Games Industry to Rebound Soon, Predicts RallyHere CEO

The past year has been challenging for the gaming industry, with the games-as-a-service sector facing unique concerns, such as sudden closures of successful titles and revenue shortfalls. Stewart Chisam, president of Hi-Rez Ventures and CEO of RallyHere, offered his insights on the matter at the Montreal International Games Summit. Chisam attributes the current state of the industry to a COVID-induced bullwhip effect, where a sudden surge in demand led to increased investment, followed by a decline as player habits returned to normal. He believes the industry is now correcting itself and will revert to its pre-pandemic growth trend. Chisam predicts the industry will hit a low point this quarter, but will then start growing again. He cites macro-trends such as the desire for cross-platform play, multiplayer social experiences, and flexibility as driving forces for the industry's growth. However, he acknowledges that the market can only support a limited number of games, and the industry is currently figuring out how many games it can sustain. Chisam suggests that while now may not be the best time to launch a live service game, it's not the worst time to start working on one, as trends in the industry are cyclical. He emphasizes that the current issues are temporary and that the future of gaming is bright, with the industry continuing to grow and offer opportunities for innovation and success.