Industry Veteran Don Daglow Reflects on the Evolution of the Gaming Industry

Games industry expert Don Daglow revisited his predictions from ten years ago, discussing the current state of the industry and its future prospects. Daglow, who has been involved in the industry since the 1970s, believes that large publishers are under increasing pressure to innovate through mergers and acquisitions due to the demands of being a public company. He notes that this can stifle internal innovation, forcing companies to rely on external acquisitions to drive growth. The push for maximum return on investment has also led to a focus on managing live service games as a 'massive spreadsheet exercise,' where publishers constantly tweak elements to increase revenue. Despite these challenges, Daglow remains optimistic about the industry's future, predicting that publishers will adopt business models similar to those of movie studios, focusing on creating intellectual properties that generate outbound licensing revenue. He also believes that consoles will continue to evolve, potentially becoming more like set-top boxes, and that the distinction between mobile and console gaming will become less relevant as developers focus on screen size, control type, and other factors. Daglow also discussed the importance of forming relationships with players, particularly in live service games, and the need for developers to think about how to create meaningful connections with their audience. Finally, he touched on the impact of AI on the industry, noting that it will bring about significant changes, but the key question is what aspects of art and creativity can be replicated by machines, and how developers can evolve to meet the challenges of this new era.