Former Santa Monica Studio Screenwriter Alana Pierce shared some views on the gaming industry, and the situation is not optimistic.
In her latest video, former Santa Monica studio screenwriter Alana Pierce, based on data she obtained in discussions with investors, provides a disappointing but insightful analysis of the current status of the gaming industry, highlighting some systemic issues that cannot be ignored.She dissects the complex economic, technological and demographic factors that lead to massive layoffs, studio closures, and stagnation of growth.
According to Pierce, the gaming industry has been deeply tied to the stock market's expectations of exponential growth, which is no longer possible in reality.Many monetization models that once promoted industry profitability, such as free games, battle passes, and micro-transactions for "whale players" (high-consumption players), have reached growth bottlenecks.She pointed out that the market has been saturated and the freshness that once inspired investors' enthusiasm has gradually faded.
In addition, there is a more surprising factor: population trends.Pierce pointed out that the growth rate of global birth rates is no longer enough to maintain the influx of new consumers that tech giants expect."Our population is no longer enough," she said. She believes that the industry promotes smartphone apps and cloud gaming to developing countries is not so much for improving access, but to appease investors.Microsoft's Xbox cloud service plan is a direct response to this issue.These services are not aimed at “core players” but are aimed at opening up new markets that have not yet been developed.
Pierce also warned that "black hole-level" games like Fortnite, Call of Duty and Minecraft are monopolizing players' attention in a way that cannibalize the rest of the industry.These games that now compete with social media for users’ duration are reshaping consumers’ habits and often leaving smaller games and studios without audiences.
However, there is still a silver lining.Pierce mentioned independent private studios, such as Larion Studios’ Baldur Gate 3, and War Horse Studios’ Heaven: Save 2, which are examples of games that have succeeded without the pressure of investors’ expectations.She urges game enthusiasts to play and support games they like and want to continue to see, especially single player games.