A coalition of industry veterans behind landmark titles including Dishonored, Ultima Online, Her Story, and Star Wars: Galaxies has argued that the videogames sector’s current troubles run far deeper than any single studio or franchise. In a new feature originally published in Edge magazine, these developers reflected on the ongoing crisis sweeping through game development, offering some sobering conclusions about what it will take to resolve them.
The discussion emerged amid widespread agreement that the industry is facing difficult times, even if there is disagreement over exactly how severe things are. Some veterans have compared the current climate to the infamous crash of the early 1980s, while others offer more measured assessments. Regardless of where one lands on that spectrum, the consensus is clear: the situation is not good.
A problem beyond videogames
The most striking takeaway from the conversation is how many developers refuse to frame the crisis as merely a game industry issue. Harvey Smith, former creative director at Arkane Studios and co-creator of Dishonored, said he cannot separate the troubles from larger systemic forces.
“It’s impossible for me to look at this as a game industry problem, when really it’s the result of this much bigger, complex system that we’ve allowed to be captured by greedy, rapacious forces.”
Harvey Smith, former creative director at Arkane Studios
Smith pointed to Redfall, the highly anticipated Bethesda game whose troubled launch preceded a wave of layoffs and studio closures in 2024. He suggested that the people behind it might have gone on to make another Dishonored had they been given the chance rather than being pushed out.
“Instead of just being crushed and thrown to the wind, maybe those people would have figured it out and then, another cycle along, they would have had another Dishonored,” he said. “And, even if they just made the occasional hit—one out of every three or whatever—wouldn’t you want to hold onto that? I guess the answer is no. You wouldn’t want to do that, if there’s an opportunity cost where instead you could put that money into AI, and even if it’s a bubble, your share price goes up massively.”
The economics of art
Other developers echoed this sentiment, questioning whether the current financial structure can accommodate creative work at all. Tanya X. Short, co-founder of Kitfox Games, said she doubts today’s economic models were ever designed to support artistic ambition.
“I don’t think our current financial models are set up for art or entertainment. I just don’t think art is what capitalism is designed to nurture. But humans are.”
Tanya X. Short, Kitfox Games co-founder
Raph Koster, the veteran behind Ultima Online and Star Wars: Galaxies—whose studio Playable Words recently launched a new MMO—said he believes these dynamics follow an almost inevitable pattern once left unchecked.
“Systemic dynamics are what really make this happen. Absent regulation, it develops into market concentration, followed by cartels, followed by monopolies. That’s intrinsic in how it works.”
Raph Koster
“We might have to fix reality”
Sam Barlow, the developer known for narrative-driven titles such as Her Story, Telling Lies, and Immorality, framed the situation in perhaps the starkest terms of all.
“Ultimately, to fix what’s broken in the videogame industry, we might have to fix reality.”
Sam Barlow
The outlook is undeniably grim, particularly given humanity’s apparent tendency toward doing the opposite of fixing things. It is also difficult to dispute when the mainstream game business appears consumed by consolidation that seems to inevitably lead to layoffs and increasingly risk-averse output. Earlier this year, Devolver Digital—which went public in 2021—announced its intent to exit development because the videogames business simply was not compatible with the market’s demands for “predictable, sequential growth,” a stark admission that the system as it stands is broken.
An optimist’s hope
Despite the gloom, Smith said he remains hopeful about the future of creative work in games. He believes people will continue to collaborate and make compelling experiences even if the surrounding structures change dramatically.
“The model might be different, the structure of it all might be different, but I’m hopeful there’ll always be a market for that, as long as people are brilliant and creative, and they want to do good work. That’s what gives me hope. As long as I see that, I’m like, we’re going to come out okay in the end. It may suck for a while, we may have to depose some kings, but it’ll be okay.”
Harvey Smith
The full report covers considerable ground and features commentary from additional industry figures including Shawn Layden, Tim Sweeney, Craig Duncan, and Amir Satvat, who was honored at The Game Awards in 2024 for his contributions to the medium. It is worth several minutes of your time to read in full.
For those looking ahead to what comes next in the industry, 2026 games offer a glimpse into the slate still to come, while players seeking immediate entertainment can turn to guides covering everything from the Best PC games and Free PC games to the finest Best FPS games and epic Best RPGs, all of which remain best enjoyed with friends through the top Best co-op games.
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