The Power of Network Effects in the Gaming Ecosystem

The art of video game design is flourishing, but it feels like a really grim time to be in the business of making and distributing games. Huge global publishers and tiny indie studios alike are facing huge financial pressures, and it doesn’t seem to be letting up anytime soon.

So where did this enormous pressure come from, if consumer interest is high and sales are great? Verge video game reporter Ash Parrish joins Decoder to explain.

Links: 

• Global games market expected to grow to $189bn in 2024 | GamesIndustry.biz
• Why the video game industry is seeing so many layoffs | Polygon
• The tech industry’s layoffs and hiring freezes: all of the news | The Verge
• Fortnite made more than $9 billion in revenue in its first two years | The Verge
• Insomniac’s Spider-Man 2 Swings Past 10 Million Sold | IGN
• The future of Netflix games could look like reality TV | The Verge

Credits:

Decoder is a production of The Verge, and part of the Vox Media Podcast Network.

Our producers are Kate Cox and Nick Statt. Our editor is Callie Wright.

The Decoder music is by Breakmaster Cylinder.

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