It's interesting that the platform holders were really viewed as a place of security. It'll be interesting to see how things are affected going forward. Wonder how many companies will have second thoughts about tying themselves to big publishers and the platform holders in the next five years.
2024 may not be kind for game developers.
- Thread starter Silent_Buddha
- Start date
I was trying to find what that studio produced and since it's inception nothing was released.Ouch, even signing a contract to produce an exclusive for a platform holder won't necessarily protect a developer from going under anymore.
PlayStation-partnered studio from former Black Ops devs shuts down after saying its Sony collaboration would bring "complete financial security"
Deviation Games had yet to reveal its debut gamewww.gamesradar.com
Regards,
SB
They were working on their first game. The studio was only four years old.
That doesn't count as evidence things are rough though. Could be a badly run studio that wouldn't produce anything even in the 2010s. They were contracted to make Sony a game, didn't deliver anything after two years, one half of the founders left (to work for Sony directly), they shed 90% of their workforce and the execs hung around a year presumably looking for a publisher, or a strategy, and then went belly up when th4e investor money ran dry.
Their website is completely lacking in video game stuff - it's all high energy, good lifestyle workplace and nothing to do with making good games!
I don't think this story belongs here. Plenty of startups get nowhere and the story here isn't of a studio producing something valuable only to be unfairly dropped before they could complete it. Worst case, the studio was producing a valuable product but Sony poached Blundell and a bunch of the team. More realistically, these team-members wanted to leave and work for Sony, with the operations of the studio just no good - too many disagreements, too much team building and not enough game making, not enough progress - Blundell and a bunch of the team wanted out.
The only reason this is reported is because of the high profile of the founders and the fact Sony were the named investor. EG even called it a 'Sony Studio closure'.
Their website is completely lacking in video game stuff - it's all high energy, good lifestyle workplace and nothing to do with making good games!
I don't think this story belongs here. Plenty of startups get nowhere and the story here isn't of a studio producing something valuable only to be unfairly dropped before they could complete it. Worst case, the studio was producing a valuable product but Sony poached Blundell and a bunch of the team. More realistically, these team-members wanted to leave and work for Sony, with the operations of the studio just no good - too many disagreements, too much team building and not enough game making, not enough progress - Blundell and a bunch of the team wanted out.
The only reason this is reported is because of the high profile of the founders and the fact Sony were the named investor. EG even called it a 'Sony Studio closure'.
Games industry should be 'less cautious,' says maker of experimental game about exploring a swimming pool dimension
"I hope for a gaming industry that's less cautious and embraces boldness."
www.pcgamer.com
Johnny Awesome
Veteran
Probably true to a point.
There's a reason sequels exist. Gamers want them.
There's a reason sequels exist. Gamers want them.
Dragon Age creator says that if crunching is the only way to make AAA games, then AAA games should die.
www.gamesradar.com
Dragon Age creator says that if crunch is "the only way" to make massive games, "maybe the industry deserves to die"
However, he believes it "doesn't have to be that way"
www.gamesradar.com
Layoffs and AI sour annual Game Developers Conference: ‘The vibe is rancid’ | Games | The Guardian
GDC 2024 catered to the frustrated and those out of work, with cheaper tickets and a group screaming session
amp.theguardian.com
now even companies like Ubisoft, which are creating the so called NEO NPCs, aren't helping. Voice actors and actresses are more necessary than ever, no AI can match the voice of a human being expressing emotions, no matter what. Many great examples of that, say Amicia when someone breaks her shoulder, Shadow of the Tomb Raider etc etc etc etc etc etc etcLayoffs and AI sour annual Game Developers Conference: ‘The vibe is rancid’ | Games | The Guardian
GDC 2024 catered to the frustrated and those out of work, with cheaper tickets and a group screaming session
Johnny Awesome
Veteran
For now...
SEGA Sells Relic Entertainment, Cuts Another 240 Jobs in Europe
SEGA has sold Relic Entertainment, which will become an independently run studio. They are also cutting another 240 jobs across Europe.
wccftech.com
Relic Entertainment made one of my favourite ports to date, Age of Empires 1 Definitive Edition.SEGA Sells Relic Entertainment, Cuts Another 240 Jobs in Europe
SEGA has sold Relic Entertainment, which will become an independently run studio. They are also cutting another 240 jobs across Europe.
Yea would love to see MS hire them or buy them up for some RTS games
On Reddit, there's an article posted from PC Gamer about the 'gold rush' being over for indies in getting Epic/Gamepass deals.
www.pcgamer.com
However, I also wanted to point to a comment made by a developer in the comments that went to GDC:
"This is a common sentiment and lacks some nuances, it's being spread around a lot but data-points show otherwise.
At GDC I spoke to 30+ publishers and every single one was funding at a median funding amount of 4m USD. I work in the sector and out of 12 titles we pitched, every single one had 2-6 follow-up offers, ranging from 200k to 7m.
Most of the layoffs to hit publishers did not impact their revenue, but met expectations of shareholders + investors in their entities to show growth or profitability. It was the only lever they had on the back of COVID growth periods, and no one could temper expectations without getting fired or massive hits to share prices.
The de-investments being announced (and more to come) actually add money back to publishers to shore up gaps in catalogues; most of whom are faced with huge shortages for 2025-2026. Every professional analyst/expert I know in the business side of games is projecting a huge rush during Q3 (Gamescom) to sign big-ticket games to cover the next 2-3 years.
A bigger 'con' is at play. Layoffs pre-GDC meant that veteran AAA teams only had enough time to form indies and get paper prototypes ready; they're getting snapped up at huge discounts when the sentiment is 'there is no money' - some people in those articles in the publishing side I have personally confirmed are looking for games to fund.
The due-diligence required to get games signed has returned to the pre-COVID levels; a lot of developers talking about this topic are reflecting on the ease at which games got signed during the easy-money period, forgetting the processes necessary prior to that.
If we talk only personal experiences, our most significant deals between 5-18m got signed between November and March, at the 'worst' of the doom-gloom scenario.
I have a lot of hope for indies, both big and small, and I don't want them to get into the mindset that they're lucky to get any deal. It just takes a bit more work to de-risk projects."
It kind of backs up what I've been saying before - much of these layoffs and everything are not because the industry is in some dire straits, it's because companies are simply reacting badly to normalization after the Covid boom and dont want to let the good times go. It's greed, not some necessary balancing act.
'The gold rush is over:' Slay the Spire and Darkest Dungeon devs say that big Game Pass and Epic exclusive deals have dried up for indie devs
It's not easy to get funding for a new game right now.
However, I also wanted to point to a comment made by a developer in the comments that went to GDC:
"This is a common sentiment and lacks some nuances, it's being spread around a lot but data-points show otherwise.
At GDC I spoke to 30+ publishers and every single one was funding at a median funding amount of 4m USD. I work in the sector and out of 12 titles we pitched, every single one had 2-6 follow-up offers, ranging from 200k to 7m.
Most of the layoffs to hit publishers did not impact their revenue, but met expectations of shareholders + investors in their entities to show growth or profitability. It was the only lever they had on the back of COVID growth periods, and no one could temper expectations without getting fired or massive hits to share prices.
The de-investments being announced (and more to come) actually add money back to publishers to shore up gaps in catalogues; most of whom are faced with huge shortages for 2025-2026. Every professional analyst/expert I know in the business side of games is projecting a huge rush during Q3 (Gamescom) to sign big-ticket games to cover the next 2-3 years.
A bigger 'con' is at play. Layoffs pre-GDC meant that veteran AAA teams only had enough time to form indies and get paper prototypes ready; they're getting snapped up at huge discounts when the sentiment is 'there is no money' - some people in those articles in the publishing side I have personally confirmed are looking for games to fund.
The due-diligence required to get games signed has returned to the pre-COVID levels; a lot of developers talking about this topic are reflecting on the ease at which games got signed during the easy-money period, forgetting the processes necessary prior to that.
If we talk only personal experiences, our most significant deals between 5-18m got signed between November and March, at the 'worst' of the doom-gloom scenario.
I have a lot of hope for indies, both big and small, and I don't want them to get into the mindset that they're lucky to get any deal. It just takes a bit more work to de-risk projects."
It kind of backs up what I've been saying before - much of these layoffs and everything are not because the industry is in some dire straits, it's because companies are simply reacting badly to normalization after the Covid boom and dont want to let the good times go. It's greed, not some necessary balancing act.
Phil Spencer blames capitalism for games industry woes: 'I don't get [the] luxury of not having to run a profitable growing business'
Spencer said publicly traded companies have to show constant growth or else nobody will give them money.
Communism sounds like the perfect model, but ultimately it's not. Capitalism might be better for some, but it's the problem of the planet right now, so maybe we need something else.
Phil Spencer blames capitalism for games industry woes: 'I don't get [the] luxury of not having to run a profitable growing business'
Spencer said publicly traded companies have to show constant growth or else nobody will give them money.
Communism sounds like the perfect model, but ultimately it's not. Capitalism might be better for some, but it's the problem of the planet right now, so maybe we need something else.
What a dishonest headline. The writer is blaming capitalism. Phil Spencer is just saying they need to get the industry back to growth. The arguments for/against capitalism are for the religion/politics thread, but holy shit the framing of that headline is terrible.
Johnny Awesome
Veteran
It's not greed. The big publishers have an obligation to their shareholders to make as much money as possible. Sometimes that means layoffs happen, as regrettable as that is.
this is the original source of the news.
Phil Spencer on what the hell is happening in the games industry
"The implications have human impact. And we should all reflect on that and think about it"
www.polygon.com
A couple of quotes from that interview:
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this is the original source of the news.
Phil Spencer on what the hell is happening in the games industry
"The implications have human impact. And we should all reflect on that and think about it"
A couple of quotes from that interview:
This isn't helping with the framing of that headline. I'll help you out. "Capitalism" doesn't come out of Phil Spencer's mouth, but "growth" does. He talks of getting the industry back to growth to minimize the human cost, not switching economic systems. The pcgamer writer places the blame at capitalism, and the headline makes it sound like Phil Spencer did too. Again, I'm not going to get into an argument about capitalism in this thread, but the headline is completely dishonest.
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