Is There a Future for the Video Game Industry?

Video games. It is a pastime I have enjoyed since I was five. But now, at the ripe old age of 39, I am beginning to wonder if the video game industry has a future, if it will crash like it did in 1983. The reasons for this are multifaceted.

Acquisitions

One of the first things I started to notice that worried me was the advent of studio acquisitions. While Nintendo is guilty of this to some degree, it has been mostly acquiring second-party companies. I am talking about Sony and Microsoft.

If we are talking about huge takeovers, we have to talk about Microsoft buying Bethesda and Activision Blizzard. These buyouts cost billions of dollars, with Microsoft placing all their bets on console exclusivity to combat Sony PlayStation’s sales dominance. However, this isn’t bearing fruit. The higher-ups at Microsoft seem to be taking a more timed exclusivity approach with their Xbox titles. Multiple games thought to be exclusive to Xbox made their way to PlayStation 5 and Nintendo Switch. Even Indiana Jones and the Great Circle is coming to PlayStation 5 after a small window of exclusivity, with this news garnering more applause than the game’s actual release date on PC and Xbox. It is clear Microsoft spent too much money acquiring its new studios, and now it is trying to recoup the costs by going multiplatform. What was the point of it all?

In 2022, Sony acquired Bungie, creators of the legendary Xbox franchise, Halo. This was particularly sad, as Bungie had tasted freedom before, severing itself from Microsoft, and its later publishing deal with Activision while working on the Destiny series. Sony also acquired Firewalk Studios back in 2021, teaming up to work on a AAA multiplayer IP. That IP turned out to be Concord, which went offline after a mere two weeks. In a crowded space that includes Overwatch, Concord had no chance of competing with players’ limited time with grindy shooters. Millions of dollars were wasted, though, and now I fear for Firewalk Studios.

Layoffs

As we have come to learn, large corporations buying smaller studios have not saved video game employees from massive layoffs. Microsoft closed four studios at once, including the beloved Arkane Austin and Tango Gameworks. Arkane Austin made multiple critically acclaimed titles, including Prey and Dishonored. Sadly, its most recent game, Redfall, fell short of expectations, so Microsoft decided to axe the entire company. What makes even less sense is the loss of Tango Gameworks. Its rhythm action game, Hi-Fi Rush, sold well and garnered rave reviews. But its multiple awards and its arrival on PlayStation 5 and Nintendo Switch weren’t enough to protect it from Microsoft’s spree of layoffs.

2024, in particular, is a nasty year for firings, already surpassing the total amount of 2023. It isn’t relegated to just Microsoft, either. 220 employees were let go from Bungie by Sony. Epic Games laid off over 800 workers, even though Fortnite makes an almost infinite amount of money. Insomniac, Naughty Dog, and Activision Blizzard all saw discharges, too, with so many hardworking people’s futures up in the air and with families to support. Whether your games were successes or failures, it didn’t matter, no one was safe. The calls for unionization have never been louder and more important.

Remakes and Remasters Galore

We are living in an age of too many remasters and remakes. Some I don’t mind, as remakes like Silent Hill 2 are updates of decades-old games that cannot be played on modern platforms. The same can be said for adventures like Paper Mario: The Thousand-Year Door and Luigi’s Mansion 2. However, Sony and PlayStation are taking the idea of a remake or remaster to ludicrous levels. Until Dawn received a remake even though the original title came out in 2015 and can still be played on a PlayStation 4 or PlayStation 5. Horizon Zero Dawn is getting a remaster later this month, and the original already gained an update to run at 60 FPS on a PlayStation 5. Thankfully, games like Horizon Zero Dawn, The Last of Us Part II, and Uncharted 4: A Thief’s End only cost ten bucks to upgrade if you own the PlayStation 4 originals. However, the resources associated with these updates can be better spent on new IPs or even remastering experiences that desperately need it. Bloodborne, anyone?

Dread – But With a Glimmer of Hope

After mentioning all the aforementioned issues with the video game industry, how can one not feel jaded and devoid of hope for the future? Executives never lose their jobs when games don’t make billions of dollars. They don’t even take pay cuts to stave off layoffs for their employees like the late Satoru Iwata did. Buyouts also stifle creativity. Activision Blizzard relegated developers like Vicarious Visions and Toys for Bob to only work on Call of Duty games, even though they created hits like Tony Hawk’s Pro Skater 1 + 2 and Crash Bandicoot 4: It’s About Time (thankfully, Toys for Bob went independent). The prevalence of remakes and remasters is leading to buyer’s remorse, as well. What good is owning a PlayStation 5 if it feels they are just remaking games that aren’t even that old? And with Microsoft pivoting to a console-less message for its Xbox division, Sony feels comfortable charging $700 for its PlayStation 5 Pro, even moving toward the death of physical media with its lack of a disc drive.

While the future looks grim, there are some rays of sunshine. PlayStation’s Astro Bot turned out to be an almost perfect video game. It is getting fresh content in the form of DLC, so its future is sound. Plus, it is a celebration of all things PlayStation. Perhaps Sony will look at the success of Astro Bot and contrast it with the failure of Concord, leading to new games in its beloved franchises. Both Spyro and Tony Hawk’s Pro Skater may be resurrected. Marvel and Capcom are together again. And Nintendo continues to enjoy immense success with the Nintendo Switch, seven years in. While we all eagerly await its successor, the company still has hits in the making coming soon. Mario & Luigi: Brothership looks stellar, Metroid Prime 4: Beyond is real, and The Legend of Zelda: Echoes of Wisdom came out of nowhere to a positive reception. Other corporations have to learn some hard lessons and stop firing all of their talent, but maybe if they do, things will turn out right in the end.