Industry Trends
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European studio expenditure on external talent rises 63% in 2025
European game studios significantly increased spending on external talent by 63% in 2025, outpacing global growth. This rise in freelancer expenditure, coupled with a 24% increase in freelance collaborations, highlights a shift towards a two-tier team model. Studios face challenges in sourcing qualified specialists, while freelancers grapple with income stability and finding projects, with many concerned about AI's impact on job security and workload.
Massively Overthinking: Should MMORPG development be approached like a ‘grail quest’?
This article discusses whether approaching MMORPG development as a 'grail quest' is a worthwhile strategy, featuring insights from various writers and readers. While some express optimism about Riot Games' ambitious approach to its in-development MMO, others raise concerns about the challenges and potential for disappointment inherent in such large-scale projects.
Deep in FromSoftware's sicko arc, Elden Ring and Dark Souls boss Hidetaka Miyazaki says "you can't make anything that's as fun" just by following the same old rules
FromSoftware director Hidetaka Miyazaki believes that adhering strictly to established rules in game development leads to stale and uninteresting experiences. He emphasizes that focusing on what the developers find interesting has been key to the studio's success across titles like Elden Ring and Dark Souls, allowing them to create unique and fun games.
2026 is the best year ever for video games and GTA 6 isn’t even out yet - Reader's Feature
A reader argues that 2026 will be the best year for video games, despite industry challenges, citing a packed release schedule including titles like Grand Theft Auto 6 and Godzilla: Destroy All Monsters Melee Remastered. The author highlights numerous anticipated games across various genres and platforms, suggesting a peak in gaming quality.
Inside Tencent's long-term strategy: live service, AI tools, and evergreen titles
Tencent's long-term strategy for its global games division centers on building sustainable communities through live service titles and evergreen IPs, alongside investing in high-quality talent and synergistic partnerships. The company is also embracing AI as a tool to enhance developer efficiency and iteration, rather than replace human roles, while navigating challenges in global integration and outsourcing.
Skyrim and Fallout made Bethesda devs feel "safe" from mass layoffs before Xbox ended decades-long careers in…
Bethesda Game Studios developers, known for franchises like Skyrim and Fallout, felt secure from mass layoffs at Xbox, but were instead blindsided by job cuts affecting long-term employees. An employee described the experience as devastating, with meetings lasting only two minutes to end decades-long careers. The loss of institutional knowledge is a significant concern for future game quality.
Asha Sharma gives a positive response about the rising cost of tech
Xbox Executive Vice President and CEO Asha Sharma discussed the rising cost of gaming hardware and the impact of Artificial Intelligence during an interview at Gamescom. Sharma acknowledged challenges like component shortages and the need for innovation in affordability, while the article criticizes the perceived dismissal of concerns over GPU and CPU price hikes driven by AI demand.
"The Half-Life 2 of AI" will change people's minds about AI, Saber exec says after CEO claims he'd…
Saber Interactive's Chief Creative Officer Tim Willits believes a breakthrough game, akin to Half-Life 2's impact, will eventually change public perception of generative AI in gaming. While the company is experimenting with AI in its game Rideshare Stimulator, Willits acknowledges the industry is still figuring out its place and consumer acceptance, contrasting it with the established utility of platforms like Steam. Despite industry backlash and legal concerns, Willits remains optimistic about AI's potential.
"The things that we based our assumptions on have changed fundamentally": Arrowhead CEO Shams Jorjani on the games industry's rapid transformation
Arrowhead Game Studios CEO Shams Jorjani believes the games industry is undergoing a fundamental transformation, rendering old business playbooks obsolete. Factors like the rise of Asian developers, long development cycles, and the impact of AI are creating unpredictability. Jorjani suggests that early validation and open development, similar to indie practices, are crucial for future success, especially for games targeting specific player niches.
"It's been a difficult time for console hardware," says Unity CEO, but costs will come down and console games will continue to thrive: "We'll see that with GTA"
Unity Technologies CEO Matthew Bromberg acknowledges current cost pressures on console hardware, citing RAM shortages and trade wars as temporary factors. He remains optimistic about the future of console gaming, predicting a resurgence of engaging titles and a eventual decrease in hardware costs, with Grand Theft Auto serving as an example of continued console entertainment success.
The people of video games on what gives them cause for hope
Industry professionals share their reasons for optimism despite current challenges, highlighting the resilience of game developers, the innovation within the indie scene, the growing cultural impact of games, and the enduring passion of players. They emphasize community support, creative freedom, and the potential for new ideas to emerge from difficult times, suggesting a bright future for the medium.
Gamescom 2026 is "proof that the game industry is working towards a better tomorrow"
Despite widespread layoffs and studio closures in the game industry during 2026, Gamescom Director Tim Endres and Stefan Heikhaus, Head of Gamescom at Game, express optimism. They believe the event's full capacity and focus on networking, fan engagement, and future technologies demonstrate the industry's resilience and drive towards a better tomorrow.
Take-Two's former AI guy is, in a twist, skeptical about AI now: 'The guy should be selling you the gold if…
A former AI lead for Take-Two Interactive, Dicken, expresses skepticism about the current hype surrounding generative AI in game development. He argues that the technology's practical application is often overstated, citing issues with authorial intent, dialogue trees, and debatable productivity gains. Dicken also warns of potential vendor lock-in and price hikes, comparing the situation to Unity's controversial pricing changes.
Console Game Development Is Moving to Unreal Engine, and Halo Just Proved It
Halo Studios has transitioned from its proprietary Slipspace engine to Unreal Engine 5 for Halo: Campaign Evolved, marking a significant shift in console game development. This move aims to reduce internal engine maintenance costs, allowing more resources for game creation and faster content delivery to platforms like PlayStation, Xbox, and PC.
Gamescom Dev speaker survey identifies potential impacts of AI on team structure and productivity
A survey of Gamescom Dev speakers indicates that artificial intelligence is expected to be the most significant industry trend for the next three years, with 83% anticipating an impact on team structure or productivity. While 36% believe AI will change roles rather than reduce team sizes, 33% expect smaller teams. Economic uncertainty, market saturation, and discoverability were identified as major challenges.
id Software dev says mass layoffs like Microsoft's are weakening the games industry, because developers 'don't have the incentive to care anymore'
id Software lead services programmer Chris Hayes argues that mass layoffs, like those seen at Microsoft's Xbox division, are detrimental to the games industry. He believes these actions weaken the industry by removing developers' incentive to care about their craft and the long-term quality of games, ultimately leading to mediocre products and a less healthy creative environment.
Ex Escape From Tarkov dev believes his new game Rush is Real can cut through a risk-averse industry with an "original idea"
Former Escape From Tarkov developer Jean Tyulegenov is working on a new game called Rush is Real with Nomion Games, aiming to introduce an original mechanic to a risk-averse industry. Tyulegenov believes that despite industry challenges like rising costs and AI competition, there are opportunities to engage players with fresh ideas and leverage AI as a development tool. He also highlighted the indie game Gris as an example of artistic achievement in game development.
Nintendo reports a full 38.5% of its sales are still physical in the wake of Sony abandoning discs
Nintendo reported that 38.5% of its sales in the last quarter were physical, despite the industry trend towards digital. This figure includes Nintendo Switch Online subscriptions and DLC, but excludes hardware bundles. Sony plans to cease physical disc production in 2028, a move that has been met with player backlash, though some publishers like Capcom are not overly concerned.
The Soulslike genre has grown stale after Elden Ring, and only FromSoftware can take it to strange new places
The article argues that the Soulslike genre has become stagnant since Elden Ring, with many developers iterating on FromSoftware's formula without significant innovation. It suggests that only FromSoftware itself can revitalize the genre by taking it in new, unexpected directions, potentially by shifting focus from open-world expansiveness to deeper mechanics or by embracing a more distinct aesthetic like anime.
What’s Really Happening With Halo: Campaign Evolved?
Halo: Campaign Evolved, a remake utilizing Unreal Engine 5, has launched to mixed reception despite generally positive critic scores. While it performed moderately on consoles, particularly Xbox via Game Pass, its PC launch on Steam saw significantly lower concurrent player counts compared to previous Halo titles. The article analyzes this lukewarm reception, attributing it to potential shifts in Xbox leadership and strategy, and questions the franchise's future direction.
