The Game Business Show The man who signed Arc Raiders: "The AAA industry is at its end"
Dec 2, 2025
In this engaging discussion, former Nexon CEO Owen Mahoney shares insights on the evolving game industry. He highlights the acquisition of Embark, detailing challenges and the value of patience in live games. Owen boldly asserts that AAA processes are broken, stifling innovation due to risk-averse decision-making. He explores how AI could dramatically expand the gaming market and emphasizes the importance of balancing creative freedom with business needs. His reflections on the industry's future and key innovators like Valve spark a thought-provoking conversation.
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Buying Embark Was A Contrarian Win
- Owen Mahoney bought Embark despite investor pushback because he believed their developer strengths complemented Nexon's growth expertise.
- He called it the easiest yes he ever made and is thrilled with how the studio proved that thesis.
Launch Peaks Mislead Investors
- New online games often 'pop' at launch, drop, then grow again over long periods as teams fix problems.
- Misreading initial peaks as success or failure leads investors to wrong conclusions about long-term potential.
Stop If You Can't Find The Fun
- If you can't see where a game is fun now or how the team will reach fun, stop investing further.
- Ask developers to point to the specific moments and fixes that will make the game enjoyable.
