Nacon Executive Highlights Industry Issue: Overabundance of Games

The gaming industry is entering 2024 with a mix of layoffs, closures, and modest sales growth. According to Benoit Clerc, the main issue is the oversaturation of the market with too many games, resulting from investments made during the COVID-19 pandemic. This has led to a situation where there are 50-60 game releases on Steam in a single day, making it challenging for titles to gain traction. Clerc emphasizes the importance of having a strong positioning for each game, citing Nacon's release of Robocop: Rogue City as an example of a successful game with a big mainstream brand and high-quality product. However, as a mid-tier publisher, Nacon cannot compete directly with AAA blockbusters and instead focuses on targeting niche audiences with specific interests. The company has been investing in its publishing arm, acquiring 16 studios in the past four years, and has been integrating these additions smoothly. Clerc notes that the key to success lies in giving developers creative freedom and respecting their autonomy. Nacon has also been expanding its peripheral business, producing controllers, headsets, and other accessories for various platforms. Jack Reynolds, President of Nacon USA, highlights the challenges of innovating in the accessory market, where first-party manufacturers tend to prioritize familiarity and muscle memory over new features. Despite these challenges, Reynolds believes that there is still room for innovation, particularly with the rise of new platforms and features. However, the company must navigate the constraints of complying with platform holders' conditions, which can limit the design of products that work across multiple platforms. The future of the peripherals business is likely to be shaped by the shift towards digital and mobile platforms, with Reynolds noting that Nacon's first contact with customers often comes through mobile channels. While the brick-and-mortar retail model may need to adapt, Reynolds does not think it will disappear entirely, and Nacon is focused on evolving its products and communications to reach both peripheral and game software audiences with a unified voice.