The CEO of Hasbro believes the video game sector needs to adopt a new perspective

According to Hasbro's CEO, Chris Cocks, the video game sector needs to take a fresh perspective to advance. In an interview with The Verge, Cocks discussed the industry's current state, noting that although game development is expanding, it's no longer experiencing rapid growth as it did in the past, implying a change in how games are now produced.

Cocks highlighted the escalating costs associated with content creation. He explained that developing a top-tier video game now requires substantial resources, equating to thousands of man-years. Despite a growing audience, the market is not expanding exponentially, while the costs increase faster than the industry’s pricing power can handle, requiring companies to rethink their strategies. Cocks suggested exploring talent in regions like Southeast Asia, China, or Eastern Europe, alongside teams that understand different markets.

He also acknowledged artificial intelligence, mentioning that while many gamers might not appreciate AI in its current form, future innovations could enhance gaming experiences. This approach requires balancing input costs with outputs to ensure a return on investment, as there is a notable risk of games not becoming successful.

Discussing revenue sources in gaming, Cocks pointed out that the approach varies by publisher and brand. For Hasbro, this includes leveraging strong brands like Magic: The Gathering Arena, engaging in lucrative digital licensing, and selectively investing in publishing to build consumer relationships. He noted that Hasbro prefers traditional business models over the complexities of battle passes or free-to-play models, focusing on delivering substantial content for a set price, encouraging sequels purchases.

Regarding the future of Hasbro, Cocks expressed optimism about upcoming releases, hinting at impressive video game projects on the horizon.