December 31st 2024.
As we approach the end of the year, many are wondering if Sony and Microsoft will finally get their acts together in 2025. The past couple of years have been rough for the video game industry, with Nintendo and other Japanese publishers being the only ones to consistently perform well. Meanwhile, in the West, it's been one disaster after another. Despite new games being released regularly, behind the scenes, it's clear that the industry lacks direction and leadership, and there's a lack of shame for the failures that have occurred.
This isn't a new issue, as we saw similar problems in last year's review. Unfortunately, very little has changed in terms of the quality of stewardship from Sony, Microsoft, and other Western publishers. In fact, this year saw even more layoffs and no signs of remorse from those responsible. It's not surprising, as they have yet to take responsibility for their failures. They failed to anticipate the increasing costs of game development and were too greedy to see that blindly following the trend of live service games was a recipe for disaster.
However, there is a glimmer of hope amidst all the chaos. While the truth about what has been happening behind closed doors at Sony and Microsoft may not come out for a while, there have been reports of internal conflicts within both companies. Microsoft is torn between going multi-platform or not, while Sony is struggling with the decision of whether to focus on live service games or stick with single-player titles. These issues have evolved throughout the year, and the question of Xbox exclusivity has become even more pressing. Many fans fear that Microsoft is slowly becoming a third-party publisher and losing interest in their own consoles. With conflicting messages from Phil Spencer and his team, it's becoming increasingly difficult to take their statements seriously. The recent "This is an Xbox" campaign seems to indicate that consoles are no longer a top priority for the company.
It's hard to say if this is a good move, considering the limitations of video game streaming at the moment. It's unclear if Microsoft is ignoring the problem or if they have a plan to overcome it. With so much confusion surrounding their multi-platform strategies, it's unlikely that their hardware plans will be revealed in a straightforward manner.
Sony's masterplan is also a mystery, especially after the embarrassing failure of Concord. While there are hints that they may be moving away from live service games, their statements are ambiguous. It's also unclear if the new CEOs appointed this year were in favor of or against the shift towards single-player titles. Despite this, Sony did announce new single-player games and no more live service titles this year. Together with comments from other major publishers, there's reason to hope that they have abandoned their pursuit of the next Fortnite.
Another source of hope is the upcoming releases of the Nintendo Switch 2 and Grand Theft Auto 6. Although not officially confirmed, it's expected that these highly anticipated games will be released in 2025. Their prominence in the industry will undoubtedly make them hot topics and attract mainstream attention. This is especially important, given recent statistics showing that people are playing fewer new games and only half of PlayStation owners have upgraded to the PlayStation 5. The market seems to be shifting towards older and more hardcore gamers, yet publishers continue to focus on games that they are least likely to enjoy.
Former PlayStation America boss Shawn Layden has been vocal about the industry's issues, and he's not wrong when he says that rising costs will result in even less diversity and originality in games. However, his suggestion to make cheaper and shorter games will likely be ignored. It's clear that publishers are aware of the changes happening in the industry, but it's uncertain if they truly understand how to adapt.
There's a growing disconnect between what publishers are producing in terms of hardware and software and what their customers actually want. It's concerning that they either don't realize or simply don't care. The lack of direction and excitement in gaming over the past few years has been disheartening and dangerous. However, there are reasons to believe that 2025 will be a turning point. Perhaps the last two years will be seen as an anomaly, and the industry will make a comeback. But if things don't change soon, the industry may never recover from this downward spiral.
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