I think it’s more that the megacorp business model is fundamentally incompatible with making good video games. Their only reliable competitive advantage is money, they can spend more on a single project. But if they spend so much, they can’t go as risky as indies go. A ton of indies publish shit games, it’s just that some are absolute gems.
Point is, AAA games can only match indies in originality if they are okay with tanking the IP and the studio just to make something original. But since they are megacorps, they will never be okay with that. The also can’t amortise the risk over a lot of small projects, because then they lose the ability to outspend indies and would have to compete with them directly.
The cycle of megacorps- this works in most industries with a lower barrier of entry.
First the industry begins as a bunch of small competing startups that build a shit ton of absolute trash. Eventually a few companies find the right formula and start to find some medicum of success. Innovation is rapid but quality is low.
Next the industry consolidates in a feeding frenzy of mergers and aqisitions. During this time innovation is high but demands for quality is also high. New startups are constant as the forming megacorps pay high prices to control innovation or suppress competition.
Then the consolidation reaches a peak. At this point innovation almost completely ceases as megacorps refuse to pay out any more. Quality rapidly decreases as the few remaining megacorps try to maximize profits. The entire industry turns to shit products and high prices.
The only thing that can save the industry from stagnation is government anti-trust action breaking up the megacorps into smaller competing companies like in the second stage.
They could go for more double A games. Still more budget than indies, not as risky or innovative, but not as big of an investment as AAA. Studios could work on new IPs in shorter cycles and smaller games, and eventually release big AAA sequels to the successful ones.
I think it’s more that the megacorp business model is fundamentally incompatible with making good video games. Their only reliable competitive advantage is money, they can spend more on a single project. But if they spend so much, they can’t go as risky as indies go. A ton of indies publish shit games, it’s just that some are absolute gems.
Point is, AAA games can only match indies in originality if they are okay with tanking the IP and the studio just to make something original. But since they are megacorps, they will never be okay with that. The also can’t amortise the risk over a lot of small projects, because then they lose the ability to outspend indies and would have to compete with them directly.
It’s like a sort of inverse economies of scale.
The cycle of megacorps- this works in most industries with a lower barrier of entry.
First the industry begins as a bunch of small competing startups that build a shit ton of absolute trash. Eventually a few companies find the right formula and start to find some medicum of success. Innovation is rapid but quality is low.
Next the industry consolidates in a feeding frenzy of mergers and aqisitions. During this time innovation is high but demands for quality is also high. New startups are constant as the forming megacorps pay high prices to control innovation or suppress competition.
Then the consolidation reaches a peak. At this point innovation almost completely ceases as megacorps refuse to pay out any more. Quality rapidly decreases as the few remaining megacorps try to maximize profits. The entire industry turns to shit products and high prices.
The only thing that can save the industry from stagnation is government anti-trust action breaking up the megacorps into smaller competing companies like in the second stage.
They could go for more double A games. Still more budget than indies, not as risky or innovative, but not as big of an investment as AAA. Studios could work on new IPs in shorter cycles and smaller games, and eventually release big AAA sequels to the successful ones.