(Image credit: Epic Games)
Shawn Layden, former head of PlayStation, has expressed serious concerns about the escalating costs of developing AAA games. Highlighting how rising expenses can stifle creativity, Layden noted that as budgets swell, developers’ willingness to take risks diminishes. In a chat with YouTube influencer Destin Legarie, Layden elaborated: ‘I’m deathly concerned about it. I think it’s an existential threat to gaming that we see these ballooning budgets for AAA games. We find that as the budget goes up, the risk tolerance goes to zero pretty fast.’
While acknowledging today’s gaming triumphs, Layden argued: ‘Sure, there are successes, but let me show you the buckets of not-so-great ones.’ He urges people not to dwell on past failures but to learn from them, suggesting the need to either reduce costs or tap into a revitalized AA market. ‘How does that come back to life?’ he questioned.
Layden also addressed the post-pandemic trend towards live-service games, noting the industry’s scramble to capitalize on it. He posed critical questions: ‘What we’re learning over time – and maybe time was the only teacher here – how many games of service can really be viable in the market at the same time? How many ‘forever games’ can one person actually play, and then how do you grow a market against that?’
Despite many attempts, breaking into the realm of successful titles like GTA Online, Fortnite, and Apex Legends remains a steep challenge. Players are often loyal to their chosen games, creating a ‘switching cost’ that deters them from trying newcomers. Layden illustrated this with a scenario involving a Destiny 2 player reluctant to switch games due to friends’ preferences, reinforcing the idea: ‘Hey, I’m not feeling it either. OK, we’ll just stay where we are.’
This challenge of juggling multiple live-service games is familiar to many, as sticking with time-invested favorites feels natural. This loyalty explains why new live-service games sometimes falter despite rare successes like NetEase’s Marvel Rivals. Layden also criticized extensive game durations, saying, ‘I haven’t even opened Red Dead Redemption 2, because I don’t have 90 hours.’
For further insights into gaming trends, you can explore Layden’s other comments and opinions shared within the community.