MW Videogame giants are spending more money but losing players - and profits

By Jurica Dujmovic

Sony, Electronic Arts and Ubisoft reflect an industrywide misunderstanding (or perhaps disregard) of what gamers value

Players are increasingly sensitive to and irritated by videogames that feel forced or inauthentic.

In recent years, the videogame industry has witnessed a significant shift in the relationship between major publishers and their core audience. Giants such as Ubisoft Entertainment (FR: UBI), Sony Group $(SONY)$ (JP: 6758) (SONY), and Electronic Arts $(EA)$ (EA) have become increasingly disconnected from the very players they claim to entertain. This divide stems from myriad factors, including changing gamer preferences, questionable business strategies and controversial creative decisions.

Repetitive gameplay and uninspired mechanics of tired formulas have left players fatigued and craving innovative and authentic experiences - the shift to which many major publishers are still struggling to adapt. One notable trend is the waning popularity of "live service" games - titles designed for endless play and continuous monetization. "Live service" games were once hailed as the future of gaming. However, players are increasingly turning away from games that demand constant time investment without offering meaningful progression or engagement.

On the other hand, games such as "Elden Ring" and "God of War: Ragnarok," which offer rich, single-player experiences that prioritize quality over endless looping gameplay are thriving.

As major publishers struggle, indie developers have seen a surge in popularity. Games such as "Hades," "Celeste" and "Hollow Knight" have resonated strongly with players, demonstrating that tightly focused, authentic experiences can often outshine big-budget releases.

Ubisoft: A study in disconnect

Perhaps no other company better exemplifies the challenges facing major publishers than Ubisoft. Once a darling of the industry, the French videogame publisher has found itself in increasingly troubled waters.

Ubisoft's financial woes are closely tied to a series of creative decisions that have alienated its core audience. One such example is "Star Wars Outlaws," which has significantly underperformed expectations. A report by Insider Gaming paints an even grimmer picture - according to the report, "Star Wars Outlaws" managed to sell just 1 million copies in the month after its launch late last August.

This disappointing performance is particularly concerning given the game's massive budget, with Ubisoft reportedly investing around $300 million into its development. Abysmal sales figures can be attributed to several factors, including a multitude of creative restrictions that resulted in a world that felt sanitized, censored and less engaging compared with other open-world experiences.

Another example is "XDefiant," Ubisoft's free-to-play shooter game. Despite a strong launch with more than 11 million unique players, Ubisoft announced late last year that it would shut down "XDefiant," highlighting the challenges for new entries in the saturated shooter-game market. The game faced criticism for lacking a strong identity and failing to offer groundbreaking features that could pull players away from established titles.

It's worth noting that not all of Ubisoft's recent ventures were failures. "Assassin's Creed Mirage," a return to the series' roots, managed to turn a profit, generating $250 million in revenue. This success suggests that there's still a strong market for well-crafted, focused experiences that respect the franchise's core identity.

Despite this glimmer of hope, Ubisoft's future strategy raises eyebrows among industry observers. The company plans to release 10 "Assassin's Creed" titles in the next five years, a decision that has been met with skepticism. Critics argue that this aggressive release schedule is unlikely to resolve the company's core issues and may exacerbate franchise fatigue and disconnect from their audience. Ubisoft's stock price took another hit recently after the company said that its much-anticipated "Assassin's Creed Shadows" offering was being delayed for a second time; it's now slated to debut in March.

Industry struggles

To survive and thrive, publishers will need to rebuild trust.

Ubisoft's struggles are not unique. Both EA and Sony have faced similar criticism and financial consequences when their games failed to meet players' expectations. EA's "Battlefield 2042" was lambasted for lacking core features and introducing unwanted hero-based systems, resulting in a 90% player drop within months and significant revenue losses. "Anthem," another EA title, failed due to shallow, unfinished content and rigid adherence to its live-service model.

Sony blowing $400 million on its failed "Concord" offering exemplifies the dangers of giving priority to stale mechanics, lackluster gameplay and political correctness over innovation and player engagement. Its development reportedly was marred by a "design by committee" approach that stifled creativity and forced progressive representation, leading to characters who lacked relatability, depth and originality. The focus on politics over player preferences, combined with lackluster and uninspired gameplay, resulted in "Concord" being pulled from sales shortly after release.

This industrywide trend points to a growing fundamental misunderstanding (or perhaps disregard) of what current-era gamers value. Players are increasingly sensitive to and irritated by narratives that feel forced or inauthentic. They also dislike worn and tired game mechanics and seek games that organically integrate story elements in meaningful and authentic ways, rather than check off inclusivity boxes. Gamers crave experiences that break the mold in new and inspiring ways, rather than tired cookie-cutter gameplay loops, devoid of fun and creativity.

To justify their missteps and uncreative decisions, major publishers often claim they're making games that speak to contemporary audience and reflect their sensibilities. Sales figures tell a different story. Their "modern demographics" appear to be little more than a vocal minority, whose influence in social-media discourse far outweighs their actual market impact. The discrepancy between perceived demand and actual market reception provides a clear explanation for the current state of the gaming industry, where traditional audiences continue to drive the bulk of revenue despite being increasingly alienated by attempts to appeal to a niche and more progressive player base.

The path forward for major publishers is clear: To survive and thrive, publishers will need to rebuild trust by embracing the values and identities that resonate with their player base. This means moving away from imposed narratives and forced political correctness in favor of authentic storytelling and gameplay that respect players' intelligence. Companies should focus on creating protagonists and stories that gamers can genuinely connect with.

To achieve this, publishers must engage in more open and honest communication with their communities through transparent development processes, clear explanations of creative decisions, and a genuine willingness to incorporate player feedback. Instead of trying to proselytize their audience, companies should listen to and learn from the gamers who have supported their franchises for years.

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-Jurica Dujmovic

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February 22, 2025 13:08 ET (18:08 GMT)

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