The Pitfalls of Game Development: Why Projects Often Stall

The latest round of layoffs at Xbox and its game studios has not only resulted in significant job losses but also led to the cancellation of several projects that had been in development for years. This move has raised concerns about Microsoft's ability to manage its vast collection of game studios and publishers. The cancellation of titles like Everwild and Perfect Dark has further fueled the narrative that Microsoft struggles with game development. However, it's essential to note that Microsoft's studios have produced excellent games in the past, such as MachineGames' Indiana Jones and the Great Circle, Obsidian's Avowed, and id's Doom: The Dark Ages. The issue lies not with the studios' capabilities but rather with the management of game development. Some studios thrive under Microsoft's ownership, while others face significant challenges. The criticism leveled at Microsoft for canceling projects often stems from a sunk cost fallacy, assuming that a project that has been worked on for years must have something salvageable. In reality, game development is a complex process, and a project can be worked on for years without producing a coherent or fun experience. Launching a game is also an expensive process, and if the game is not up to par, it may not recoup the development costs. So, how do studios end up in this situation? One common pattern is the obsession with creating vertical slices, which are expensive and labor-intensive. Vertical slices require creating a chunk of the game to production quality, and if fundamental design changes are made, the work can be scrapped. Most developers prefer to work on simpler prototypes, which are cheaper and faster to iterate upon. However, these prototypes may not look like a polished final game, making it challenging for decision-makers to understand the vision. The other key problem is trend chasing, where studios pivot mid-cycle to copy the latest big hit title. This can result in a mess, and if the trend is not compatible with the original vision, the game may not be releasable. In both cases, there comes a point where losses must be cut, and the game may need to be canceled. The issue often lies with having the wrong people in decision-making roles, either those who do not understand how to translate a prototype into a final product or those who are unable to hold faith in a game's design and direction. Having too many decision-makers can also lead to a game's vision being changed based on internal corporate politics rather than being consistent and focused. With emotions running high after Microsoft's layoffs, it's essential to consider the statements from those affected and the challenges they face. No company in the industry is immune to these problems, and every publisher cancels projects or has mismanaged projects that turned out terribly. The key point is that game development is unique and requires a different management skillset than other fields of software development. Creative studios and their projects don't work the same way as business software development teams, and the approach required to manage them is radically different. This management skillset is core to the success of every great publisher, and with significant investments in studio assets, it's a skillset that Microsoft needs to master.