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Microsoft - Xbox |OT| - View Post

Ryuu96 on 01 May 2025
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Necessary Watching.

Hey.

This is an outstanding synopsis of what's going on.

Alanah absolutely nails the issues, drivers and what's next.

Must watch, imo.

[image or embed]

— Mat Piscatella (@matpiscatella.bsky.social) 30 April 2025 at 21:23

Parris: "Alanah nails it and more folks need to start paying attention, the gaming industry is not doing great" — Bluesky

She has been speaking to a lot of investors, industry experts, etc.

  • Drop after COVID, a lot of investors projected continued growth.
  • Growth flattened, missed projections, shareholders don't get returns.
  • People pull out when profits aren't profitable enough.
  • Stock market loves live service games due to potential revenue.
  • Stagnation is seen as a tremendous failure.
  • Games are declining now in a way not proportional with surrounding industries.
  • Market is considered "mature" according to stock brokers - Little room for growth.
  • Less gamers % wise today than before, average weekly playtime is up, it's the casuals who have been lost.
  • Competition now includes TikTok, videogames aren't just competing with videogames.
  • Too much entertainment to consume, only so many hours in the day.
  • TiKTok is up by 35m hours, that's only one app.
  • World spends 12bn hours on social media apps in one day.
  • Games industry is losing the fight against social media apps like TikTok.
  • Netflix, TikTok, Xbox, PlayStation, etc. All competing with each other.
  • Funding is down 77% for the videogame industry.
  • Money being funnelled into stuff like AI instead, clients being told to pull money out of gaming and instead into AI.
  • Indies have also significantly hurt by this, there is no more funding for indie games either, if they are receiving money it's often exploitative deals. Many indie developers are considering getting bank loans over publishing deals because publishers are shitty right now.
  • People funding videogames don't care about videogames and will hop to the next industry.
  • Investors only care about extreme growth.
  • Gaming is significantly underperforming on the stock market and only got lucky during COVID.
  • Gaming has ran out of fancy gimmicks.
  • Not enough new gamers.
  • Alanah thinks Xbox's "This is an Xbox" campaign makes a ton of sense, it's about the stock market. They're trying to get more people playing videogames, it's in line with the current reality of the state of the games industry.
  • Blackhole game monopolies eating the industry up.

I do recommend watching it though rather than just reading my bullet points, Lol.

Last edited by Ryuu96 - on 01 May 2025