Shawn Layden, a gaming industry veteran who held senior roles at Sony and now serves as strategic advisor to Tencent Games, raises concerns about growing interest from companies as Google and Amazon in the industry games.
For many people, the entry of more companies into the sector can be beneficial, increasing investment and the supply of securities, generating jobs and potentially increasing the quality of products.
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However, Layden and other experts view this trend with caution, highlighting the challenges it could pose for the industry. Layden shared his perspectives during a keynote at the GamesIndustry.biz Investment Summit in Seattle.
Shawn Layden expressed important issues related to the entry of technology giants like Google, Amazon, Apple and Netflix in the gaming market.
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He highlighted three areas of concern for the industry with the arrival of these large companies. See what they are below!
1. Consolidation and creativity
He warned that consolidation, marked by game studio acquisitions and closures, could improve creativity. Large companies may become more risk averse, this may limit innovation and the diversity of games available.
2. Rising development costs
Layden emphasized that rising game development costs pose a real threat to the industry.
Developing games has become more expensive, making high-budget projects risky. This could affect the ability of smaller studios to compete.
3. Entry of non-endemic
It also brought the entry of companies not traditionally linked to games, such as technology giants, as a factor of change in the sector.
The presence of “non-endemics” can change industry dynamics and create challenges for existing players.
Such concerns reflect the evolving landscape of the gaming industry, where changes can have significant impacts.
The search for a balance between innovation, creativity and financial sustainability remains a crucial topic of discussion as the industry adapts to these transformations.
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