This will be another controversial thread, but we need to start seeing the reality of the real world.
The Console industry has become stagnated. No, this isn't a thread about consoles are dying or won't exist anymore. This is a post of what we are constantly seeing every year, every generation. Layoffs, closures, changes and yet people still act Suprise when it happens. It does not matter where you are on the sales chain, highest or lowest, if you aren't growing and increasing the dollar value of your brand, its considered failing, and this is why we see these things happen.
These are not home brew brands that just want to make games for profit and accept whatever they make by years end, these are corporations that want to make more and more and more and more, year by year by year by year. You get what I am saying here. They aren't your friends.
The reality is we live in a corporate world, these gaming businesses are run by shareholders, investors and suits. They demand more return for their money, yearly. Now before we all start jumping on the hate bandwagon on these suits, lets understand one thing before making fools of ourselves. Without the shareholders and investors, we simply won't have the company you like or the games you want. Companies don't function well without them.
Let's dumb it down for some. When an investor invests $1 into a company/project, they want $2 return. When they invest $1million, they want to see $2million return etc. People, want to know why Sony and Microsoft are continuing to move IPs out to other platforms, like we have seen with Xbox and PC and now with some 1st party games going to PS5, and how we are seeing Sony move more games to PC and possibly Xbox in the future. This is because of many reasons.
1) The console Industry isn't big enough for all companies to strive and is stagnated. It's not growing. Meaning, only thing these companies can do is match what they did last generation and with budgets increasing within the AAA industry, makes it even harder. This is why we are seeing more attempts of multiplatform games, Digital media, MTs, Online etc. They can only steal from each others customer userbase, they can't bring in new people to gaming within the console walls.
2) Shareholders aren't making enough coin back, no one invests only to break even. When you break even, it's a loss, because money wasted for little to no return, could have been spent in other industries to increase value. Time is money and investments are long term projects. This hurts shareholders when there is no growth within the brands they have stocks in.
3) Games take too long to make and costs are too big. Companies that release 1 game every 5 years, have to cross their fingers and toes, hoping its successful because if it undersells, it hurts ALOT and they have to wait another 5 years to release a game that could still fail. This is why we are seeing more and more games more Multiplatform and more AA games. They are easier to make, cost less, and the most popular games out their right now are games like Palworld.
I can go on and on with examples, but we need to start understanding how the industry operates. It's never about selling more than the competition, it's about selling more than your previous records. Industries are run by graphs, not your feelings. If the graphs are pointing up, then necessary actions are taking to get the arrow to pointing upward. This is why we constantly see layoffs and closures.
Here are some examples if you disagree with what I have written.
Example 1: Sony's PS5 was the fastest selling console at launch, it's on track to match the PS4 sales wise. Yet why are they cutting jobs, closing studios, and bringing games to PC? Because it's about improving their dollar, not matching what they achieved last gen. The only way Sony can grow is to expand outside the console walls. Hence the PC ports. They wouldn't do it if they are way ahead of targets. Unlike Nintendo, they have thrashed their last console, the WiiU. However, the Switch 2 has a giant target on its back now because it needs to do better than the Switch One, otherwise we will see Nintendo take similar action to Sony and MS.
Example 2: Why is MS bringing games to PS5? Let's use Rare as an example. They haven't released a new game since Sea of Thieves back in 2018, Rares only income comes from SoTs. MS is most likely bringing SoTs to PS5, is to boost player counts again and to help Rare make money to again please the shareholders. Otherwise, MS will be forced to cut jobs and maybe worse, close the studio.
Example 3: Xbox and PS are now 3rd party PC companies. They are all bringing their games to PC, if not now, it will eventually happen. They see the growth and success from games they cross over and with the success of games like Sea of Thieves and Helldivars 2, especially Sony won't be missing these opportunities much longer, much like what MS started doing in the XB1 era. It's a matter of time.
So out of all this, the question needs to be asked. Do you rather see your favorite companies bite the dust and close down, or rather see your favorite brand strive by making as much money as they can by going multiplatform? Exclusives are only good for the hardware sales but it's not good for the software.
If these companies dont grow and expand, we will continue to see price rises with future generations to make up the difference.
Last edited by Azzanation - on 29 February 2024
