Nacon Executive Highlights Industry's Over-Saturation with Games

The gaming industry is commencing 2024 with a mix of layoffs, sales, and closures, alongside moderate sales growth. According to Nacon's head of publishing, Benoit Clerc, the primary issue is the oversaturation of games in the market. This surge in games is a result of investments made during the COVID-19 pandemic, when every game seemed to be generating significant revenue. Consequently, the market is now flooded with games, making it challenging for new releases to gain traction. Clerc emphasizes the importance of having a strong positioning for each game to reach its target audience. As a mid-tier publisher, Nacon focuses on niche markets that are not fully catered to by AAA blockbusters. The company's goal is to connect with gamers who have a passion for specific genres, such as off-road racing or rogue-like games, by working with developers who share the same expertise and enthusiasm. However, with the increasing competition in these niches, Nacon must be selective in choosing which markets to pursue. The pressure to increase production values and budgets is mounting, but Clerc believes that Nacon's approach of giving creative freedom to its developers sets it apart from major publishers. The company has learned from its experiences, including the challenges faced with the release of The Lord of the Rings: Gollum, and has updated its processes to avoid similar issues in the future. Nacon has also been expanding through acquisitions, having purchased 16 studios in the past four years, and is open to further opportunities that align with its strategy. On the peripherals side, Nacon USA president Jack Reynolds discusses the company's approach to innovation in a market where first-party manufacturers tend to prioritize familiarity and consistency. Reynolds highlights the importance of exploiting new features and technologies to create unique products, such as customizable controllers and gaming accessories. While officially licensed accessories come with certain constraints, Reynolds believes that the benefits of complying with platform holders' conditions outweigh the limitations. The future of the peripherals business is evolving, with a shift towards digital and mobile platforms, but Reynolds does not foresee the demise of brick-and-mortar retailers. Instead, he expects their business models to adapt to the changing market. Nacon is poised to capitalize on its unique position as a company with both publishing and accessories arms, creating opportunities for innovative products and communications that cater to both peripheral and game software audiences.