Sorry but the problem is that the major studios started chasing trends and visual fidelity in an unsustainable way. Anyone working in games has seen and said this.
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How many trend chasing cancelled projects have there been since the start of COVID? Do you think shipping a MOBA/Battle Royale/Whatever 6-10+ years after the genre has hit and it's 500lb gorilla is well established will actually mean you make a mark?
The race to make the infinite game that keeps pulling people back and monetize every interaction is what's killing the projects at big studios. Execs want infinite profit margins and they think games can give them that.
Honestly it must be so embarrassing to be a CEO. Believing in infinite growth is like an adult still believing in the tooth fairy. Good grief, I can't believe these people are somehow running everything.
But that's where we went wrong. We put the money people in charge, not the creatives. When creatives were in charge we got exciting, original, weird stuff that we just don't see today because now it's gotta be your yearly COD injection. The treadmill of incrememntal content churns.
So no, the industry isn't dying or dead. Just like single player games. Or arena shooters. Or anything else that makes a juicy headline. It's changing because it has to. It's finally reached the point of collapse after ill-advised, unsustainable practices took their toll.
But the people who makes games are sttill here. We're still fighting to make interesting experiences and tell new stories. That isn't going away just because teh C-suite doesn't like their profit margins.
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