GamesFormer Blizzard president says the “gaming downturn” is “a little bit overstated” and companies just wanted to “cut back” after the pandemicWhen you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.
GamesFormer Blizzard president says the “gaming downturn” is “a little bit overstated” and companies just wanted to “cut back” after the pandemicWhen you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.
When you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.
(Image credit: Blizzard)
Former Blizzard president and CEO Mike Morhaime says the gaming industry’s “downturn” in recent years has been “overstated,” likening the situation to a correction in a post-pandemic world.
Morhaime left Blizzard in 2019 and started his own game company, Dreamhaven, in 2020. Its debut project, the tabletop-inspired fantasy RPGSunderfolk, was just revealed.
In an interview with Bloomberg Live (timestamped here), Morhaime was asked to comment on the gaming industry’s “tough climate,” particularly from the perspective of a new studio with a debut project.
“We don’t have any games on the market, we don’t have any customers yet, so we haven’t experienced a downturn ourselves,” he said. “I would say the gaming downturn even is a little bit overstated, because when you look at the gaming industry in general, it actually is still growing. More people are playing games than ever before.
“What you had is, going through the pandemic, people didn’t have a lot to do, and so they turned to the streaming platforms and they turned to games,” said Morhaime. “And it was a huge increase in usage. And a lot of companies saw that and they thought that was the new trend and that was just going to continue, and so there was a lot of investment. And when that didn’t continue, I think probably the finance department said ‘Oh, wait a minute, margins and everything.’ And so they wanted to sort of cut back to the trend line.”
The downturn being referenced here is of course the relentless downsizing of the gaming industry, manifesting in thousands of redundancies acrossMicrosoft,Sony,Riot,EA,Take-Two,Bungie, Twitch,Humble Games, and many more. Morhaime’s idea that we’re seeing a post-Covid correction isn’t new, and likely is accurate to a degree, but it also may not tell the whole story. Bloomberg pointed out that the “oversaturation” of the market as another factor, and Morhaime agreed that “the amount of competition is higher” and referenced a stat he’d seen that “15,000 games are released each year on Steam.” If anything, that number will likely go up next year.
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The complete picture is probably too broad and nuanced for me to adequately paint in a news bite, but in addition to post-pandemic correction and market saturation, industry experts would likely also point to increasing game development costs and large-scale acquisitions leading to restructuring as additional factors in the industry’s current volatility.
At least we have theseupcoming indie gamesto look forward to.
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GAME REVIEWSMOVIE REVIEWSTV REVIEWS
1Nemesis review: “A magical sense of tension”
1Nemesis review: “A magical sense of tension”
1
Nemesis review: “A magical sense of tension”
2Arcs review: “A whole lot of game in a small package”
2Arcs review: “A whole lot of game in a small package”
2
Arcs review: “A whole lot of game in a small package”
3Path of Exile 2 review: “A stellar start to a thrilling and brutal dark adventure”
3Path of Exile 2 review: “A stellar start to a thrilling and brutal dark adventure”
3
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4Indiana Jones and the Great Circle review: “The best adventure Indy has embarked on in over 30 years”
4Indiana Jones and the Great Circle review: “The best adventure Indy has embarked on in over 30 years”
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Indiana Jones and the Great Circle review: “The best adventure Indy has embarked on in over 30 years”
5Marvel Rivals review: “So preoccupied with trying to be like Overwatch that it forgets to play to its own strengths”
5Marvel Rivals review: “So preoccupied with trying to be like Overwatch that it forgets to play to its own strengths”
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1Sonic the Hedgehog 3 review: “Keanu Reeves as Shadow is wasted whilst Jim Carrey steals the show”
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1
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2Mufasa: The Lion King review – “It’s no Hakuna Matata but this Disney origin story is a class above the 2019 movie”
2Mufasa: The Lion King review – “It’s no Hakuna Matata but this Disney origin story is a class above the 2019 movie”
2
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3Kraven the Hunter review: “The insistence on an R-rating helps save this, with a decent helping of bloodthirsty action”
3Kraven the Hunter review: “The insistence on an R-rating helps save this, with a decent helping of bloodthirsty action”
3
Kraven the Hunter review: “The insistence on an R-rating helps save this, with a decent helping of bloodthirsty action”
4The Lord of the Rings: The War of the Rohirrim review – “An uninspired expansion of the most iconic screen take on Tolkien”
4The Lord of the Rings: The War of the Rohirrim review – “An uninspired expansion of the most iconic screen take on Tolkien”
4
The Lord of the Rings: The War of the Rohirrim review – “An uninspired expansion of the most iconic screen take on Tolkien”
5Nightbitch review: “Amy Adams' disappointing dark comedy is all bark and no bite”
5Nightbitch review: “Amy Adams' disappointing dark comedy is all bark and no bite”
5
Nightbitch review: “Amy Adams' disappointing dark comedy is all bark and no bite”
1Squid Game season 2 review: “Secures its place as one of the best shows on television right now”
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1
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2Doctor Who 2024 Christmas special review: “Ncuti Gatwa is as magnetic as ever in this delightful festive treat”
2Doctor Who 2024 Christmas special review: “Ncuti Gatwa is as magnetic as ever in this delightful festive treat”
2
Doctor Who 2024 Christmas special review: “Ncuti Gatwa is as magnetic as ever in this delightful festive treat”
3Secret Level review: “An uneven experience with serious highlights that ultimately make up for the misses”
3Secret Level review: “An uneven experience with serious highlights that ultimately make up for the misses”
3
Secret Level review: “An uneven experience with serious highlights that ultimately make up for the misses”
4Skeleton Crew review: “Perfectly captures the vibes of classic Star Wars with a swashbuckling twist”
4Skeleton Crew review: “Perfectly captures the vibes of classic Star Wars with a swashbuckling twist”
4
Skeleton Crew review: “Perfectly captures the vibes of classic Star Wars with a swashbuckling twist”
5Creature Commandos review: “James Gunn’s heartwarming, R-rated tale about super-monsters proves that the DCU is in good hands”
5Creature Commandos review: “James Gunn’s heartwarming, R-rated tale about super-monsters proves that the DCU is in good hands”
5
Creature Commandos review: “James Gunn’s heartwarming, R-rated tale about super-monsters proves that the DCU is in good hands”