TWIG #305 Music Stops at Netflix Games as Hell's Bells Ring for AA Games
Oct 25, 2024
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The podcast explores significant shifts in the gaming landscape, including Netflix's closure of its AAA studio and TikTok's growing impact on mobile gaming. There’s a lively debate about the struggles of AA games amid rising production costs. Attention also turns to the booming influencer marketing scene in gaming and the impressive $184 billion valuation of the industry. Insights into hybrid casual gaming and emerging titles showcase the changing dynamics, while humorous commentary keeps the conversation engaging throughout.
Netflix's closure of its AAA game studio reflects a critical shift towards sustainable gaming models amidst profitability challenges.
The influencer marketing industry is booming, highlighting the importance of strategic collaborations for indie developers to gain visibility.
The rise of TikTok's Live Ops Program emphasizes the platform's role in enhancing player engagement and retention strategies for mobile games.
Deep dives
Netflix's Game Studio Closure
Netflix has shut down its AAA game studio, signaling a significant shift in its gaming strategy. This decision follows previous claims by the company that gaming was experiencing unprecedented growth, a notion that many in the industry have questioned. The closure points to the challenges media and tech giants face when venturing into gaming, particularly when relying on high-budget projects that lack a clear path to profitability. As Netflix navigates this volatile environment, its future in the gaming space may pivot towards more sustainable models rather than expensive internal development.
The Rise and Responsibility of Influencers
The influencer industry is booming, projected to be worth $24 billion this year, highlighting the vital role influencers play in game marketing and recommendations. As gamers increasingly rely on influencers for entertaining content and guidance, their impact on the industry cannot be understated. This growth suggests that influencer-led strategies could offer indie developers a pathway to success by leveraging social media to boost visibility and engagement. Understanding how to effectively collaborate with influencers will be crucial for developers aiming to penetrate this competitive market.
Shifts in Gaming Industry Value
A recent report from Dentsu indicates that the gaming industry has surpassed the combined value of the music and film industries, reaching $184 billion. This evolution underscores the growing cultural and economic significance of gaming as a primary entertainment medium. Additionally, interesting trends reveal that the average age of gamers has increased, with many older individuals now engaging with games, even those initially claiming not to play. These shifts challenge preconceived notions about the gaming demographic, showcasing its diverse and expanding audience.
The Future of AA Games
Sean Layden, former head of Sony's worldwide studios, commented on the apparent decline of AA games in an industry emphasizing high budgets and franchises. With the risk tolerance for novel projects waning, he argues that the creative diversity once represented by AA studios has diminished. However, despite this bleak outlook, examples of successful AA games like Alan Wake 2 suggest that there is still potential for growth in this category. The challenge remains for developers to navigate market expectations while maintaining innovative and engaging gameplay.
TikTok's Live Ops for Mobile Games
TikTok has launched its Live Ops Program aimed at helping mobile game publishers enhance player engagement post-launch. This initiative reflects TikTok's growing influence within the gaming sector, facilitating promotional campaigns for in-game events and updates. The program's rapid success, demonstrated by a ninefold growth in campaigns compared to earlier this year, indicates a strong demand for interactive player experiences. As more mobile developers seek innovative ways to retain users, leveraging TikTok's platform could provide a strategic advantage in a competitive landscape.
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This episode of This Week in Games covers major shifts in gaming, as Netflix shutting down its AAA studio, TikTok’s LiveOps program, and the rise of influencer marketing and Supercell’s all-hands-on-deck approach to save Squad Busters. The episode also addresses the perceived decline of AA studios.
Hosts: Jen Donahoe, Adam Telfer, Phillip Black and Mishka Katkoff
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