Rethinking the Video Game Industry: Shawn Layden's Call for a Radical Reset

Shawn Layden, the former executive and leader of the Japanese brand Sony, has emerged as a voice of reason in the video game industry. After his tenure at the helm of Sony, where he was not widely liked, Layden is now offering a fresh perspective that challenges the industry's status quo. His recommendations, which go against the grain of current industry practices, have sparked a much-needed conversation about the sustainability of the video game business model.

Challenging the Perpetual Growth Mindset

The Unsustainable Cost of Triple-A Games

Layden argues that the industry's reliance on ever-increasing budgets for triple-A games is unsustainable. He points out that when a game costs $5 million to make, it can be sold for $59.99, but when a game costs $125 million, it is still sold for $59.99. This simple math, he says, does not work in the long run. The gaming community has made it clear that they are unwilling to pay more than $60 for a video game, yet the industry continues to push the boundaries of production costs.

The Vicious Cycle of Sequels and Risk Aversion

The high costs of triple-A game development have led to a vicious cycle of sequels and risk aversion. Layden explains that if $150 million is spent on a game, the industry is then obligated to make a sequel, as the risks are defined through mathematics that do not align with the material reality. Consequently, CEOs and finance chiefs prioritize exploiting what is already known to work, rather than taking risks on something different. This has resulted in a proliferation of clones, DLCs, microtransactions, and battle passes, as a means to generate revenue while minimizing risks.

Rethinking the Video Game Business Model

Layden's solution to this unsustainable model is a "radical reset" in the video game business. He proposes that the industry needs to shift away from the current focus on immense budgets, games over 50 hours long, and hyper-realistic graphics. Instead, he suggests making cheaper games that are more in line with what the gaming community is willing to pay. This shift, he believes, will allow for more experimentation and risk-taking, ultimately leading to a healthier and more diverse video game ecosystem.

The Need for a Fundamental Shift

Layden's perspective challenges the industry's reliance on perpetual growth and the pursuit of ever-increasing production values. He argues that the current model is heading towards a cliff, and it is time to rethink what a video game should be. This call for a fundamental shift in the industry's approach to game development and business models has the potential to spark a much-needed transformation in the way the video game industry operates.

The Potential for Change

While the feasibility of Layden's proposals remains to be seen, his insights as a former industry leader carry significant weight. As the video game industry continues to grapple with the challenges of rising production costs and the changing expectations of players, Layden's call for a "radical reset" may serve as a catalyst for a more sustainable and innovative future for the medium.