The video game industry has faced significant challenges in recent years, with layoffs, reduced investment, and games failing to meet expectations. However, industry experts believe that constructive change is possible if companies learn from past mistakes and adopt sustainable business practices. At Gamescom 2024, developers, publishers, and studio leaders discussed how the industry can survive beyond 2025.
John Lau from Ustwo Games emphasized the need to address the “incentivization structures” that drive commercial operations, while Ashkan Namousi of Hooded Horse stressed the importance of realistic and disciplined leadership. Wade Rosen, CEO of Atari, highlighted the importance of financial discipline, advising companies to save funds to weather downturns instead of constantly expanding. Jonny Hopper from Glowmade reflected on the pandemic era, when massive sums were invested due to a surge in gaming demand, and emphasized the need for realism in spending.
Ryan Greene, art director at Rebellion, spoke about maintaining clarity of vision during the production process, knowing what they want to create, how much time it will take, and the necessary resources. The ongoing Microsoft-Activision Blizzard merger has been complex, with allegations of monopolization and layoffs. However, the labor neutrality agreement signed with the Communications Workers of America in 2022 has been a positive development, enabling multiple union organizations within the company.
Gaming resilience strategies discussed
To adapt to the evolving industry landscape, video game companies are rethinking their operating models. They are expanding their operational footprints, updating their mix of capabilities, and addressing challenges such as maintaining close player connections, attracting creative talent, and optimizing work processes.
Successful companies are following principles like accepting continuous improvement, rethinking work allocation, and reassessing their operational models to align with clear strategic directions. Despite the challenges, there is cautious optimism among industry experts. Christian Lövstedt from The Battle of Polytopia believes there is still room for innovative titles and smaller studios to thrive.
Constantin Andry points to the success of Monopoly Go as an example of how a well-executed publishing strategy can yield impressive results. Yasmeen Abbas, a project manager, remains optimistic about the next year and aims to work on a game that ranks in the MENA region’s top 20 grossing charts for at least six months. James Crabb from Gaming Partnerships sees positive trends in alternative app stores and rewarded marketing and engagement.
As the industry navigates these transformations, adapting to emerging strategies and models will be crucial for a more prosperous and resilient future beyond 2025.
