starting next gen is ludicrous. Actually, it'll still be way behind inflation from 2005/06.

If games actually get that expensive even then... people will stop buying. Simple as.
For whatever reason, I doubt that. Weren't we 100% sure that would be the case with price increases this gen? Lol

Higher prices will mean fewer games make the cut... but that's not a crash. Or a bad thing, tbh.

even the fifa and cod fans will eventually stop purchasing when the prices get too high- it's hard to convince your average human being to spend 150 dollars on 1 video game.
This is not a market of the average human being in the first place.

Alan wake 2 launched digital only and paid for it dearly so clearly we're not ready yet for the all digital future. Steam gets away with it Sure, on PC. But if you tried that shit on a PS Gamer you'd have to pry the disk from their cold dead hands
Sure, but they did it anyway. And as much as this is all correct for single player games, it isn't true for MP shit.

If a sudden rise in DRM occurred there would also be a sudden rise in Crack groups trying to break the encryption.
You'll have noticed that everything I listed is stuff already in motion to some degree. DRM on digital isn't going to get less powerful. In fact with AI coding, you can expect it to get ever harder to crack.
 

fart town usa

Gold Member
AAA is due for a reset, and it's a few years into the process. It's been happening.

Just explore AA and Indies. There is no shortage of good games to play, many gamers are just shallow and turn their nose up at quality games because some douche on YT dog piled on a bit of jank or a "lack" of visual fidelity. "looks dated" no shit! It was developed by 30 people with a shoe string budget.

There's not going to be a crash, it's just pearl clutching from neck beards who cry over a lack of AAA games because these neck beards are too shallow to take a chance on a game that didn't score 9s & 10s.
 

HeWhoWalks

Gold Member
There's no doubt, this generation is easily the worst in terms of consumer choice, competition, sustainability, all of it.

Chaos everywhere, nobody seems to have their head screwed on.
And yet, the only company ACTUALLY in chaos is Microsoft with Xbox, while Nintendo and Sony continue to break records and sell well.

That doesn’t even cover the 3rd party companies who are also posting solid quarters of late.
 
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Note to OP:


The industry will be fine. MS will die and won't be missed by anyone sensible.
 

Three

Member
This is the paragraph that pisses me off the most.
You keep seeing these corporations and their disregard for video gsmes as a medium.
You see the CEOs exposing their strategies to make players addicted to their games and pay tons of money like whales.
You see the layoffs, studio closures and crunch despite the companies making record profits
They ones making record profits are the ones doing this. The ones who don't are the ones going under. That's what you fail to see. You want your cake and to eat it too. You buy a game that covers cost and avoid the mtx addiction games or you get the free stuff and rely on the whales. You can't say I want games that are cheap, that are well polished, and have great graphics, that have no monetisation. Something has to give. The industry has the data on what is selling and how they're covering cost. Unfortunately it's the whales buying mtx on mobile and f2p games.
 

Inuteu

Member
Game developers have been largely been castrated by soulless corporations that pay more attention to excel spreadsheets than their own creators and fans. Everything is done by committee and has to check every box conceivable.
thats the real root of the problem

games used to be made by passionate geeks programing endless nights

now is just another day in corporate hell. wiht the pressure for release dates and the constant threat of being fired overnight

corporate bullshit is destroying the industry
 
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