Shawn Layden emphasizes the need for patience within the games industry
Tencent advisor and former PlayStation head Shawn Layden has expressed concern over the gaming industry's dwindling patience amid extensive layoffs.
Layden's remarks were made on the inaugural episode of GI Sprint, a series focused on making game development more economical and efficient. The full episode will be available later today.
The industry is grappling with slow growth and rising costs, leading to tens of thousands of layoffs. According to Layden, this has made companies less willing to invest in new and innovative ideas.
"It's really disheartening to see small studios with great potential creating new gaming experiences, only to be abandoned because they didn't generate large profits immediately," Layden said.
He pointed out that these studios seldom face severe losses, yet their projects are often scrapped in favor of more predictable, financially safe options like established AAA titles, sequels, and clones.
Layden believes that these new ideas could eventually revive the industry, particularly the AAA console segment, rather than relying on existing franchises.
"Many people around the world aren’t that interested in games like Grand Theft Auto and Call of Duty anymore," Layden remarked. "These games were hits among gamers, but rehashing similar experiences won't attract new players."
He emphasized the importance of innovation and bringing out new types of games to capture a more diverse audience. "If someone doesn’t like first-person shooters or RPGs, introduce them to something different, like a rhythm action game focused on music and vibrant colors. How do we continue to reach new people in the interactive entertainment world?"
"We went through this time of artificial growth during the pandemic, and I would have expected more companies to recognize that it was a limited-time party"
Layden also highlighted the need for companies to show patience when nurturing new ideas and reacting to market changes, especially considering the temporary growth seen during the pandemic.
"During the pandemic, we saw artificial growth, and I thought more companies would realize it was temporary," he mentioned. "Make the most of the moment, but don't overinvest expecting continuous 20% growth. Yet companies got caught up in the excitement and made big investments."
He noted the inherent risk in such decisions, saying, "It's human nature to jump on a lucky streak, but this industry's impatience is problematic. Projects here don't get completed in just six months."
According to Layden, smaller studios bear the brunt of this impatience. These studios, often acquired with promises of creative freedom, later find themselves forced to cut back due to financial pressures from their parent companies.
"They say they value creativity and want studios to achieve their goals. But once financial issues arise, they ask everyone to cut costs," Layden explained. "Small studios wonder why they should suffer because larger companies made costly acquisitions. They become sacrificial lambs to balance the books."
"It's disingenuous to promise autonomy when financial exigencies lead to potential closures," Layden concluded.
