Out of the loop

10994 readers

3 users here now

A community that helps people stay up to date with things going on.

founded 1 year ago

MODERATORS

zachimusprime44@lemmy.world

Why is the video game industry in crisis? (sh.itjust.works)

submitted 6 months ago by Zeppo@sh.itjust.works to c/outoftheloop@lemmy.world

32 comments fedilink hide all child comments

I keep hearing about layoffs, studios being closed and how the industry is troubled. Are companies losing money and sales are poor, or is it the same as Google and other companies laying off people just to pump their stock price and make money despite profitability?

you are viewing a single comment's thread
view the rest of the comments

[–] Bbbbbbbbbbb@lemmy.world 109 points 6 months ago (3 children)

The video game industry is not in crisis, big game publishers are because their goals of infinite growth and profit are in jeopardy, therefore they make more and more unsustainable moves, cuts and cuts and.....more cuts. Indie devs are more and more often breaking into the spotlight because AAA game publishers are failing the industry

[–] Hamartiogonic@sopuli.xyz 2 points 6 months ago

I think it is also related to the economy as a whole. While the pandemic was dragging on and on, inflation got much higher and central banks responded by increasing the interest rates. As a result, investors no longer had access to infinite free money.

Turns out, there are lots of companies that relied on constant funding instead of actual revenue. Those companies are undergoing some major changes at the moment.

load more comments (2 replies)