Nacon Executive Claims the Gaming Industry's Main Issue is an Overabundance of Games

The gaming industry is starting 2024 on a similar note to how it ended 2023, with news of layoffs, closures, and modest sales growth. According to Benoit Clerc, the head of publishing at Nacon, the primary issue plaguing the industry is the sheer number of games currently available on the market. This oversaturation is a result of investments made during the COVID-19 pandemic, when every game seemed to be generating significant revenue. With 50 or 60 games being released daily on platforms like Steam, it has become increasingly difficult for games to gain traction and visibility. Clerc emphasizes the importance of having a strong positioning for each game, citing Nacon's release of Robocop: Rogue City as an example of a game with a well-known brand and high-quality product that can reach its target audience. As a mid-tier publisher, Nacon cannot compete directly with AAA blockbusters but can succeed by targeting niche audiences that are not being fully served by larger publishers. Clerc notes that Nacon's approach is to give developers creative freedom, allowing them to produce games that cater to specific groups of gamers. The company has also been expanding through acquisitions, having purchased 16 studios in the past four years, and Clerc believes that this expansion has been relatively smooth. On the peripherals side, Nacon USA president Jack Reynolds discusses the challenges of innovation in a market where products like headsets and gamepads may seem similar to consumers. However, Reynolds points out that each new platform generation brings opportunities for third-party manufacturers like Nacon to exploit new features and create innovative products. While officially licensed accessories provide a level of consumer confidence, complying with platform holders' conditions can constrain companies like Nacon. Reynolds acknowledges that there are frustrations with being beholden to these terms, particularly when platforms like Microsoft and Sony are publishing games on each other's consoles. Looking to the future, Reynolds believes that the peripherals business will continue to evolve, with a growing focus on digital and mobile platforms. However, he does not think that brick-and-mortar retailers will disappear entirely, instead adapting to a changing business model. For Nacon, the challenge is to evolve its products and communications to reach both peripheral and game software audiences with a unified voice.