The year 2024 is expected to be marked by volatility in the video game industry, with both highly regarded and less successful games reinvigorating old licenses that have been dormant for over a decade. This resurgence will bring surprises and disappointments alike, along with controversies and titles that polarize players. Additionally, the influence of woke culture cannot be overlooked, regardless of individual preferences. In 2025, there will be a significant influx of games from what I refer to as “new Asia,” including China, South Korea, and Malaysia, signaling a transformation in both game offerings and production approaches. Recently, I had the chance to discuss this trend with Lybee Park, CEO of Pearl Abyss Europe, which is set to release “Crimson Desert,” one of the most anticipated games for 2025. This action-RPG boasts ambitious aspirations and scale that initially led many social media users to question its authenticity upon viewing gameplay images. However, developers from Pearl Abyss visited Paris during the Paris Games Week last month, where I spent two hours testing “Crimson Desert” and engaging in discussions with them about the state of Western video games and the emergence of these new Asian titles.
2024 is drawing to a close, and major game releases have already taken place by the time this article is being written, with only Indiana Jones yet to be released as a year-end addition. Additionally, the Game Awards have not been held at the time of publication, so it remains unclear which title will receive the prestigious Game of the Year (GOTY) award: Astro Bot, Final Fantasy XVI Rebirth, Metaphor Refantazio, Balatro, Elden Ring Shadow of the Erdtree, or Black Myth Wukong. Beyond the controversies surrounding these nominees, it is noteworthy that among the six selected games, only one originates from the West—Balatro, a card game developed by a Western studio—while the others are Asian titles, specifically Japanese and Chinese. There is widespread consensus that Stellar Blade, a game created by a Korean studio, should have been included instead of Balatro.
It is evident that the Western world is currently facing an unprecedented crisis in various sectors, including the video games industry. For two generations since the PS3 and Xbox 360 era, Western games have led our industry, setting trends in new ideas, ambitions, and production design. American and European developers have established what is now commonly referred to as AAA or even AAAA titles, particularly with Ubisoft’s past endeavors. However, after 15 years of pushing the boundaries of video game development, we have reached a technological ceiling, and for about 2-3 years, studios and publishers have struggled to turn a profit on these costly productions. As progress continues, publishers must invest heavily in creating these ambitious AAA titles; with budgets ranging from $200 to $700 million for some projects, they often surpass the budgets of major Hollywood blockbusters and find it difficult to recoup their investments.
Three weeks ago, Marc-Alexis Côté, the executive producer of the Assassin’s Creed franchise, stated during a podcast with XDS24 that development costs have significantly increased in recent years. Here is his exact statement:—(Note: The requested rewrite only pertains to the first paragraph provided and does not include the additional context or information beyond it.)
We are currently facing a complex and challenging economic situation, particularly within the video game industry. Rising costs and decreasing profits have been observed by all. Competition is extremely fierce. The cost of creating games has likely increased tenfold since the release of the first Assassin’s Creed compared to this year’s releases. The cost, complexity, and number of people involved in game development have probably also increased tenfold.
Marc-Alexis Côté is correct, and this observation extends beyond Ubisoft to encompass the entire gaming industry. Games such as GTA 5, Spider-Man 2, The Last of Us Part 2, the latest God of War, Star Wars Outlaws, and the most recent Assassin’s Creed have development costs ranging from $200 million to $300 million according to analysts. For Destiny, Activision spent a confirmed $500 million and was proud to announce such expenditure. Of course, costs can escalate even further for Red Dead Redemption 2, which reportedly cost $700 million to produce, although Rockstar Games operates uniquely with their own methods. It is rumored that the upcoming GTA 6 could have an even higher production budget of over $2 billion. However, Rockstar’s financial success, generating $1 billion in sales within 24 hours for Red Dead Redemption 2 alone, sets them apart from others—they are unmatched. With Red Dead Redemption 2 selling 60 million copies and offering an uncompromising gameplay experience and immersive world that demands full player engagement to appreciate their vision of the cowboy game, they indeed stand out uniquely.
Let us revisit the observations made by Marc-Alexis Côté regarding Western AAA games, which consistently require substantial resources. He notes, and I quote:—(Note: The requested rewrite only pertains to the initial paragraph provided, so the rest of the context is not included in this response.)
When discussing successful titles, particularly those in the AAA category, there are approximately 10 games per year that sell around 10 million copies, he said. The reason I mention the 10 million copy threshold is related to production costs, both ours and our competitors’. In our industry, any information leak means everyone’s data becomes public immediately. Generally, I believe that selling 10 million copies marks the profitability benchmark, with estimates fluctuating by about 2 million copies either way. However, only roughly 10 games each year exceed this mark.
The current era has made producing a AAA title a risky endeavor due to growing competition, more demanding players, and the additional factor of whether a game aligns with “woke” culture, which can now significantly impact its success. The situation has changed rapidly over the past two years, and it seems that studios and developers did not anticipate this when integrating their DEI initiatives. Today, there are significant concerns and some panic regarding these developments.
This is where the concept of “new Asia” comes into play. By “new Asia,” I am referring to Japan, South Korea, and in a few years, Malaysia. If you have been following my insights over time, you will know that for more than five years now, I have been warning about the rise of these three countries within the video game industry, predicting they will significantly alter our sector in the next 10-15 years. These nations are emerging across various industries, and gaming is no exception. Their ambition to dominate this field has roots that extend over two decades; China, South Korea, and Malaysia have been developing video games since then. When I discuss video games, it includes not just mobile or MMO titles but also those high-profile AAA releases as well. For nearly 20 years, Western and Japanese studios have relied on Chinese, South Korean, and Malaysian companies to handle a range of tasks, often the more routine ones rather than creative endeavors. This is an issue we will revisit…
The year 2025 is approaching, marking a period when numerous Chinese, Korean, and Malaysian productions are expected to emerge, often with the support of PlayStation. Shuhei Yoshida has been actively engaged in Asia for over six years, identifying new studios capable of developing games rapidly while maintaining quality on par with Western counterparts. For example, Black Myth Wukong underwent five years of development and incurred a cost of $70 million. This is not merely about salary levels but also about different working methodologies. Game Science initiated the project with 13 people for one year, expanded to around 20 individuals for two years, and eventually reached a team of 120 developers by 2023 when production concluded. Having 120 developers for a game like Black Myth Wukong is relatively modest compared to the resources typically required in Western AAA projects. Can we compare Western working methods with those employed in China, Japan, Korea, or Malaysia? For the average gamer, such distinctions do not matter since they ultimately purchase and enjoy finished games.
On this occasion, I had the opportunity to speak with Lybee Park, CEO of Pearl Abyss Europe, the studio preparing to release Crimson Desert, one of the most anticipated games of 2025, which has the potential to disrupt conventional Action/RPGs due to its ambitious goals. Ms. Park was in Paris for an interview but canceled all filmed interviews due to personal reasons. Despite this, she graciously answered my questions, which I will now share with you and detail.
In recent years, approximately four to five years ago, there has been a noticeable slowdown in Western game development. This period has seen fewer innovative ideas, excessively long production times, and disappointing or poor commercial results. How would you explain this trend?
Lybee Park: It is challenging to generalize the entire industry, but I will do my best to answer your question. In certain cases, it is true that the video game industry has experienced significant changes, with fewer innovative ideas emerging, longer production timelines, and many highly publicized releases failing to meet public expectations. This trend can be attributed to several key factors:—(Note: The requested rewrite did not include providing context or additional information beyond what was stated in the instruction, which only involved rewriting the given paragraph.)
The first challenge is the escalating market expectations. Over the past decade, both AAA and independent games have raised the bar significantly, setting high standards for innovation and quality. This has led to longer production times and increased pressure on developers to meet these elevated expectations. Consequently, some Western game studios have experienced a slowdown, characterized by fewer groundbreaking ideas, extended development periods, and disappointing or poorly received releases.
In 2024, the video game industry is expected to encounter turbulence due to returns of old licenses that have caused both surprises and disappointments. Additionally, ‘woke culture’ has influenced player reactions. For 2025, there is anticipation for a new wave of games from what is termed as “new Asia” (China, South Korea, Malaysia), which will likely alter industry proposals and production methods. Notable among these upcoming titles is “Crimson Desert” by Pearl Abyss, which has already generated skepticism due to its ambitious claims. The current year, 2024, is drawing to a close with several significant Western game releases, including the anticipated “Indiana Jones.” The Game Awards have yet to announce their Game of the Year (GOTY), but among the nominees, only one hails from the West, reflecting a growing consensus that Asian games are taking the lead. This text also highlights an unprecedented crisis in Western video game production where costs have surged dramatically over the past 15 years, leading to financial strain for studios and publishers. Even successful AAA titles now struggle to surpass the 10 million copies sold benchmark for profitability. Factors such as intense competition, high player expectations, and potential negative reactions to ‘woke’ content contribute to this precarious situation. In contrast, Eastern countries—Japan, South Korea, and soon Malaysia—are predicted to reshape the industry over the next decade with innovative approaches to game development, often at lower costs due to different working methodologies and salary expectations. An interview with Lybee Park of Pearl Abyss Europe reveals challenges within Western game studios, including escalating market expectations that lead to longer production cycles and fewer revolutionary ideas, contributing to a perceived slowdown in the sector.
The executive explains that the slowdown in Western game development can be attributed to several factors: 2024 is forecasted to be a volatile year for video games, with returning licenses generating both excitement and disappointment. The influence of ‘woke culture’ is also highlighted as a significant factor. For 2025, an influx of games from the “new Asia,” including China, South Korea, and Malaysia, is anticipated to reshape the industry due to their unique production methods and fresh ideas. A notable game expected in 2025 is “Crimson Desert” by Pearl Abyss, which has already attracted attention for its ambitious scale and polarized player opinions. The text also highlights a perceived crisis in Western video game development, citing escalating production costs and declining profits over the past 15 years. Games like “Assassin’s Creed,” “GTA 5,” and “God of War” have reportedly reached budgets between $200 to $700 million, often surpassing Hollywood blockbuster film production costs. The increasing competition, high player expectations, and potential negative reception of ‘woke’ content are further complicating the challenges faced by Western studios in producing profitable AAA titles. In contrast, emerging nations like Japan, South Korea, and Malaysia (referred to as ‘new Asia’) are anticipated to gain prominence in the video game industry, with games such as “Black Myth Wukong” showcasing competitive quality while operating on lower budgets. The distinct working methods and potentially lower production costs of these regions could significantly redefine the market landscape in the coming years.
Lybee Park, PDG de Pearl Abyss Europe, explique que la perception selon laquelle les jeux occidentaux ralentissent peut s’expliquer par plusieurs facteurs : l’augmentation des attentes du marché, l’élévation des coûts de production et l’aversion au risque, ainsi que le désir croissant du public pour un contenu culturel diversifié. Les studios occidentaux cherchent à maintenir les normes élevées de qualité et d’innovation, mais cela peut entraîner des délais de production plus longs et des budgets plus importants. De plus, l’aversion au risque incite les développeurs à se concentrer sur des suites, des spin-offs ou des genres familiers avec un public établi, ce qui limite potentiellement l’innovation. Enfin, le souhait de diversité culturelle pousse les joueurs à découvrir des offres uniques venant d’autres régions, comme la Corée, ce qui peut rendre les jeux occidentaux moins frais ou innovants en comparaison.
Lybee Park: The success of Black Myth Wukong indeed demonstrates that single-player games can also captivate the Asian audience, including those accustomed to MMORPGs and mobile games. This indicates that interest in immersive narrative experiences is not confined to a particular type of player or specific geographic region.
Lybee Park, an executive at Pearl Abyss, explains that the perceived slowdown in Western game development can be attributed to several factors: increasing market expectations, rising production costs, and risk aversion among developers. Additionally, there is growing public interest in diverse cultural content. She also notes that the Asian market, including South Korea and China, is evolving with new preferences for various genres and platforms, presenting opportunities for developers to innovate and diversify their offerings. The success of Black Myth Wukong demonstrates that solo games can appeal to these new players as well.
Yes, it is indeed our intention to target a new market by developing Crimson Desert, a single-player narrative game. We have always aimed to offer varied and innovative experiences for our players, and the single-player narrative genre presents an excellent opportunity for us to diversify our offerings while remaining committed to our standards of quality and immersion.
The user’s question centers on the perceived slowdown in innovation and quality within Western video games, as well as the potential for Asian markets to adopt single-player narrative games. Lybee Park, CEO of Pearl Abyss Europe, provides insights into these issues:2024 will see a resurgence of previously licensed titles, generating both excitement and disappointment among players. The “woke culture” also shapes gaming trends. In 2025, numerous games from what is referred to as the “new Asia,” including China, South Korea, and Malaysia, are anticipated to enter the market, changing game proposals and production methods. A notable upcoming title is “Crimson Desert” by Pearl Abyss, an ambitious action-RPG that faced skepticism upon its reveal but impressed during a test session. The Western video game industry faces challenges such as rising production costs and declining profitability. Games like Assassin’s Creed, GTA 5, and God of War have multi-hundred million dollar budgets, often surpassing those of Hollywood blockbusters yet struggling to cover their costs. Marc-Alexis Côté, executive producer of the Assassin’s Creed license, noted that development costs for the franchise have multiplied by ten since its inception. Lybee Park discussed factors contributing to the slowdown in Western game development, including escalating market expectations, increased production costs and risk aversion, and growing public interest in diverse cultural content. Western studios tend to focus on established genres and franchises due to risk aversion, limiting innovation. Meanwhile, emerging markets like Asia demonstrate new preferences for various game genres and platforms, offering opportunities for developers to diversify their offerings. Pearl Abyss aims to capitalize on this trend with “Crimson Desert,” an ambitious single-player narrative RPG designed to offer varied experiences while maintaining quality and immersion.
Lybee Park: Despite sharing some similarities with Black Desert Online in terms of gameplay mechanics, Crimson Desert is designed as a distinct experience aimed at providing immersive storytelling and intense gameplay. While both games incorporate common elements, our goal is to create a unique experience that stands out through its narrative and gameplay. We do not aim to establish a direct link between the two titles but rather to offer players an engaging new adventure that complements our previous offering.
Frustrated with Western games that are often late and lack innovation? The future looks promising with the rise of the Asian gaming industry, particularly in South Korea and China. Pearl Abyss, known for Black Desert Online, is now venturing into single-player narrative games with Crimson Desert, a genre highly favored by Western players. Lybee Park, CEO of Pearl Abyss Europe, explains that this strategy aims to diversify their portfolio and reach a broader audience while maintaining the company’s identity.
The user’s text discusses the evolution of the gaming market, particularly focusing on the shift in preferences from Western to Asian markets. The conversation centers around Pearl Abyss, a game development company, and their upcoming title, Crimson Desert. An interview with a representative from Pearl Abyss reveals that while Black Desert Online was a successful MMORPG, the company aims to diversify its portfolio and reach a broader audience with Crimson Desert, a single-player narrative game.
The interview explores the gaming industry’s shift towards diversity and new genres, focusing on Pearl Abyss, a South Korean game developer. The company has gained popularity with its MMORPG “Black Desert Online” and is currently working on “Crimson Desert,” a single-player narrative game. The discussion covers various topics:—During an interview, Lybee Park, CEO of Pearl Abyss Europe, addressed the gaming industry’s recent trends. He highlighted that their upcoming action-RPG “Crimson Desert” aims to challenge traditional single-player games through its ambitious scale and narrative depth. Despite initial skepticism, the game was previewed for two hours at Paris Games Week in 2024. The interview also noted a slowdown in Western game development due to rising market expectations, increased production costs, risk aversion, and an emphasis on familiar genres and established player bases. This has resulted in fewer groundbreaking ideas and longer development times for some Western AAA titles, which face challenges in meeting critical acclaim and profitability goals while catering to the growing public demand for diverse cultural content.Asian nations, particularly South Korea and China, are emerging as significant forces in the industry, characterized by lower production costs, different working methods, and a willingness to explore various game genres. This is exemplified by titles like “Black Myth Wukong,” developed over five years with a $70 million budget by Game Science, which contrasts markedly with Western AAA game development’s larger budgets and teams.Lybee Park provided insights into Pearl Abyss’s strategy of expanding beyond the successful MMORPG “Black Desert Online” to reach a broader audience with “Crimson Desert.” This single-player narrative game represents an effort to meet the increasing demand for diverse and innovative gaming experiences that transcend geographical preferences.
