Has the Live-Service Model Lost Its Luster?

The games industry has been dominated by a simple yet misleading principle: to achieve significant financial success, one must excel in live service. However, this notion has been challenged as the industry undergoes a significant shift. Single-player games are not obsolete, but their economic viability has been called into question. The traditional model of selling a game as a one-time transaction has become outdated, with recurring revenue streams being the new focus. The tide was always bound to turn, as live-service games, by their very nature, monopolize consumers' attention and wallets, leaving little room for other games to thrive. In contrast, regular games coexist peacefully, allowing consumers to engage with multiple titles simultaneously. The market can accommodate a vast number of regular games, but live-service games are a different story, with only a select few achieving success and creating a high-risk environment for new entrants. The industry's obsession with live service has been driven by the allure of massive revenues generated by successful titles like Fortnite and Genshin Impact. However, the economics of the industry are in disarray, with spiraling development costs, stagnant audience growth, and resistance to price increases. Live-service games seemed to offer a solution, but the risk profile has become too great to ignore. The past year has seen a marked reversal of the trend, with several live-service projects being canceled or reworked as single-player experiences. Notable examples include Microsoft's abandoned MMO project and EA's decision to pivot Dragon Age: The Veilguard to a single-player game. Capcom also reportedly shifted its focus from a live-service style game to a single-player experience for Resident Evil 9. The industry is learning from its mistakes, and the once-attractive prospect of live-service revenues is now tempered by the reality of high-profile failures and a crowded market. The era of live-service dominance appears to be waning, and publishers are being forced to reevaluate their strategies. The future of live-service games remains uncertain, but one thing is clear: the industry is undergoing a significant transformation, and the traditional live-service model is no longer the only viable option.