In a recent discussion, Matthew Karch, the head of Saber Interactive, shared his perspective on the future of the gaming industry. He believes that the era of high-budget AAA games, costing between $200 to $400 million, is nearing its end. Karch argues that such enormous budgets are neither necessary nor appropriate for the industry. He went further to suggest that these high budgets may be a significant factor contributing to the recent wave of job losses within the gaming sector.
The term "AAA" has traditionally been used to denote games with large budgets, high quality, and low risk of failure. However, according to industry professionals, this label has lost its meaning. Charles Cecil, co-founder of Revolution Studios, described the term as "silly and meaningless," suggesting that it reflects a time when the industry shifted towards large investments by major publishers, but not necessarily for the better.
Cecil's criticism highlights a broader sentiment that the industry's focus on high-budget games has led to a competitive race for profits, often at the expense of quality and innovation. An example of this trend is Ubisoft's "Skull and Bones," which the company boldly labeled as a "AAAA game," further illustrating the perceived absurdity of such classifications.
