God of War writer names what is killing the gaming industry

Alanah Pearce, a former writer at Santa Monica Studio, released a video discussing worrying trends in the gaming industry. According to her, more and more studios are shutting down and developers are being laid off. The reasons lie in economics, technology, and demographics.

The main problem is dependence on investor expectations. The gaming market is no longer growing as fast as it used to. Free-to-play business models and battle passes no longer generate their previous profits. Investors are disappointed, and studios are losing funding.

Pearce also pointed to an unexpected reason — declining birth rates. The growth of new consumers has slowed down, and major companies are seeking salvation in developing countries. For example, Xbox cloud services are aimed not at core gamers, but at new markets.

A separate issue is “black holes” like Fortnite and Call of Duty. These games consume all of players' attention, depriving smaller studios of any chance. They don't even compete with other games, but with social media.

However, Pearce also sees positive examples. Baldur’s Gate 3 and Kingdom Come: Deliverance 2 are projects from independent studios free from investor pressure. Such games survive thanks to community support.

She urged gamers to support single-player games and studios that do what they love.

Video: https://youtu.be/9HM9nmqNioQ

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Cover author: Twistedvoxel. Cover source: Twistedvoxel