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'2024 Was the Year the Bottom Fell Out of the Games Industry' (wired.com) 123

The video game industry faced unprecedented turmoil in 2024, with layoffs reaching record levels and exceeding 2023's total of 10,000 jobs lost by 40%. Major studios including Microsoft's Arkane Austin and Sony's Firewalk were shuttered, while indie developers struggled to secure funding amid the downturn.

Industry analyst Matthew Ball attributed the crisis -- in a conversation with Wired -- to multiple factors, including rising development costs, shifting consumer spending, and game pricing challenges. Commercial failures of high-profile releases like Suicide Squad: Kill the Justice League compounded the industry's struggles.

The upheaval coincided with intensified online harassment campaigns targeting developers over diversity initiatives, echoing 2014's Gamergate movement. Despite critically acclaimed releases like Final Fantasy VII Rebirth and Balatro, the industry enters 2025 facing continued uncertainty around employment stability and the growing influence of AI.
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'2024 Was the Year the Bottom Fell Out of the Games Industry'

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  • Some poorly run companies went out of business!

    • by Tablizer ( 95088 )

      The "business cycle" seems to be fracturing by industry. Usually most things slumped at the same time, but lately it seems more industries have been "micro slumping" on different schedules. If true, it would at least reduce the punch of general recessions...in theory. Or many get double-punched?

      Still waiting for PopGPT. The evidence of actual revenue to justify those expensive server farms is weak. CEO's like to brag it's saving them money, but the use cases they give feel dodgy if one is allowed to dig. Lo

      • Rolling recessions have been a thing for decades. This isn't new, but the kerplop in 2008 and then the Covid forced recession made everything synchronize for awhile.

      • The "business cycle" seems to be fracturing by industry. Usually most things slumped at the same time, but lately it seems more industries have been "micro slumping" on different schedules.

        That's an interesting point.

    • Re: (Score:2, Interesting)

      Comment removed based on user account deletion
      • Re:Oh no! (Score:5, Interesting)

        by ravenshrike ( 808508 ) on Tuesday December 24, 2024 @07:33PM (#65037421)

        They spent 400 million on Concord. 400 MILLION! And were planning on kicking off an entire Concord franchise across multiple forms of media. Short of being the next Harry Fucking Potter there ain't no fucking way that would have been successful. Then there's Dragon Age Veilguard with 150+ million. Started in 2014, sabotaged by internal issues with Anthem and Andromeda regularly pulling people off the team, the initial build and team were completely scrapped. They were replaced by people who were told to make a multiplayer PvE game. In 2021 that idea was scrapped and the multiplayer aspect ripped out while they pivoted solely to single player using the multiplayer games assets and the undead scraps of writing still around from the first game.

        None of that even takes into account that the ESG funding loan terms which were SIGNIFICANTLY better than baseline and easier to qualify for if you checked the right boxes including hiring outside narrative design consultants*cough*SBI*cough* that were pushed for by Blackrock since 2016 and and multiple other loan agencies around 2019 all dried up in the 2022-2023 period, with many of the closures happening now being knock on effects of that particular bit of reprehensible idiocy.

      • Then the asshat trolls dump on good games that aren't great, and create coordinated review bombs on day one for "DEI" reasons, while praising other games that are 10 times more woke.

        I think it really depends on how its presented and what they're trying to get out of it. For example, doing either a retcon or outright breaking a major plot line for the sole purpose of "diversity" could piss off fans of any story driven work, and I think rightfully so.

        For example, I'm not a fan of star wars, but I totally get why the fans might be annoyed if not outright pissed over breaking the entire concept of storm troopers being a clone of just one guy because SAG-AFTRA had quotas to enforce.

        As a cou

        • by r1348 ( 2567295 )

          Storm troopers were canonically clones only until the end of the Clone Wars, then the Empire pivoted towards forced recruitment.

  • Rubbish. (Score:5, Insightful)

    by NoSleepDemon ( 1521253 ) on Tuesday December 24, 2024 @03:35PM (#65037087)
    Most of that is just corporate bullshit. The real reason the games industry shat the bed is that game developers continued to make overpriced, bug ridden, poorly performing and poorly written slop nobody wanted to play. And had the audacity to tell gamers if they should get used to not owning their games. Well the consumers have spoken, and it looks like those studios need to get used to not existing. For those developers that made games we actually wanted to play ... Guess what? They are doing just fine.
    • by gweihir ( 88907 )

      My impression as well. I also noticed that a rather large number of crowd-funded games with industry veterans in the teams did not do so well or delivered unplayable crap in the last 5...10 years. So that went (mostly) away again. Pity. Early access works well for some games, not so well for others.

      I think some greedy bastard studio owners went late-stage enshittification, but at the same time gamers increasingly talk to each other and crappy games will not sell anymore. As the Larian boss keeps repeating:

    • Season pass and Battle pass. As an old gamer grown up with shareware and piracy, I do not really understand how you can compel someone to pay extra for a game they just paid, or for an extension that you have not released yet.
    • Actually the biggest flops of this year have been free to play, had no bugs, and performed fine even on a potato. The bigger problem in 2024 was that most games were just uninspired and boring. Lots of money sunk into making grind fest clone of another grind fest clone.

      The ownership thing only really impacts a small minority of gamers, the vast majority of the industry is now in a position where they've grown up not knowing what ownership means.

  • pal world did great.

    American games made for nobody sold sub 700 LOL

  • by Morpeth ( 577066 ) on Tuesday December 24, 2024 @03:39PM (#65037093)

    "online harassment campaigns targeting developers over diversity initiatives,..." OR it could be this kind of shit doesn't belong in a fantasy RPG.

    https://youtu.be/tz5oehDRhbU?t... [youtu.be]. (pushups for 'misgendering' someone?)
    https://youtu.be/1JkPHdlJc20 [youtu.be] (randomly interjection of "I am non-binary" into a dinner conversation)

    I am left-leaning, but this kind of stuff keeps me from buying a game like this. I played the original Dragon Age Origins, totally loved it... THIS game is something totally different. I don't need someone lecturing and working out their own stuff in a game where I just want some escapism. NO ONE talks like this, especially in your classic fantasy/medieval setting. Not to mention this game is a disney-eque santitized version of Dragon Age when it comes to other dialog, storyline and violence. DA:O had some grim and dark stuff and difficult and ugly choices, this game is rainbows and unicorns

    • by PPH ( 736903 )

      pushups for 'misgendering' someone?

      But only five? My wife can do better. And she's just a girl.

    • Comment removed based on user account deletion
      • It's hyper sensitivity. You slap someone they might not react much out of shock and surprise and may even simply laugh it off. Slap them every day and you'll provoke an increasingly strong reaction. Either they'll cower and avoid you or you'll get the shit kicked out of you. Gamers have games they like, then one day a new trailer drops for the next instalment and it replaces all the elements they loved with things they hate. They are annoyed. Then the next franchise dose the same thing with curiously simila

      • by tlhIngan ( 30335 )

        But perfectly normal games without any weird stuff is pissing of the anti-DEI crowd. The character creation lets you pick pronouns, and they never appear ever again anywhere in the game, and people are freaking out over it.

        I remember seeing a game, I think it was called event[0] (this was about a decade ago) and one of the Steam comments was about how the options for pronoun was "He", "Her" and "They". And there was a Steam thread complaining about the "They" option and how that's ruining the game and all t

    • Re: (Score:2, Insightful)

      by AmiMoJo ( 196126 )

      Come on, you didn't just fall for out of context edited YouTube videos, did you?

      The manufactured rage over "DEI" in games has got to truly ridiculous levels now, with people complaining about the tiniest bit of cloth being added to an otherwise skintight and highly revealing costume. One guy nearly had an aneurysm over merely being given the option, not the default and not a mandatory choice, the mere option, of choosing their character's gender.

      He did it not because he really cares, but because there is an

      • by gweihir ( 88907 )

        Indeed. There is absolutely noting wrong in this regard with BG3. You essentially are given options and you are completely free to chose whatever you liked. And that was essentially it. No stuff pushed on you. You do not even need to play as a "good" character. Anybody that sees "woke" in there is simply in hysterics and cannot be taken seriously.

        • by AmiMoJo ( 196126 )

          It actually ruins some games, like Stellar Blade. There are parts that are supposed to be serious, but she's stood there in the most ridiculous outfit and it just looks daft.

          • by gweihir ( 88907 )

            No argument. (I have not looked at Stellar Blade, not a console gamer). It can definitely ruin a game. But the STEAM forums were full of hysteric people claiming "woke" and "ruined" for BG3 and that simply is not true at all. I have played it to almost the end (taking a break, but will continue next year) and there is nothing "woke" in this game that I have seen and that is not only because I play as "dark urge" trying not to do evil. I get really bad impression of those screaming loudest and most aggressiv

            • by AmiMoJo ( 196126 )

              It's very highly manufactured, like the stuff and "girl boss" characters. They complained about Peach in the Mario Bros movie, despite that being basically the standard model for women in movies for the last 20 years.

              • by gweihir ( 88907 )

                Indeed, "manufactured" covers it nicely. The supply of useful idiots is basically large enough to manufacture outrage over anything and everything.

    • by gweihir ( 88907 )

      Indeed. Discussion of social issues is one thing. Entertainment is another. If it is philosophical questions, mixing that can still work (see The Talos Principle 1/2), but social issues have no good answers and pushing a specific view in something that is supposed to be entertainment is just the completely wrong approach. Obviously, some people are simply in hysterics (like claiming BG3 was "woke" when it just gave you options), but when things get pushed on you and and a simple "no thanks" is not enough to

  • It's Obvious! (Score:3, Interesting)

    by gizmo2199 ( 458329 ) on Tuesday December 24, 2024 @03:44PM (#65037111) Homepage

    The stochastic terrorist threats posed by the ultra-Maga incel trolls aimed at the diverse and inclusive developer community, caused the main gamer demographic: non-binary, gender-fluid POC gamers, to recoil in horror and stop buying games and spending money on white-supremacist, hetero-normative titles put out by the corporate studios! I mean it's so obvious?!

    Or maybe just make more games with hot girls, T&A, and gory violence where some white guy is hero?!

    • Comment removed based on user account deletion
      • I'm not going to commit to anything on the look of the model because while I'm tempted to say the difference is massive and obvious, well it's not like I played it and I've only seen screenshots cherry picked by people who want me to think a certain way. However I feel like discussions that centre on the model being "ugly" are really just a canary in the coal mine. If it's true that the studio took an attractive real model and deliberately turned it into a less attractive 3D model (and some studios have lit

    • by AmiMoJo ( 196126 )

      Two of the big games this year were one where you play a monkey man based on Chinese folk tales, and one where you control a sex doll ninja. And people still raged when they added a tiny bit of extra Spandex to one of the latter's costumes.

    • Or maybe just make more games with hot girls

      www.pornhub.com There's more than enough there to get your fill. Not all of us needs that shit shoved down our throats.

  • by Hadlock ( 143607 ) on Tuesday December 24, 2024 @03:45PM (#65037115) Homepage Journal

    Games were a growth market in 2019-2021 with another 10% growth forecasted. A bunch of money flowed into games as a perceived can't-lose investment when covid money was cheap. Then money got very expensive and games growth slowed and the retracted ~1% from 2020 and has mostly leveled off.
     
    Not a total shocker that games bosses would move swiftly to trim costs and in particular use this opportunity to trim headcount where it would be best used (underperforming employees).

  • by derplord ( 7203610 ) on Tuesday December 24, 2024 @03:58PM (#65037137)

    > to multiple factors
    It's not multiple factors, it's just that gaming companies made games that people don't want to buy.

    Agenda driven garbage filled bugs, poor writing (both dialogue and stories) and full of extremely sleazy monetization.

    • Comment removed based on user account deletion
      • If you think a move is too woke then you don't need to go see it.

        Unfortunately that's not really the fix you think it is, because the reality is that this is precisely what happened across the board. The ones with all the hate are the ones everyone focusses on but so many other things failed too for the same reasons but didn't attract the same level of hatred. Because bad things are bad and unpopular. Usually.

        And as the "male Karens" as you call them make the most noise, with their "anti-woke" stances, it's hardly the only things failing in the industry. If games used to

      • If you think a move is too woke then you don't need to go see it. Just stop being the male Karens and let it go, don't ask to see the manager just because a game didn't meet your unrealistic expectations.

        The same applies to the other side. If the game is not woke enough, just don't buy it. Why complain on the internet, calling the creators names? Example would be Black Myth: Wukong.

        Or, alternatively, people can express their opinion whether a game or a movie is too woke or not woke enough. This is what they have been doing.

  • Fooled me once ... (Score:5, Interesting)

    by PPH ( 736903 ) on Tuesday December 24, 2024 @04:40PM (#65037175)

    I bought a game. Played it, liked it. Then they took the back end server down and said I had to buy the new version.

    • Now I wonder if my ancient copy of Diablo 2 still works. I only ever did single player.

    • Bingo. Mandatory online connectivity is the #1 reason I don't buy anything anymore.

    • And just how many years did you play that game for? Give it to me in terms of $ / hour of entertainment. I want to know how entitled you feel to have someone provide a server for you.

      I don't think you are anywhere near as marginalised as you think you are. If anything, maybe you got an excuse to try something new in your life in an industry that releases something new multiple times a day (the overwhelming majority of which does not require some back end server).

    • 2k, I'm looking at you. Swore I'd never give them another dollar over this.
  • by CubicleZombie ( 2590497 ) on Tuesday December 24, 2024 @06:35PM (#65037345)

    Now that a cart of groceries costs $300, I have a lot less money to spend on things like games.

  • There fixed it for ya.

    What other industry just churns out the same crap and makes as much money? Oh, right... movies and TV shows.

    Those are doing worse too, right? New companies moved into that area, spent a ton of money, and now are not especially profitable or successful. I'm ignoring the 'delivered across the internet' part since that wasn't new or unique. It's just producers trying to cut out the middleman, but only some of the time (yeah, that's going to work).

  • by MrKaos ( 858439 ) on Tuesday December 24, 2024 @08:03PM (#65037493) Journal

    Follow these steps:
    1. Make good fun entertaining games
    2. Stop gouging players for every cent they have

  • According to a study, the more attractive you are, the less you play video games. Guess we need more ugly people.
  • All we need for a turnaround . . . RDR3, GTA6

  • I think it is not so much the virus destroying these companies, but these companies know they are at the end of the line so they hire terribly inexperienced and talentless people for very cheap and then virtue signal as if it was something positive; but their real plan is to gain access to cheap cash which still exists in the market if you wave the right flags.

    And then the disaster unfolds on release, but the executives could get paid for a few years longer and get a golden handshake and they blame everyone

  • Once again a good team of a handful of developers can build a groundbreaking title if they use modern software tools and they know what they are doing. Big studios spending 300 Million per title have a hard time competing with that.

    On top of that big studios have been digging themselves into a hole by breaking existing IP by overloading it with woke trash, just like Hollywood.

    That gaming is in a transformation isn't that much of a surprise.

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