Is the gaming industry getting even less stable?
I know that EA, Blizzard used to be the most stable companies in the gaming industry -- almost like the government job of gaming. With the layoffs at Blizzard this year and all the drama happening -- Do you think that the gaming industry is becoming less stable? What factors do you think are affecting the industry?
Blizzard definitely feels less stable than it used to....Isn't EA on shaky ground with Anthem too?
Gaming always takes a hit in a good economy as people flock to other forms of more expensive entertainment. Just wait for the next recession and we’ll boom again.
Ha how deluded are you
Under the old model bH would be right. Gaming is super cheap entertainment per hour enjoyed. The problem is, our competitors are no longer each other. It’s all entertainment that takes up peoples time. During the last recession, iPhones and streaming was not yet widely adopted. Instagram didn’t exist. There’s now plenty of cheap options beyond the yearly COD release.
About a decade ago, the gaming industry was almost oligopolistic with a small handful of companies dominating the publishing part of the value chain (EA, Activision, Blizzard, Rockstar, and Bethesda). Over the last decade, there has been a significant increase in mobile and indie gaming especially with the rise in "Early Access" releases. This, combined with the saturation of major franchises (Madden, FIFA, Fallout, etc) has meant that incumbents are facing a more uncertain future. For every RDR2, there will be a dozen or so Anthems. In addition, few companies are really investing in their own engines over leveraging Unreal or Unity or Cryengine. This probably reduces some of the demand for talent relative to what might historically be required. Whats more, the emphasis on monetization means that game mechanics will get simpler leading to more "streamlining." Gaming jobs have historically have been fairly exploitative given that they're looking for "gamers" to give them a discount to work there. Its likely to get worse.
Solid dissertation, you pass! ☝🏼Everything up here is true. The “gamers discount” is especially accurate.
I’d say that the industry is no longer recession proof. EA learned some pretty painful lessons from Anthem. It’s not worth it to spend that much on a new ip with a questionable ROI. Especially because they’re held to a higher standard than mobile, who use slot machine tactics as their business model. So a cheap mobile game can rack in billions with mtx, and cost relatively cheap to make. While a AAA has quality standards, when they charge for loot,they get raked over the coals. Destiny, Star Wars, etc. If a Fortnite style business model drives development. Then gamers are shortchanged because developers are less willing to take risks. The real savior will be Game Pass/PlayStation Now. If the major players get gamers on a guaranteed revenue model. Then their only goal is to create great content so people want to stay in that eco system.
We're doing pretty well though.
Yes, Epic is kicking ass. It won’t last forever. But all of you should retire at 27.