The Console Cycle That Burned Games-as-a-Service

Throughout a quarter-century, game developers have pursued ongoing gaming experiences. Early pioneers like Ultima Online converted retail purchasers into loyal paying users, igniting a wave of copycats striving to replicate those results. Despite many efforts, few managed to dethrone the leaders.

The drive for the next great forever game accelerated with the arrival of billion-dollar titans like Minecraft, several of which have dominated player engagement over many years. Their lasting appeal motivated publishers to take huge bets during the current generation.

Full of capital and self-assurance, prominent companies like Warner Bros. tried to reinvent themselves as GaaS publishers, frequently ignoring their established strengths. Those publishers are known for excellent story-driven experiences, but that success did not guarantee a successful move into the crowded world of online , constantly updated , in-game purchase-driven titles.

Beginning in the launch year of the PS5 and Microsoft's console, dozens of big-budget GaaS games have come and gone. Several have crashed publicly, resulting in widespread job cuts, game cancellations, and studio closures. Following unprecedented expansion, followed risky bets, and fallout that may represent a “right-sizing” of the industry, but also means the elimination of thousands of roles.

What Led to This?

In 2017, big studios like Electronic Arts singled out live-service models as a major priority for their businesses. A certain company's stock price grew dramatically during the previous decade, attributed mostly to the profit system behind its annualized sports franchises. A rival company experienced parallel success, thanks to ongoing titles like Destiny.

Also in 2017, a prominent developer launched its battle royale hit, which quickly started generating enormous sums of revenue monthly. Fortnite’s strategic shift netted the company an estimated massive revenue in its first two years.

While next-gen consoles approached and launched, the domestic games sector jumped from over forty-five billion in that time to an even larger amount in the following year, largely due to more purchases as a result of the worldwide lockdowns. In the next period, the U.S. market attained $61.7 billion. Developers, striving to carve out their place in the GaaS arena, and aided by cheap capital, swiftly scaled up, bringing on many thousands of new employees and approving titles — a large number ongoing experiences. The outcomes of these choices would have a long-term effect for the foreseeable future.

The Disappointments Happened Fast

Square Enix tried to replicate an existing hit's achievements with games like Babylon’s Fall, each of which disappointed. Another company attempted to branch out beyond its narrative , single-player , and casual releases with a Destiny-like, and a derived brawler. Production has ended on each. Yet another publisher abandoned the persistent online game Hyenas after an extended period of production, before the game even released. Even indies attempted to succeed in the live-service market; a few releases are also victims of the GaaS risk. One developer's current monetary troubles can be blamed on the failure of an FPS to transform users of a popular game into GaaS supporters.

Perhaps the largest gamble on games as a service came from Sony Interactive Entertainment, which acquired Destiny developer Bungie for billions and then declared plans to launch numerous GaaS titles by the deadline. Among these were a eventually abandoned multiplayer game using a well-known franchise, a allegedly scrapped title using a different IP, and the infamous Concord, which closed and saw its whole team closed down just weeks after launch.

The publisher has since scaled down from that ambitious plan, serving its fan base with the premium offline experiences it's known for, like Ghost of Yotei. The future of teased live-service games like FairGame$ remains unknown. The company's upcoming major bet, the new title, will be a significant challenge for the troubled developer.

Why Did They Flop?

Part of the reason is that a lot of players have already invested immensely, through commitment and expenditure, into proven hits like Call of Duty. The war for the forever game, for numerous users, was largely settled in the prior console cycle. A lot of those older games still top monthly player charts across PC, Switch, PS5, and Microsoft platforms.

New Breakthroughs

Some later live-service titles have succeeded. A leading studio is achieving good numbers with each of Battlefield 6, titles that have been carefully refined and guided by the loyal player bases behind them. Another publisher built a following with Marvel Rivals, blending an affinity with the comic company and the proven mechanics of Overwatch. Sony and Arrowhead Game Studios succeeded with Helldivers 2, using a combination of polished systems and smart community engagement.

Numerous developers seem to have understood the reality: The amount of time and money to {

Richard Mitchell
Richard Mitchell

A passionate gamer and tech writer with over a decade of experience in reviewing video games and analyzing gaming trends.