Can Subscription Services Revitalize Mid-Tier Games?

The decline of AA-tier games has been a topic of discussion for over a decade, with the Xbox 360 era marking both the peak and the beginning of the end for lower-budget, quickly developed titles. Recent events have brought this issue into sharper focus, including the introduction of $70 price points for AAA games, making consumers more aware of the disparity between actual AA-tier games and those masquerading as AAA titles. The notion of 'AAAA' games has also been proposed by some executives, attempting to differentiate titles within the overcrowded AAA category. The industry's output has become polarized, with AAA games at one end and indie games at the other, leaving a significant gap in the middle. Many developers are unhappy with the pressure to label their games as AAA and launch them at $70, fearing it may be unsustainable. The situation is exemplified by Ascendant Studios, which recently furloughed staff due to the poor performance of their game, Immortals of Aveum. The game, although not perfect, demonstrates that a studio can produce high-quality games without breaking the bank. However, the $70 price point creates unrealistic consumer expectations, making it challenging for games to succeed. Some developers, like Saber Interactive's CEO, have expressed concerns about the $70 price point, suggesting it may not be conducive to success for many games. There are exceptions, such as Helldivers 2, which launched at $40 and became a surprise hit. Building a mid-range tier could take time, but it could change the economics of game development, allowing for more realistic consumer expectations and lower development costs. Subscription services like Game Pass may hold the key to reviving the AA game segment, as they require a steady flow of content to keep subscribers engaged. By focusing on shorter, lower-budget games, developers can create fun and entertaining experiences without breaking the bank. These titles can be experimental, and players' expectations will be set reasonably, given that they're not making a commercial calculation about buying the game. Controlling budgets and designing games within limited constraints will become essential skills for studio managers. Returning the AA sector to prominence as a primary provider of games for subscription services could rescue a whole tier of creative output and provide much-needed stability to the development sector overall.