Comment by Schiendelman
4 hours ago
I got my start at a game studio in 2001, after they were bought by Microsoft (and their game went from Mac to Xbox, if you get my drift). They're "big" now, but they regularly lay off large portions of their staff, because game development is boom and bust.
I don't think what you say in your first paragraph follows. Are you really, really interested in learning more about why, with an open mind?
Absolutely! Happy to learn from an industry veteran; hard to argue with that pedigree (part of why I like HN). I figured you might have been, but wanted to push back a little because I think it is important.
Here is my impression. 2001 feels like it was still within a golden era of game development; "AAA" games of that time would have been made by smaller studios still, and budgets could be very large, but not catastrophically so. The industry was still expanding. Post-GFC, once graphics scaled, demands seemed to scale, and costs blew out. Games had to reduce risk as a consequence, become more consolidated, more live-service. But the model was never sustainable at that scale. The tech improved so that costs for basic games went down, but big-budget AAA live service costs went to the moon. Volatility skyrocketed, leading to rapid hiring-firing phases. Now it is at its most extreme and the AAA side of the industry is in crisis. Demands for long-term support could be the straw that breaks the camel's back, but it always seems like that back was going to break eventually anyway. What I hope is happening is that talent is falling into the hands of smaller publishers, but that might not be true. What I do think is that the nature of development may need to change so that studios are able to facilitate these requirements while remaining profitable. Some have shown it can be done, anyway.
That's my impression from a semi-outsider perspective. Happy to be corrected though.