The COVID-19 pandemic in 2020 significantly impacted the video game industry. In response, many developed countries injected substantial sums into their economies, with a significant portion flowing to corporations and special interest groups.
Matthew Ball's in-depth analysis of the gaming industry (a comprehensive 224-slide presentation) provides valuable insights. A key finding highlights a surge in venture capital funding between the summers of 2020 and 2022, exceeding all prior years combined. This unprecedented level of investment likely surpasses the total funding received by the gaming industry over the past two decades.
This influx of capital undoubtedly came with certain conditions, and their influence is arguably evident in current game releases. While critically acclaimed, titles like Starfield, Star Wars Outlaws, Dragon Age: The Veilguard, Banishers: Ghosts of New Eden, Forespoken and potentially Assassin's Creed Shadows have experienced (or will experience) underwhelming sales.
This lack of commercial success can be attributed, in part, to a cultural backlash against certain industry trends. Despite their forgiving nature, even the core demographic of middle-aged gamers with disposable income has its limits. The current market response suggests a significant disconnect between developer ambitions driven by mountains of VC and player expectations.
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