We designed Kylan from the ground up to disrupt the traditional game development production model, who according to Phil Spencer is now a perfect storm for financial risk. Alexander Rehm summarize well Phil's thoughts on the current status quo, and the drastic mentality change required: "break free from outdated assumptions about how games are priced and sold". 🐲
The game industry is at a crossroads, according to Phil Spencer, CEO of Gaming at Microsoft. In a recent interview with Polygon at GDC 2024, Spencer discussed the challenges facing developers and publishers, including: 🤑 Skyrocketing Budgets: Gone are the days of simple budgeting based on sales goals and unit prices. Today's AAA games can cost a staggering $300 million to develop, with large teams and lengthy production cycles. 📊 Shifting Business Models: The traditional model of selling full-priced games at launch is fading. Games are now sold across multiple storefronts, often discounted quickly, and sometimes even included in subscription services on day one. 👨👩👧👦 Diversifying Player Base: Reaching new audiences is crucial as some traditional console gamers have moved on. These factors create a perfect storm for financial risk, according to the interview. The high cost of development clashes with the new realities of game sales, making it difficult to recoup investments. Spencer proposes a two-pronged approach to help mitigate this: 🎮 Moving Beyond Exclusivity: He suggests abandoning the traditional focus on exclusive titles and exploring ways to reach new customers regardless of platform. ♻ Adapting to Change: The industry needs to adapt to the changing financial landscape and break free from outdated assumptions about how games are priced and sold. Interesting interview: https://lnkd.in/eFFRvkCA