The AAA Bubble Is Finally Bursting

The "AAA bubble" has been inflating for a long time, and after watching this year's Game Awards, I think it might finally be bursting.

If you like what I do, please consider supporting me on Patreon! You'll gain instant access to the official Arlo Discord server, behind-the-scenes updates on unannounced projects, and other stuff too!

This video was edited by the wondrous Kane!

"Reloaded Installer #11" by LHS.

[ArloStuff]

One thing I wish I mentioned was that another reason so many people are being laid off is the current state of our economy. Companies are trying to "trim the fat" wherever they can. However I wouldn't be surprised if layoffs and closures would be happening anyway. The AAA industry is course correcting hard at the moment.

[Spatu]

To think that when a Christmas Carol was written, a single rich man laying off a single employee close to Christmas was considered so exceptionally evil that he needed three ghosts to haunt him, and now here in the present game companies just lay off thousands of workers like it’s nothing

[plusisnot]

I remember during the game awards thinking, "Oh wow this trailer is really long." It was a different game.

[staffzx]

Cookie Monster's got a point. For a near-four hour long show, the whole ceremony should really be called "The Game Trailers and Upcoming Projects" featuring game awards

[RachelRoseMitchell]

watching neil newbon get cut off so quickly while we later had to sit through that one guy going 'shut up' for ages was a kick in the guts

[DonutSteel]

Indie devs doing their own thing regardless of AAA nosediving is super comforting

[Jess-]

The big problem in the triple-A industry is that companies, in a bid to appease shareholders, are prioritizing short-term profit over long-term sustainability. Given the choice between a million dollars now or a billion dollars in a year, they'd choose the million dollars now because it makes their charts look nice, and gives them something to say to shareholders. This, consequentially, also means they're unwilling to try something new, as they are terrified of seeing red for even a single quarter.

[Glasswatt]

Lethal company outselling COD is a fantastic example

[StylusShade]

The worst part is... the CEOs won't even feel the effects. They'll just lump the consequences of their own greedy actions onto their employees and walk away with the money they don't even deserve.

[hosvet_animation]

THANK YOU for phrasing it from a AAA perspective and not, "Games are dying." Like you said, indie games can be made from a bedroom by someone who doesn't care if it doesn't make money, games are fine.

[forTehMemes]

The bigger problem with the game awards is the presentation of it. Instead of focusing on one category at a time with announcements in between them they speedrun the awards then go multiple announcements at once. That shouldn’t be the case. I think with all the criticism this awards show has gotten hopefully we see a change next year

[RocketDoesStuff]

I love how Arlo can provide serious commentary on the game industry while also making taco metaphors. Never change

[rtrspctr]

I think events like the game awards are important, it shows us how cringe the industry actually is

[redlethal]

As an environment artist who graduated right at the end of the pandemic, there have been very few job openings and thousands of experienced devs who have been laid off competing for them. It has been a heartbreaking realizing that my odds aren't much better than winning the lottery. Its really frustrating since the industry's big build up was happening while I was studying, so me and my classmates all thought we had a future there. And all the people who managed to make it into the industry, just to get laid off the next year must be having a rough time as well. Certainly not ideal.

[SonNeoKaku]

I feel so bad for the developers who have to work 10+ hours a day on a product everybody knows will flop only to get laid off later due to poor sales. Crunch is no joke😔

It's great to see you doing opinion pieces again, though, they're definitely necessary in today's climate!

[Draylin]

The thing that gets me the most is not all the high-end businessmen are blind to what's happening. This has happened many times in multiple other markets. There's even been cases of a big CEOs encouraging this so that they can squeeze more out of the company before retiring or even worse, jumping to another company to do it all over again.

[Miccat]

This is why, over time, I've come to further appreciate the games made by smaller developers that actually care about video games as a form of art. The business side of gaming can be so ugly sometimes.

[boomstickYT]

This industry needs AAA studios to be humbled. I'm glad it's bursting.

[SnowyTasha]

My favorite part about live service games is that publishers present them as "endless fun" but in reality they launch with so few things to do that people get burned out almost immediately. It's gotten to the point where announcing your game as GaaS is an easy way to kill off interest; look at what happened to Babylon's Fall, for example. Tons and tons of hype until it was announced to be a live service game, and then it was shut down after less than a year with a player amount you can count on one hand. (Platinum somehow didn't get the hint btw)

That infographic by Ubisoft about live service games being easy, guaranteed profits with maximum player retention continues to be evergreen.

[drewpatterson]

As someone who is literally graduating with a degree in game design this week watching the industry fall apart is heartbreaking.