The surge of layoffs in the games industry over the past two years indicates an ongoing identity crisis within the industry. While the industry itself is not at risk of crashing, companies are being compelled to adapt to the evolving market in ways that were previously unexplored. Two prevailing strategies include relying on established intellectual properties or taking a risk by launching a live-service game. However, many big players have struggled to divert enough attention from established titles to sustain their live-service games successfully.
The recent layoffs at Bungie serve as a poignant example of the challenges faced. The studio, known for Destiny 2, recently cut 220 jobs post the release of its well-received expansion The Final Shape. This highlights that even a popular live-service game may not guarantee financial stability.
High-risk, Low Reward
It is commonplace for major publishers in the games industry to follow current trends, with live-service games being the latest hot pursuit. These games differ from traditional titles by maintaining a committed audience and generating consistent revenue over an extended period. While this model appears lucrative on paper, the reality is that even successful live-service games face challenges similar to the broader industry trends.
PlayStation’s acquisition of Bungie and its flagship title Destiny 2 signaled strong confidence in the live-service model. However, the subsequent layoffs at Bungie despite the success of The Final Shape expansion paint a different picture. The arduous development process for new content in these games often requires increased resources and time while yielding diminishing returns.
Even juggernauts like Fortnite have not been immune to market shifts, as evidenced by Epic Games’ workforce reduction following financial challenges. The highly competitive nature of the live-service landscape means that success is not guaranteed, posing significant risks for developers and publishers alike.
The allure of creating a successful live-service game may be losing its shine as industry players realize the ongoing challenges and uncertainties involved. With a saturated market and intense competition, the idea of a one-size-fits-all solution to profitability seems increasingly far-fetched. The narrative of Destiny 2 serves as a cautionary tale, underscoring the complexities and risks associated with live-service game development.
