Has the Video Game Industry Hit Rock Bottom and Is It Poised for a Rebound?

Following a tumultuous 2023 and a rough start to 2024, concerns about the state of the video game industry and its future prospects are widespread. A panel at Reboot Develop Blue 2024 addressed this topic, arguing that while the industry has indeed reached a low point, it is now poised for a rebound. The panel featured Jonas Antonsson, CEO of Raw Fury; Anders Leicht Rohde, CCO of Funday Games; Jussi Tähtinen, CEO of Nitro Games; and Antonio Pašalić, Program Director at WN Media Group, with Shum Singh, Managing Director at Agnitio Capital, moderating the discussion. The panelists, all veterans of the industry with over two decades of experience, reflected on the significant growth and changes the industry has undergone. Tähtinen noted that in 2007, the mobile market did not exist, and the PC segment was small, with the industry primarily focused on consoles. However, today, the PC market is larger than the console market. The panel discussed the current challenges facing the industry, including over 15,000 announced layoffs, and the question of where these individuals will go. Tähtinen suggested that many will leave the industry in search of more secure employment. However, the situation varies by region, with some areas, such as the USA, experiencing a more significant impact due to less favorable financing conditions. In contrast, Serbia is witnessing significant investments and growth in its local gaming industry. The panelists also highlighted the emergence of new, small independent studios founded by individuals affected by the layoffs. Leicht Rohde noted that while many people are leaving the industry, there are also new arrivals, including recent graduates, who are facing a challenging job market. Raw Fury's Jonas Antonsson pointed out that the current situation makes jobs in the gaming industry less desirable, potentially deterring new talent from entering the sector. However, he also emphasized that the industry has always been cyclical, with past downturns giving rise to dominant companies. The panel moderator, Shum Singh, mentioned that some companies have reached historically low market valuations, making it an attractive time to invest. The panelists agreed that financing is becoming more available, with Antonsson suggesting that the worst is behind the industry. The discussion also touched on the potential impact of AI on the industry, with the consensus being that it will not significantly exacerbate job insecurity. Instead, AI is likely to simplify processes and create new job opportunities. The panel concluded with a discussion on the future of the industry, including the potential for indie game developers to assert themselves and the need for the market to support and protect independent game development. The panelists emphasized the importance of discoverability and curation in a market with a vast number of titles and choices. According to Singh, the industry is going through an adjustment phase, but it remains a huge and diversified market with significant opportunities for growth and innovation.