Development Costs
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Saber Interactive has "no real development in North America any more"
Saber Interactive's Chief Creative Officer Tim Willits stated that the company no longer has significant game development operations in North America, with development now spread across 15 global studios. He emphasized the need for smart location choices in game development and criticized wasteful spending on large-scale projects, citing SnowRunner and Warhammer 40,000: Space Marine 2 as examples of cost-effective successes.
Ustwo Games to consider hiring more contractors to reduce development costs
Ustwo Games CEO Maria Sayans stated the studio plans to reduce development costs by increasing reliance on contractors rather than full-time employees. This shift is part of a move towards a PC-first strategy, aiming for smaller budgets compared to previous titles like Monument Valley 3. Sayans also suggested launching games at higher prices with later discounts to ensure studio sustainability.
How a surge in memory prices will affect the game industry
A surge in demand for DRAM and NAND memory, driven by AI infrastructure expansion, is significantly increasing prices for components used in gaming hardware and development. This trend is expected to squeeze hardware margins for consoles like the PlayStation 5 and Nintendo Switch, potentially leading to price adjustments for subscriptions and peripherals. PC gamers may delay upgrades, while developers face rising server costs, necessitating smarter infrastructure strategies.