The Games Industry Must Rethink Its Approach to Outsourcing and Contracting

A disturbing trend has emerged in the games industry, with two prominent composers, Sarah Schachner and Mick Gordon, experiencing a complete breakdown in their relationships with major studios. This unfortunate alignment of events serves as a symptom of a broader problem - the industry's flawed approach to outsourcing and contracting. The fact that these two highly respected composers, known for their exceptional work on major franchises, have had their collaborations with studios turn sour is a clear indication of a deeper issue. Schachner and Gordon have both spoken out about their experiences, with Schachner stating that her relationship with Activision Blizzard has deteriorated to the point where she and other creatives are no longer involved with the game's soundtrack. Gordon, on the other hand, has released a detailed statement about the contentious saga surrounding the Doom Eternal soundtrack album, which he claims demonstrates a breach of his contract and an attempt to defame him. The outsourcing of creative work has become a common practice in the industry over the past two decades, bringing both benefits and drawbacks. When managed properly, outsourcing can provide studios with the flexibility to tackle larger projects and access specialized skillsets. However, many companies have abused this model, using it as an excuse to downsize their own headcount or outsource core competencies. This approach has led to a troubling sense of disposability among some industry professionals, who view outsourcing as a plug-and-play solution. This mindset has resulted in a focus on cutting costs and margins, rather than prioritizing skill and quality. However, outsourcing and contracting models are inherently more expensive than in-house work, and the benefits lie in flexibility, not unit cost. The games industry can learn from Hollywood, which has a long history of working with contractors and outsourcing partners. While Hollywood can be a brutal industry, it generally handles recognized talent with care and respect. In contrast, the games industry has a tendency to treat top-quality contractors as disposable or convenient scapegoats. This needs to change. As these stories become more well-known, the industry may see a shift towards less flexible contracts and a greater emphasis on respecting the rights and contributions of contractors. Top talent in the industry is increasingly able to choose their clients, and the current mindset among development studios will not survive this change in the balance of power. The industry would do well to study how unionization among contractors has evolved in Hollywood and the harsh restrictions that have been placed on movie and TV studios. At the very least, contracts for creative outsourcing in video games are likely to become more restrictive, and savvy contractors will insist on adherence to standard contract terms. This may lead to some studios refusing to work with top talent, but ultimately, the industry will need to adapt to a new reality where contractors are valued and respected.