Podcast Summary
The gaming industry is shifting towards subscription models: Subscription models like Game Pass are changing how games are 'owned' and played, moving towards a rental model. This trend is expected to continue, with major implications for the entire gaming industry.
The gaming industry is undergoing a significant shift, particularly in the realm of the biggest games and their production and distribution. The rise of subscription models like Game Pass is changing the way games are "owned" and played, moving towards a rental model. This transition, which mirrors changes in other forms of media, is expected to continue and could have major implications for the entire gaming industry. The biggest game makers will need to adapt to this new landscape, and players will need to adjust their expectations and consumption habits. The future of gaming is becoming more accessible and flexible, with a focus on ongoing access to a wide range of titles rather than physical ownership.
Middle ground disappearing in Hollywood and video games: Hollywood and video games are focusing on big franchises or low-risk projects, leaving less room for mid-budget films and games with experimentation and risk-taking.
The middle ground in both Hollywood and the video game industry is disappearing, leaving only large-budget productions or small, low-risk projects. In Hollywood, the rise of streaming services and the success of big IPs have led to a devaluation of mid-budget films, leaving only safe bets or indie productions. Similarly, in video games, the increasing costs of AAA game development have forced studios to focus on big franchises, leaving fewer resources for mid-budget titles. This trend has been ongoing for some time and was accelerated by the success of certain franchises, leaving fewer truly new and innovative games coming from the biggest studios. The result is a industry that is increasingly dominated by a few large franchises and indie productions, with less room for experimentation and risk-taking in the middle.
Power shifting from publishers to indie developers: Indie developers produce high-quality games with smaller budgets, publishers struggle with tech debt and supporting large companies, indie engines and familiar developers help smaller studios thrive, the future of mega games is uncertain.
The gaming industry is witnessing a shift in power from large publishers to indie developers, who are able to produce high-quality games with smaller budgets and more agility. The fear for large publishers is that they can no longer afford to focus on a small number of franchises and must continue to release a few big games each year to compete. Indie publishers, like Devolver, are curating and elevating new talent, while larger publishers are burdened with tech debt and the need to support massive companies. The divide between creating new ideas and executing them is largely coming from the indie side. Additionally, the ease of use of indie engines and the ability to hire developers already familiar with them is making it easier for smaller and mid-sized developers to thrive. The question remains whether GTA VI will be the last mega game from a triple or even quadruple A publisher, as the landscape of the industry continues to evolve.
The Financial Pressure of Developing Large-Budget Video Games: The development of large-budget video games like GTA 6 carries immense financial risk, potentially leading to a shift towards smaller projects if high-stakes bets fail, as seen with the launch of Cyberpunk 2077.
The video game industry, specifically the development of large-budget, high-risk projects like Grand Theft Auto 6, continues to be a significant financial investment with uncertain returns. Despite the success of previous games like GTA 5, which cost around $260 million to produce, there's speculation that the development costs for GTA 6 have surpassed a billion dollars. This immense financial pressure can potentially lead to a shift in the industry, as the market may begin to favor smaller, more cost-effective projects if a few high-stakes bets fail. The recent launch of Cyberpunk 2077, which faced numerous issues and required extensive post-release support, serves as a reminder of the potential risks associated with these large-scale projects. The future of the AAA gaming landscape remains uncertain, and it will be interesting to see how the industry adapts to these financial pressures.
Understanding the nuances of AAA and indie game labels: AAA games are large-scale, expensive titles, while indie games are smaller, independently developed projects. Success depends on various factors, and the industry is evolving with possibilities like subscription services, collaborations, and emerging technologies.
The definitions of AAA and indie games are not universally agreed upon, making it essential to clarify context when discussing the topic. Despite the ambiguity, for the purpose of this discussion, AAA games will refer to the well-known, large-scale, and expensive titles, while indie games are smaller, often independently developed projects. Furthermore, the success of a game, regardless of its label, depends on various factors, and there's no guarantee that even the most anticipated titles will be successful. The industry is ever-evolving, and it's crucial to stay informed and adapt to the changing trends. As for the future of AAA games, there are several possibilities, including a focus on subscription services, increased collaboration between indie and AAA studios, and the integration of emerging technologies like virtual reality and blockchain. These possibilities will be explored further in the discussion. In conclusion, the world of video games is dynamic and complex, with the lines between AAA and indie constantly blurring. Understanding the nuances of these labels and staying informed about industry trends is crucial for anyone interested in the future of gaming.
The Dominance of Large Gaming Franchises May Be Ending: As consumer interest shifts towards smaller, innovative games, the gaming landscape could become more diverse and dynamic, with players spending on multiple titles instead of one big-budget game each year.
We may be witnessing the end of an era in video gaming, where a few dominant franchises have ruled the market for over a decade. These franchises, such as Call of Duty and Madden, have become so large and risk-averse that their quality has started to decline, and consumer interest may be shifting towards smaller, innovative games. This trend could lead to a more diverse and dynamic gaming landscape, with players spending their money on multiple smaller titles instead of one big-budget game each year. This shift is not necessarily a bad thing, as it could lead to more creativity and competition in the industry. However, it's important to note that this is not a certainty, and there will still be room for high-quality, blockbuster games in the future. Ultimately, this change represents the natural evolution of the gaming industry, and it's essential for developers and publishers to adapt and innovate to stay relevant.
A shift in the gaming industry towards smaller studios and indie developers: Traditional AAA publishers are releasing fewer games, while smaller studios and indies produce large-scale titles. Success depends on having a strong IP or making an annual sports game, but a 'prestige TV future' is emerging with room for niche, high-quality games.
The video game industry is undergoing significant changes, with fewer big releases from traditional AAA publishers like EA, Ubisoft, and Activision, but an increase in large-scale games from smaller studios and indie developers. The market is blurring as big companies produce downloadable titles, and smaller indie studios create larger games. Success in gaming now largely depends on having an A+ IP, a sequel, or making an annual sports game or game based on an extremely old IP. However, there's a growing trend towards a "prestige TV future," where a diverse range of high-quality, niche games will gain popularity, offering a more nuanced and varied gaming landscape.
The entertainment industry is shifting towards a more diverse business model: Streaming platforms and subscription services are driving change, enabling wider audience reach and experimentation, but financial risk remains a challenge for smaller developers
The entertainment industry, including video games, is evolving towards a more diverse and flexible business model. This shift allows for various types of content, from big-budget blockbusters to smaller, niche projects, to find success. The emergence of streaming platforms and subscription services like Game Pass is a key driver of this change, enabling developers to reach wider audiences and experiment with different genres and scales. However, financial risk remains a significant challenge in game development, and the success of individual projects can vary greatly. While larger studios and publishers with deep pockets may be able to absorb some financial losses, smaller developers face more uncertainty. Ultimately, the industry's future success will depend on its ability to balance creativity, risk, and financial sustainability.
The Tension Between Monetization and Creating Engaging Experiences in Video Games: Shareholders' pressure and profit maximization can negatively impact game quality, but the industry is starting to prioritize quality over premature releases.
The pressure from shareholders and the desire to maximize profits can lead video game companies to prioritize monetization over creating fun and engaging experiences for players. This tension can result in negative consequences, such as backlash from consumers and a decline in the quality of the franchise. The example of Halo illustrates this, as the franchise's shift towards monetization and business priorities led to a major calamity that required a reboot. However, there are signs of a shift in the industry, with companies starting to prioritize quality and polish over releasing games prematurely to meet deadlines. This trend could continue, leading to a more balanced approach between business and creative priorities in the video game industry.
Changes in the gaming industry: shift from retail to services: The gaming industry is evolving, with fewer companies controlling more wealth due to consolidation and acquisitions, potentially impacting diversity in game creation but offering more control over IP and financial gains.
The gaming industry is undergoing significant changes, with the decline of retail store shelves distribution leading to new ways of game discovery and monetization through services like Game Pass. However, this shift may result in fewer companies controlling the majority of the industry's wealth due to consolidation and acquisitions. While this could potentially lead to less diversity in game creation, it could also result in more control for companies over their IP and financial gains. The success of this approach remains to be seen, with the potential risks and benefits still under debate.
Dominant gaming franchises may continue to thrive: Major gaming franchises with dedicated fan bases and financial resources may remain market leaders despite competition, but they must adapt and innovate to stay relevant.
The future of the gaming industry may involve a small number of dominant franchises that continue to thrive despite market changes, much like how the iPhone has remained a market leader despite competition. These franchises, such as Assassin's Creed, Call of Duty, and Harry Potter, have a dedicated fan base and the financial resources to keep producing new content. However, it's important to note that even seemingly unkillable franchises can experience burnout and declining sales, as seen with Assassin's Creed's shift away from annual releases. Ultimately, the winners in the gaming industry are likely to stay the winners, but there may still be opportunities for new and innovative competitors to emerge. The industry is constantly evolving, and successful companies must be willing to adapt and innovate to stay relevant.
Live services games dominate industry with network effects and constant updates: Live services games, like Fortnite and Apex Legends, generate massive revenue through network effects and constant updates, presenting significant risks and long-term commitments for developers.
The live services game model, represented by titles like Fortnite, Apex Legends, and Warzone, is dominating the gaming industry with astronomical revenue and a constant need for updates to maintain player bases. This model, compared to traditional games, presents enormous risk and a long-term commitment for developers. While these games may not completely take over the industry, they have become the primary focus for many players and companies. The network effects of these games are massive, requiring not only attracting individual players but also large communities to make the game successful. Despite the challenges, the potential rewards are significant, as these games can generate revenue indefinitely. It's important to remember that various types of games, including traditional titles, will continue to coexist alongside live services games.
The gaming industry's multifaceted growth and transformation: The gaming industry continues to grow, attracting diverse audiences and transforming various sectors with technological advancements, while major players and newcomers shape the landscape.
The video game industry is multifaceted and continues to grow, attracting a diverse range of people across different age groups and demographics. The industry encompasses various sectors, including sports, lifestyle, children's entertainment, and communication. The future holds overlapping and conflicting trends, with gaming remaining a consistent growth area. While a few major companies and franchises will continue to dominate, new players may emerge and reshape the landscape. For instance, Epic Games with Fortnite and Remedy with publishing have already made significant strides. The entertainment industry as a whole is experiencing change, but gaming's growth is a constant factor. Additionally, the Weather Channel's use of advanced CGI for weather reporting is another example of how technology is transforming various industries.
Celebrating Early Supporters in Video Game Culture: Early supporters of new video games should be celebrated, not criticized, as they contribute to the game's success and growth.
The video game industry is full of surprises, and new franchises can unexpectedly become global phenomena, just like Minecraft did. It's rare, but it happens. For gamers, it's an exciting time with a vast array of options and affordable prices. However, there's an unfair stigma in video game culture where early adopters are sometimes criticized, and their enthusiasm is dismissed. This needs to change, as being an early supporter or discoverer of a game should be celebrated, not ridiculed. Overall, the video game industry is full of possibilities, and it's an excellent time for the audience to grow and become more welcoming.
Subscription services impacting game development: Subscription services like Game Pass influence game development by providing access to large libraries, benefiting smaller, narrative-driven games, retaining talent, and testing new ideas, but pose challenges for independent studios without contracts.
The rise of subscription services like Game Pass is changing the way games are made and monetized. These services, which allow consumers to pay one price for access to a large library of games, are influencing the development of new titles. For instance, smaller, narrative-driven games that might struggle to find an audience on traditional platforms could find success through Game Pass. Companies like Microsoft are using this model to retain talent and test new ideas, creating a healthier ecosystem for game development. However, for independent studios not affiliated with major publishers, designing games specifically for Game Pass could present new challenges, particularly if they don't have a contract in place before starting development. This shift in the industry could lead to more innovative and diverse games, but it also introduces new business complexities.
Subscription services changing game development: Subscription services like Microsoft Game Pass and Apple Arcade offer opportunities for innovation and discovery, but can also lead to artificially padded or monetized games. Developers must focus on creating high-quality, fully-featured games to attract and retain subscribers.
The existence of subscription services like Microsoft Game Pass and Apple Arcade can significantly alter the way developers create and monetize their games. The incentives of these platforms, which prioritize keeping subscribers engaged for as long as possible, can lead to games being artificially padded or monetized through intrusive methods. However, the requirement for a payment to access these services can help prevent the proliferation of such practices, as developers are more likely to focus on creating high-quality, fully-featured games to attract and retain subscribers. The curated nature of these services also opens up opportunities for discovery and experimentation, allowing developers to try new things without relying solely on proven formulas. Ultimately, the impact of these subscription services on the gaming industry is still unfolding, but the potential for innovation and discovery is undeniable.
AAA game prices: Sustainable or unsustainable?: AAA game prices have risen to $70 for next-gen titles, but production costs and development risks justify the price. Historical precedent suggests prices won't decrease significantly, but varied pricing is emerging.
The price of AAA video games, currently at $70 for next-gen titles, is sustainable and likely to remain, despite some controversy. The cost to produce these games continues to rise, and the risk involved in their development is increasing. Historically, game prices have not kept up with inflation as other industries have. The upcoming release of highly anticipated games like GTA VI is expected to continue the trend of massive sales, despite the possibility of quality concerns. The gaming industry is financially precarious, and companies charge what they believe they can to make a profit. There is no historical precedent for game prices decreasing significantly. However, there is also a growing trend towards more varied pricing, with some smaller games costing less than $70. Ultimately, the price of games is a complex issue influenced by production costs, market demand, and consumer expectations.
A new era in gaming with groundbreaking releases and advancements in technology: Groundbreaking releases like GTA 6 and Starfield, advancements in technology, particularly in generative AI, and the success of live service games are shaping a new era in gaming with immersive single-player campaigns and expansive online worlds.
The gaming industry is at an inflection point, and the upcoming releases, such as GTA 6 and Starfield, are expected to be groundbreaking experiences that will shape the future of gaming. The size and scope of these games, coupled with the advancements in technology, particularly in the area of generative AI, are poised to create a new era in gaming. CD Projekt Red's experience with Cyberpunk 2077 and the success of live service games demonstrate the potential for long-term engagement and revenue streams. These games will not only offer immersive single-player campaigns but also expansive online worlds, setting a new standard for what AAA games can be. The potential for open-world exploration in games like GTA 7, set in New York City, and the integration of AI and generative tech in Starfield, are just a few examples of the exciting possibilities on the horizon. The future of gaming is looking bigger and better than ever before.
Exploring the Future of Game Asset Creation with Genotype AI: Genotype AI is revolutionizing game asset creation for major studios, raising ethical questions with its large-scale production capabilities. Listen to 'The Besties' podcast for more insights.
Genotype AI is not about creating games with a single button press, but rather about generating assets for major studios on a large scale. This technology, which may raise ethical questions, will allow for unprecedented levels of production. The speakers also mentioned their podcast, "The Besties," and encouraged listeners to reach out to them through email or a phone number provided. The discussion touched on the documentary "art beats in lyrics," which showcases the growth of a humble art show into a cultural phenomenon and follows its founders and curator as they prepare for its 20th anniversary tour. The speakers signed off by expressing their enjoyment of the conversation and promising to return when GTA 7 is released. The VergeCast is a weekly podcast produced by The Verge and is available on Hulu, with a spinoff podcast, "The Resties," also available every other week. The show is on hiatus for Thanksgiving but will return with more news and content.
![Zack Fuss – Breaking Down the Food Ecosystem – [Invest Like the Best, EP.208]](https://www.podcastworld.io/podcast-images/invest-like-the-best-with-patrick-o-shaughnessy-3pmywn1q.webp)