Can the gaming industry adapt to a frozen market?
With the console and gaming PC market at a standstill, gaming is facing one of its largest crises in a decade. Momentum the medium took for granted — new console generations, affordable hardware upgrades, and a growing player base — has hit a wall. The ripple effects could be devastating, leading to more layoffs and shuttered studios.
But before we can look ahead, we need to understand how we got here. Gradual shifts in demand over the last decade set the stage, and economic supply shocks locked them in place.
The first signs of a major shakeup appeared around 2018 with Fortnite’s massive success. The free to play “game as a service” (GAAS) drew massive player growth and revenues that rapidly outpaced full priced games from similar genres. Other GAAS like Roblox and Minecraft followed similar trajectories around the same period.
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