All ET's fault.
this post was submitted on 23 May 2026
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We're not having a video game crash, not anytime soon. Video Games are a multi-billion dollar industry.
The current crisis right now, as is with other industries, is crooked executives fucking with studios. And largely getting away with it.
No way in hell this is comparable to 1983. This is a terrible period of time though
On one hand, from what I understand, in the 1983 crash there was a real mood of video games being over, that the fad had passed. In North America, anyway. I don't think there's any risk of that happening today. On the other, the video game industry is a lot larger now, so there's a lot more shrinking that can happen without it completely destroying itself. So in that sense it may actually be bigger.
That said, I'm inclined to believe that by laying off all these people, big companies are just creating their own future competition, because there's no shortage of demand for video games. If anything there's a greater demand for games that aren't constrained by the arrogance of big company executives.
One of the reasons the 1983 crash was so harsh was because brick and mortar distribution and producing expensive cartridges made self-publishing and indie development much more difficult. Hell, the Commodore 64 never had any problems throughout the crash because games were distributed on tape and floppy disk, and hobbyists could easily create new games much cheaper than console counterparts.
I would argue we have the same echoes here. The winners will be the indie PC and mobile devs alongside digital distribution platforms like Steam (Valve) and GOG where anyone with talent and ambition can enter.
I feel so out of the loop. What crisis is hitting the industry? From my point of view things are going as usual. Is this about big publishers creating mediocre bullshit I don't pay attention to anyways?
So here’s a very simple boiled down summary of what’s been happening in the last ~15 years, and has gotten exponentially more extreme with every subsequent year:
Game doesn’t sell well = All the devs are laid off, CEO gets a new yacht.
Game sells really well = Most devs are laid off, CEO gets three yachts
There’s too many knock-on effects to list, but specifically in the videogames business: Quality of games goes down. Prices go up. Burnout in the industry goes up. Exploitation of foreign contractors goes up.
There’s a metric fuckton of environmental, economic, and societal damage being done as well but I’m not qualified enough to explain/express them. The effects of all this will be felt by out-of-the-loop-ers in the years and decades to come
This seems to be the case of software engineering industry in general, I'm hoping to get out of this field entirely in the next few years it's become a shit hole
That feels like the ugly norm for way more than 15 years. I'm surprised it's called a crisis just now.
The crisis is that the triple-A industry is starting to feel consumers loss of interest in them as indie devs continue to outshine them with every release
Also even if it was only 15 years I'm struggling to understand the "crisis now" part.
lots of growth during covid that could not be sustained => many, many layoffs to prop up earning statistics in the following years.
Maybe for microsoft