Shawn Layden, the former head of PlayStation, recently emphasized that rumors of the video game industry’s demise are greatly overstated. In an interview with VentureBeat, Layden noted that concerns about the downfall of gaming have been circulating for decades, yet the industry has consistently proven resilient. He attributed the recent wave of layoffs in the gaming sector more to a misalignment of talent with industry demands rather than a sign of gaming’s decline.
Regarding the recent layoffs and their human toll within the video game industry, Layden described them as a “lagging indicator” of the industry’s overall health. He explained that layoffs typically occur as a response to issues that arose approximately a year prior, reflecting an attempt to address past challenges.
“You had this plan and it didn’t work out. You feel you have people now who aren’t in line with the new course correction. Layoffs don’t address today’s problem,” he said. “They address decisions made in the past that may not have been the right decision. Let’s understand it’s not taking the temperature of today.”
Layden expressed his anticipation of continued layoffs in the video game industry, even though the companies instigating these staff reductions are financially thriving. “It’s striking to observe that despite some of these companies achieving record revenues and profits, they are still laying off 8% of their workforce. Apart from a fervent pursuit of profitability, I find it perplexing,” he remarked.
However, Layden also highlighted a significant concern: the escalating costs of game development pose an “existential threat” to the gaming sector. With game budgets soaring to as much as $300 million, he cautioned that this trend could potentially lead to long-term challenges.
Drawing parallels, Layden likened the current state of gaming to a “cathedral moment,” evoking the era when humans constructed grand cathedrals as colossal monuments to faith across Europe and beyond. He noted that while these cathedrals were impressive feats, their construction relied heavily on indentured labor, which proved unsustainable in the long run. Similarly, Layden suggested that the AAA games industry may face challenges in its sustainability over time.
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Former PlayStation Boss Responds To Mass Layoffs In Gaming, Says Things Will Be “Fine”: Former PlayStation boss Shawn Layden is speaking up to say the demise of the video game industry… https://t.co/TzqGxyOLzb | https://t.co/kyd5UyQxtn | https://t.co/mfR4u20cXO #gaming #news pic.twitter.com/LreADAAlgu
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“It became prohibitively time-consuming and expensive. They were wonderful and beautiful. You can look at any of them across Europe and think, ‘That’s a marvel.’ But we don’t make them anymore. We don’t make them because the math doesn’t work. If you have four walls and a roof, you can call it a church, and God will come visit. You don’t need the cathedral anymore,” he said.
Layden proposed a restructuring of game development to mirror the efficient model seen in the film industry. He suggested adopting a system where contract workers assemble for a specific project, disbanding once it’s completed, similar to how movie productions operate.
Highlighting the evolution of the movie industry, Layden noted that it had shifted away from employing individuals on a full-time basis, akin to the traditional model of screenwriters, actors, musicians, electricians, and carpenters.
He emphasized that this approach is now outdated. Layden also pointed out a key contrast between the film and gaming sectors: while unionization is prevalent among movie workers, it remains relatively rare in the video game industry.
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