this post was submitted on 03 Aug 2026
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Depending on what you actually count as a “video game” the industry is now generating somewhere between 200 and 350 billion dollars a year in annual revenue, making it by far the largest entertainment sector in the world regardless of whatever your exact definitions may be.
More people are playing video games than ever before, they are playing them for longer, and (the not so secret reality is that) video game companies have gotten a lot better at getting money out of them while they are.
Over what should have been the best half decade in the history of the industry, the overall market is down by as much as 30% from its peak, in the same time that the broader market has more than doubled. Sooo how is it possible that even with record sales, record new revenue streams, record numbers of new players, and record new opportunities to monetize that new audience… video game companies have still managed to screw this up so badly?

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[–] yermaw@sh.itjust.works 1 points 54 minutes ago

Lots of little reasons, but I dont think any reason is as big as "more people than ever are a ballhair away from homelessness"

[–] Batmorous@lemmy.world 11 points 5 hours ago

More and more people are saying the solution:

We need more better alternatives to what we currently have

More worker-owned unionized game studios that make spiritual successor games to what the big publishers make (To gradually replace them. AC is only thing keeping Ubisoft afloat. A spiritual successor that is better than it with mod support would make Ubisoft tumble fully)

More worker-owned companies that champion physical media, same for worker-owned companies that champion digital ownership for all industries, even videogames

A few more videogame hardware components, and hardware manufacturers to compete with each other. To fight for our money and actually have to innovate

Those are what will help game industry. Oh and supporting Indies, and AA games of course.

Everyone let's keeping building those new options up and supporting any good alternatives that already exist too.

"Different parts of industry head honchos need to be replaced by way better ones"

[–] dan69@lemmy.world 1 points 3 hours ago

Pay to look good…

[–] ms_lane@lemmy.world 13 points 9 hours ago (1 children)

The same as every other industry?

No one else gets articles about how it's hard on them though, most journalists actively support the end of manufacturing and insult those who work it.

[–] Batmorous@lemmy.world 0 points 5 hours ago* (last edited 5 hours ago)

Surely there must be some independent journalists that are voicing loud how it is needed

[–] Jumi@lemmy.world 16 points 11 hours ago

Leading roles were filled with PR idiots and marketing morons instead of people who actually care about games. Also, they are public

[–] Sanctus@anarchist.nexus 77 points 16 hours ago (4 children)

What's happening to American studios, the same guys have been working at Nintendo for the past 30 years. American culture doesnt care. The game shipped? Axe the developers, send the bonuses to the C Suite, and we'll all pop some champagne. Surprisingly, this destroys the regional industry.

[–] architect@thelemmy.club 1 points 2 hours ago (1 children)

Western. It’s western not America. It would be nice if you all figured that the fuck out soon.

[–] Sanctus@anarchist.nexus 1 points 1 hour ago

Me and you both, bub.

[–] NOT_RICK@lemmy.world 43 points 15 hours ago (1 children)

Not quite just American studios. Ubi isn’t American and they’re closing studios in Europe and Canada. Pretty sure Tencent has pulled back a lot of their funding across the industry as well. Nintendo and Capcom are definitely on very firm ground right now thanks to their longer term outlook and solid bets paying off though, I agree.

[–] Sanctus@anarchist.nexus 29 points 15 hours ago (2 children)

I guess its really just the American Culture that has spread. What I mean by that is the burn and turn thats so prevalent. Nintendo seems to want to keep their Japanese developers, while the traditional west treats them like they treat literally every worker they have. Like the ideas are somehow completely disconnected from the people who made them. Then they wonder why their shit stinks when its produced by a bunch of junior devs sleeping on cots away from their families.

it's true what they say, all y'all fuckups ain't made shit because america invents everything in your minds.

[–] lemmyseikai@lemmy.world 19 points 14 hours ago (2 children)

Japan has a standing culture on if it ain't broke don't fix it. Added to a generally slow turn around for cultural shifts (for good and bad), they tend to be okay-ish on the not getting sucked into the next enshittification phase.

They also are ass backwards on some stuff for the same reason, so win some and lose some.

Plus we must be on the worst timeline when we are praising Nintendo...

[–] BreakerSwitch@lemmy.world 2 points 2 hours ago* (last edited 2 hours ago)

While I'm not strictly arguing with your points here, I do feel like a lot of this thread is ignoring a lot of Japanese gaming companies, especially Sony, who have been playing the same game as microsoft, just on a smaller scale. Squeenix have also been obsessively chasing live service games, making dozens and then shutting them all down, most of them surviving 3 years or less. Meanwhile konami shut down their gaming development entirely (unless you include gambling games) not that long ago and have had 3rd party devs (like bloober team for silent hill 2) making anything involving their properties so they can back out anytime they want.

[–] Sanctus@anarchist.nexus 3 points 14 hours ago

I realize thats bad yeah, but average tenure in the US being like 5 years at most has me looking at places where people work for life and fit in feeling kinda left out. A lot of speculation there, I am 100% thinking like that because an axe is always over my head with private equity.

[–] rockSlayer@lemmy.blahaj.zone 20 points 14 hours ago

And people wonder why unionization is spreading so rapidly in the industry

[–] Kolanaki@pawb.social 8 points 15 hours ago (1 children)

Ubisoft isn't American and does the same shit.

[–] Sanctus@anarchist.nexus 9 points 15 hours ago (1 children)

They are honorary American, oof.

[–] Kolanaki@pawb.social 7 points 14 hours ago (1 children)
[–] eleijeep@piefed.social 1 points 6 hours ago

People in dog-houses I mean glass-houses and all that

[–] Fandangalo@lemmy.world 30 points 14 hours ago* (last edited 14 hours ago) (3 children)

14 yr game dev, worked on all platforms (mobile, web, console, Roblox/UGC)

This video undersells the scale of Roblox. I’m 37, and a lot of people my age don’t know that millions of people hop on Grow a Garden or whatever is hot there right now every weekend. Valve’s closest peak numbers are a scale less. That platform is going to define how a generation sees “video games.”

I would say the other point missing: China. China is doing exceedingly well at capturing market share over the last decade. While the west is struggling & self imploding, teams of hundreds of devs are working 996: 9 am to 9 pm, 6 days a week. It’s tough to compete vs that.

Finally, and I know people don’t want to hear it, but AI is a great tool to speed up game development, especially in the prototyping phase. Even in production, there’s a real risk mitigation benefit in what video games are NOT: they aren’t legal apps, they aren’t medical apps, they aren’t financial apps, at least in the ways that those apps have serious compliance hurdles, other considerations for what you develop. If a video game is poorly designed, no one’s health is at risk.

I think the benefit is, yes, video games are about to be democratized in a way that’s hard to describe. If you know enough about game design, you can stand up applications that took full teams weeks in a matter of days as a solo. We’re about to drown in a Cambrian explosion of games (if society doesn’t implode separately).

[–] Batmorous@lemmy.world 2 points 5 hours ago* (last edited 5 hours ago)

What are your thoughts on the competitors to Roblox? Especially that one web-based one that will get mobile apps soon. (Trying to remember the name of it)

[–] Saganaki@lemmy.zip 14 points 9 hours ago

25yr GameDev here. AI Prototype? Yes. Long-term code? Oh hell no. And this is me speaking as somebody that uses Opus 4.8 heavy all the time.

It speeds up dev time slightly. If you are finding that it speeds dev time significantly, you are 100% taking on tech debt (dare I say complete and utter spaghetti).

It generates code okay, but it does not make it anywhere near maintainable.

[–] VindictiveJudge@lemmy.world 22 points 10 hours ago

teams of hundreds of devs are working 996: 9 am to 9 pm, 6 days a week

And probably being about as productive as if they were working 9 to 5 four days a week. Exhaustion is really bad for productivity.

[–] FiniteBanjo@feddit.online 34 points 17 hours ago

Your links are all broken because they appeared to be copied and pasted without actually pasting the full unabreviated hyperlink.

Here's my take:

First, the Videogames made money based on number of plays, and the developers had to strike a balance between innovation, replayability, difficulty, and price then ship directly to arcades.

Then, the home console era took off, and competing consoles started signing exclusivity contracts with game developers in order to compete. Innovation was still a strong influence, but storylines and graphics became the major selling points. During this time, studios began consolidating as larger ones like EA, Activision, Tencent, etc all bought out smaller ones and dissolved them to move talent around to different flagship products.

Next, live service games proved incredibly profitable and hosting them became cheaper every year. Instead of monetizing a game once, developers could monetize them infinitely by simply adding microtransactions. During this time online distributors also became popular, giving rise to Steam and Epic Games stores to sell games purely digitally instead of via physical media. This has culminated in some distributors removing access to paid for games, as they were never truly purchased only leased.

Finally, major console companies started buying up or partnering with major studios, and then maximizing profitability which naturally means one thing: More Live Service Microtransactions, Less of Everything Else.

But Gamers aren't idiots. There is a gap in the market for content that we own, in physical form, with good story, and decent graphics. But there are no longer any professional studios left to make them. This has led to the term "Indie Studio" becoming broader and more successful, and the constant decline in the trust of major studios. Now, "AAA Studios" as they're referred to as, mostly sell towards children and people easily manipulated by social media feeds that they target to advertise on, but a new legislative landscape is slowly introducing obstacles for them to do that. It's plain to see that the current way of things is unsustainable and set to collapse.

[–] Tollana1234567@lemmy.today 2 points 10 hours ago* (last edited 10 hours ago)

they are laying of tons of gaming devs its going to get bad, and fresh out college will not be finding job(knew people that had to take jobs here just to be employed. its always cutting overheads/labor, record profits for the c-suites and ceo, rinse and repeat, until the company is a dead husk.

[–] ampersandrew@lemmy.world 9 points 17 hours ago* (last edited 5 hours ago) (1 children)

For a generalized channel from people who don't know gaming like we do, it's surprisingly spot on. Something that they might not know is a data point even worth quantifying is that in addition to hiring more developers, those developers are also, on average, spending more time making a single video game, whether it's live service or not. And contributing to that problem of not having enough time is that even the non-live-service games are longer than the equivalent game used to be 20 years ago.

I would push back on this point that even Mat Piscatella makes where if you're not Fortnite, League of Legends, Grand Theft Auto, Minecraft, or a handful of others, you're somehow "fighting for scraps"; there's the argument later in the video about what people want out of a multiplayer game or a social space; and then the question of "why wouldn't you just make a mobile game?". I don't think these are often the same audience. The thing in common between most mobile games and most console games is that they're made by people who have a very similar skill set, but their customers are often very different human beings. People on a Lemmy gaming community will probably play Grand Theft Auto, but they'll also probably a dozen other new games in the same year. Those dozen other games aren't fighting for GTA's scraps; they're just a subset of GTA's audience who don't intend to play it forever.

[–] slimerancher@lemmy.world 2 points 8 hours ago (1 children)

I don't have the data Mat has, but anecdotally, I agree with him. My kid wants to sometimes play a single player game if he watches me play it and likes it, but it will always be when his friends aren't online to play Fortnite with him. And it's not just him, it's all his friends and cousins and their friends and cousins. They play Fortnite / Roblox etc primarily, and occasionally, if no one is online to play that with them, they may take a look at something else.

[–] ampersandrew@lemmy.world 3 points 5 hours ago (1 children)

But that's your kid falling into that other bucket that primarily plays one of those games. It's a fool's errand to target that player rather the type who samples many video games on a regular basis, because your kid has already found more or less the only game he's interested in. Meanwhile, the kind of person who plays Resident Evil is far more likely to play a dozen other games in a given year. You're not getting "scraps" if that's your target customer.

[–] slimerancher@lemmy.world 1 points 4 hours ago (1 children)

Well, I am not sure how game companies define their target audience, but aren't these players part of the same "gamers" pie that all these companies want to get attention of? These kids would still be playing games if there was no Fortnite, but it's the live service game that is keeping them so engaged that they don't have time for much else.

Of course if they aren't even the target customers, then that discounts this whole argument.

[–] ampersandrew@lemmy.world 2 points 4 hours ago* (last edited 4 hours ago)

but aren’t these players part of the same “gamers” pie that all these companies want to get attention of?

I can't speak for Piscatella or how much he thinks about it that way, but it seems to be the perspective of this video, and one I would very much disagree with. The video acknowledges what the video game audience used to be 20 years ago. I'd argue that audience stuck around, while the growth that the industry experienced disproportionately went to people who "aren't gamers, but they just play this game". I don't remember exactly how the video put it, but we know who that person is, and it includes your kid. Your kid would still be playing games if there was no Fortnite, but how that demographic used to look (best we can scale it to yesteryear, as times have certainly changed) was just picking up this year's model of an old franchise, like moving from Halo to Halo 2 to Halo 3, a dynamic that still exists in Call of Duty and sports games for that same large bucket of players that might only play one game.

[–] mesamunefire@piefed.social 5 points 17 hours ago* (last edited 17 hours ago)

This is a video game essay on all things games this year. Youtube description has all the urls/research used in the video. I thought it was interesting.