Phil Spencer attended the GDC 2024 developer conference, where he gave an interview to Polygon. In particular, the top executive spoke about what is happening now in the gaming industry.
Spencer cited growing budgets as one of the biggest problems. Games have become more expensive, take several years to produce, and teams can consist of hundreds or even thousands of people. Modern AAA titles cost hundreds of millions of dollars, but their value hasn’t increased that much, so companies have to sell millions of copies to recoup their costs.
As a result, many publishers do not invest in risky projects, but prefer to invest in more reliable and predictable games. “Am I willing to take on a new IP address or a new type of game if the revenue risk is so high? I think it limits creativity in an industry I don’t like. Creativity is the cornerstone of what we need to be in games.”Spencer said.
These problems caused mass layoffs – only Microsoft, after purchasing Activision Blizzard King, announced the dismissal of almost two thousand employees.
As a solution, Spencer suggests moving away from exclusive games and releasing games on third-party platforms. Microsoft recently ported several titles to PS5 and Nintendo Switch to attract more players. The manager also wants the titles to be available even on mobile devices.
We talked about the most important announcements of GDC 2024 here.
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Source: VG Times
Christina Moncayo is a contributing writer for “Social Bites”. Her focus is on the gaming industry and she provides in-depth coverage of the latest news and trends in the world of gaming.