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Those other industries are coming in and saying they want to learn how to do this, and leverage that stuff, create that stickiness and that engagement level, which will be necessary for the transformation of their own industries. We've been able to successfully grow massive communities that are loyal to whatever we're telling. "But it is also applicable in building communities and scaling up opportunities for other industries that absolutely need to learn from games. "It's important to remember that what we do as an industry is a suspension of disbelief that is layered in a technology, design and creativity," he tells us. Steamline CEO Alexander Fernandez says this highlights how non-games businesses are realising the power of video games and its technology in a post-pandemic world. Last year, the company teamed up with fashion brand Balenciaga to create a virtual experience to demonstrate its Fall 2021 line-up. The group is part-developer, part-services business, offering art, code, QA and localisation and technology to other studios, whilst also creating its own games.īut it believes the future for the video games industry is beyond entertainment. It's these big opportunities and challenges that has drawn Layden to Streamline Media. Again, the entrenched players are holding on to their market and trying to extract a little bit more value out of it. And not enough to open up doors for new talent to come in. "But even that, it doesn't match the rate of inflation over the last 20 years. But this doesn't solve the problem, Layden explains. Shortly after his Gamelab talk, certain games publishers raised the price of their video games for the first time in two generations. It seems to Layden that this is more than just making sure the games industry grows financially. "So this industry is ripe for disruption, and some of us better get on that." We've learned over time that mobile gaming isn't necessarily a gateway into console, but just a different thing for people to do at a different time of the day. But those are related but distinct categories. "Of course, if you add in mobile phones you get to hundreds of millions of players. But their cultural impact is 100x what gaming is" "Music on a revenue basis is probably one fifth of the games space.
It is an incredibly multi-cultural workforce, and that is where the future of breaking gaming into a wider audience beyond the 240 to 260 million. They speak 27 different languages throughout their studios and have people from 47 different countries. "I was interested in Streamline because it has spent almost the entire of its 20 years with a remote distributed development model. Over time, that leads to a crumbling of the games industry if we just keep talking to the same people and telling the same stories in the same way. That's bad for the industry and for fans. Favourites like my own, like Parappa and Vib-Ribbon, those things don't seem to get a chance to come out on stage. Right now, we are narrowing ourselves down into genres and sequels and certain types of games. But their cultural impact is 100x what gaming is. And again, we end up with this problem with diversity. It takes a lot of playing pieces off the table as they grow into these larger conglomerates. Consolidation is the enemy of diversity in some ways. "During that time we have also seen more consolidation. It's going to be very difficult for more than a handful of large players to compete in that space.
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So PS4 games were $100 to $150m, so it stands to reason that PS5 games - when they hit their stride - will be in excess of $200m.
He continues: "With each console generation, the cost of games goes up 2x. "We're just getting people in the gaming world to spend more money," Layden tells us in an interview following his appointment to Streamline Media Group's advisory board. The number of people who own consoles today is broadly the same as it was in the late 1990s, around 240 to 260 million people. At Gamelab last year, Shawn Layden grabbed headlines for calling out the spiralling costs of game development.Īlthough much was made of his suggestion that games should be smaller (or more expensive), his concerns are rooted in the reality that for all the revenue growth seen in the console space, audience growth remains elusive.
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