Expert Insights: Navigating the Evolving Games Industry in 2024

As 2024 unfolds, the games industry is poised for significant changes, following a tumultuous 2023 marked by major acquisitions, such as Activision Blizzard's official integration into Microsoft, and widespread job cuts. To gauge the potential trends and narratives of the new year, GamesIndustry.biz consulted with an array of publishers, developers, and industry professionals. Their predictions paint a complex picture of an industry torn between risk and innovation. StrangeScaffold's Xalavier Nelson Jr. forecasts a year where the industry will be caught between two opposing forces: the pursuit of large, risky investments and the growing appetite for smaller, indie projects. This dichotomy, Nelson suggests, will lead to increased budget fluctuations and project delays, culminating in a volatile landscape for publishers. He warns that these systemic issues are unlikely to resolve before 2026. Geogrify CEO Kate Edwards anticipates greater visibility for global game creations, particularly from emerging markets and non-Western studios, as players seek new experiences. Edwards notes that the expansion of the global player demographics will drive demand for diverse gaming content, challenging the dominance of Japanese and Western companies. Neowiz's Seungchul Kim predicts technological advancements in the Korean gaming market, including the increased use of AI to enhance work efficiency and manage costs, alongside significant growth in mobile and console gaming. Kim also foresees intensified competition in the mobile gaming sector and consistent growth in the PC and console market, with Korean developers engaging more actively with fandoms through live streaming and esports. Gameloft's Alexandre de Rochefort expects a surge in the use of AI for game development, simplifying asset creation and improving player experiences. He also predicts the rise of gaming subscription services, offering access to extensive game libraries for a monthly fee, and the expansion of 'games as a service' across all platforms, enabling cross-platform play. Riot Games' Jake Perlman-Garr warns of a rocky year ahead, with venture funding remaining cautious and some studios facing restructuring or closure. However, he believes private equity will show significant interest in the gaming sector, leading to major acquisitions. Perlman-Garr also sees increased investment in premium, single-player narrative games following the success of titles like Baldur’s Gate 3 and Starfield. Brad Hendricks of Blind Squirrel Games suggests that publishers will focus on risk mitigation, favoring games based on licensed IP, remasters, and re-imagined IP for more consistent returns. The co-CEOs of Iron Galaxy, Chelsea Blasko and Adam Boyes, highlight the trend of games evolving into platforms for various interactive experiences, citing examples like Roblox and Fortnite, which offer vast, collaborative ecosystems for players and developers alike. GameDiscoverCo's Simon Carless views 2024 as a year where the middle market will continue to compete fiercely for consumer attention, with nearly 100,000 games available on Steam and a plethora of high-quality, discounted titles. Carless advises that to succeed, gaming firms need a large catalog of discounted games and a must-play title, noting that while small teams can achieve massive success, they face intense competition from thousands of other developers.