Shawn Layden Warns: Xbox Game Pass Turns Creators into ‘Salary Slaves’

Economic Recession Threatens Video Game Industry’s Traditional Sales Models

The video game industry’s “recession-proof” label appears to be fading. With looming inflation and economic recession fears, people’s spending patterns are changing. While games themselves may retain their resilience, their current business models appear less robust against economic pressures. This assessment comes from a detailed GamesIndustry.biz report, which drew on discussions with key figures such as former PlayStation executive Shawn Layden, Mat Piscatella, and Piers Harding-Rolls. The report indicates that existing business strategies, including rising game prices and the surge in subscription services, may not be equipped for these new economic conditions. In the US, consumers plan to reduce video game spending due to concerns about inflation and recession, a significant shift from behavior observed during previous economic crises. This change has led to a concentration of revenue in a few major titles, such as Fortnite and Roblox, which capture the majority of players’ time and money. Consequently, most other titles are now selling less. Experts also criticize the increase in premium game prices to $80. The proliferation of free games and subscription services, like Xbox Game Pass, encourages many players to avoid higher-priced purchases, thereby exacerbating pressure on traditional sales models.

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Jonathan Dubinski

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