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Matthew Karch, the head of Saber Interactive, recently shared his perspective on the future of the gaming industry, asserting that the era of high-budget AAA games is drawing to a close. Known for developing Warhammer 40,000 Space Marine 2, Karch believes that the exorbitant costs associated with these games, ranging from $200 to $400 million, are neither necessary nor appropriate. He went further to suggest that these massive budgets might be the primary contributor to the widespread job losses seen in the gaming sector. In his words, "I think if anything has contributed to job losses [mass layoffs in the game industry] more than anything else, it's a budget of a few hundred million dollars [for games]."
The term "AAA" has lost its former glory, according to many in the game development community. Originally, it denoted games with substantial budgets, high quality, and minimal risk of failure. However, the term has now become synonymous with a race for profits, often at the expense of quality and innovation. Charles Cecil, co-founder of Revolution Studios, echoed this sentiment, describing the term as "silly and meaningless." He highlighted that the influx of large investments from major publishers has led to a shift in the industry, but not for the better. Cecil remarked, "It's a meaningless and silly term. It's a holdover from a period when things were changing, but not in a positive way."
A prime example of this shift is Ubisoft's Skull and Bones, which the company boldly labeled as a "AAAA game." This move further underscores the industry's changing dynamics and the evolving perception of what constitutes a high-caliber game.
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