PC game development surges in Steam Deck handheld era — But don't count Xbox and PlayStation out

[Windows Central]

GDC survey results provide a look into gaming industry layoffs, generative AI usage, Steam Deck impact, and more.

PC game development surges in Steam Deck handheld era — But don't count Xbox and PlayStation out : Read more

 

[fjtorres5591]

Younger developers being more worried about generative software tracks.

First of all, there is the narrative that the software will lead to layoffs; well, most companies doing staff horizontal staff reductions go by LIFO-last in, firxt out.
Second, the software is most safely used for non-mission critical grunt work..which is typically entry level duty.
Third older employees tend to have a track record and connections they can count on to minimize their risk. Unless the record isn't great, in which case it isn't the software that is displacing them.

Finally, there is the matter of the big layoffs on the narrative side. I'm not going there but it also tracks with ongoing issues associated with game underperformance.

All I can say is a lot of younger employees in all industries seem unaware of the classic mantra of the business world: "Do nothing that might embarrass the boss."

Not every thought that comes to mind needs to go on social media.

 

[Lurking_Lurker_Lurks]

Interesting results. They paint a very different picture than gamers and game journalists echo from with their more "outsiders looking in" perspective.

To add too about studio closures, the mention of Tango Game Works implies they were shutdown. Ultimately Microsoft announced their intent to do so, but before the studio closed found a buyer in the form of another publisher. There was also an interview shortly before where they spoke about always exploring this option. I say this to add another reason of speculation for why so many studio closures: simple logistics. Tango Game Works was Microsoft's only studio in the far east. It was also Zenimax's (Bethesda Game Studios) only studio in the far east. It has always made managing it and collaboration between other owned studios difficult. Only Microsoft can say how much of an impact on their decision this was, but if they wanted to just shut it down they could have. Also not a shutdown, but there's the case of Toys4Bob going independent.

Despite comments online, Xbox has the most third party game support it has ever had this generation. They still need to do a lot of work with big name publishers that had traditionally skipped Xbox, butt hey are really managing to invite in new developers, indies, and some of those companies that traditionally skipped them. Despite the negative push back for game pass from some vocal sources online, it isn't surprising that it is a little more preferred than plus. What is surprising is how low both are. I can only assume that refers to day one launch consideration, and not launching on either service further down the line after release. For Xbox I think if they can really entice developers to their Xbox launcher on PC and make development between console, cloud, and PC as seamless as possible than they'll really future proof themselves.

This also shows that on the developer side, as well as the consumer side, gaming is growing more on PC than console. Consoles certainly aren't out of the game (they'll likely always be important to the industry), but they need to acknowledge and address more that they aren't getting any more important in the industry. Be that some time of push to bring new gamers to console platforms instead of keeping the market mostly stagnant or a multiplatform strategy to not rely on console sales too much. I do hope that the growth of PC gaming and even cloud will hopefully bring an influx of new gamers. That's what we really need for a healthy industry as gamers become increasingly stuck on live service titles and game development becomes increasingly more expensive. More gamers will offer better opportunities in the industry to spread costs and take chances with different types of games. An extreme example, but I saw somewhere that South of Midnight has low interest, and I can imagine because the very audience it is celebrating and telling a story about has traditionally not been represented in gaming or marketed to much at all. Getting into gaming for the first time can be a little more daunting than people realize with consoles themselves not really managing to appeal to new gamers. If handheld PCs help bring in first time gamers that'd be amazing.

 

[fjtorres5591]

Interesting results. They paint a very different picture than gamers and game journalists echo from with their more "outsiders looking in" perspective.

To add too about studio closures, the mention of Tango Game Works implies they were shutdown. Ultimately Microsoft announced their intent to do so, but before the studio closed found a buyer in the form of another publisher. There was also an interview shortly before where they spoke about always exploring this option. I say this to add another reason of speculation for why so many studio closures: simple logistics. Tango Game Works was Microsoft's only studio in the far east. It was also Zenimax's (Bethesda Game Studios) only studio in the far east. It has always made managing it and collaboration between other owned studios difficult. Only Microsoft can say how much of an impact on their decision this was, but if they wanted to just shut it down they could have. Also not a shutdown, but there's the case of Toys4Bob going independent.

Despite comments online, Xbox has the most third party game support it has ever had this generation. They still need to do a lot of work with big name publishers that had traditionally skipped Xbox, butt hey are really managing to invite in new developers, indies, and some of those companies that traditionally skipped them. Despite the negative push back for game pass from some vocal sources online, it isn't surprising that it is a little more preferred than plus. What is surprising is how low both are. I can only assume that refers to day one launch consideration, and not launching on either service further down the line after release. For Xbox I think if they can really entice developers to their Xbox launcher on PC and make development between console, cloud, and PC as seamless as possible than they'll really future proof themselves.

This also shows that on the developer side, as well as the consumer side, gaming is growing more on PC than console. Consoles certainly aren't out of the game (they'll likely always be important to the industry), but they need to acknowledge and address more that they aren't getting any more important in the industry. Be that some time of push to bring new gamers to console platforms instead of keeping the market mostly stagnant or a multiplatform strategy to not rely on console sales too much. I do hope that the growth of PC gaming and even cloud will hopefully bring an influx of new gamers. That's what we really need for a healthy industry as gamers become increasingly stuck on live service titles and game development becomes increasingly more expensive. More gamers will offer better opportunities in the industry to spread costs and take chances with different types of games. An extreme example, but I saw somewhere that South of Midnight has low interest, and I can imagine because the very audience it is celebrating and telling a story about has traditionally not been represented in gaming or marketed to much at all. Getting into gaming for the first time can be a little more daunting than people realize with consoles themselves not really managing to appeal to new gamers. If handheld PCs help bring in first time gamers that'd be amazing.

One thing ignored about tech industry layoffs is that some staff reductions are performance based. It's not often publicly acknowledged that many companies routinely rate employee performance on a yearly basis and when it's time to reduce staff the first to go are the lowest rated. MS one such round this year. SpaceX cut the lowest 10% back in 2019. More often they cut without explaining to allow the ones cut loose a better chance to land elsewhere. But if the company's PR is at risk they'll say it openly.

And sometimes entire units are cut when their output is unsatisfactory.
Much is made about TOYS FOR BOB and TANGO GAME WORKS even when they weren't technically fired, but there was also the Project Odyssey team at Blizzard that was totally scrapped after 5 years of working on a game without getting anywhere and proposing to restart from scratch.

The other reason cited in the survey was corporate reorganization and not only do companies reorg often, but mergers are a guaranteed harbinger of layoffs. XBOX is still digesting its big acquisitions but doing it slowly. The various units (Bethesda, King, Blizzard, Activision, XGS and their component studios are currently allowed a large degree of autonomy by all reports but if their output falls short or growth stalls, consolidation and redundancies will follow.

Corporate cultures vary but all businesses have the same underlying mandate; make as much money as possible or else. And they all judge by cold equations.

As pointed out here elsewhere today, Sony is rapidly approaching the border of "or-else". Heads have already rolled and more are at risk.

These are not good times, no matter how politicians might try to spin things.