Via slashdot, Microsoft has hired a really influential analyist Mathew Ball (who I had never head of personally) to get their X-Box division out of its slump. They certainly need to do something, because the X-box is clearly getting its rear end handed to it on a plate by the PS5 and Switch 2. However, that's not what I found interesting enough to put up one of my rare posts.
The article links out to his slide presentation on the state of gaming in 2026. I highly recommend it if you haven't seen it yet, it's absolutely fascinating. Among other things, it explains why layoffs are happening all over the US gaming development sector despite gaming revenue being at an all time high globally.
My major takehomes from it:
1. US developers are getting crippled by their myopia. Developing games only for peaple with the very highest end hardware in the Mobile and PC space, or that can afford a modern console, is really short sighted because it cuts you almost entirely out of the markets that are growing the fastest (hint, it aint here in the US). There are also entire popular genres of game (like the erotic dating sim/ shooter) doing really well I personally have never even heard of, and I am pretty sure are not being developed here.
2. Many peaple enjoy setting piles of money on fire. A lot of the money that peaple used to spend on games is now getting farted away in various kinds of gambling sites, such as prediction markets, sports betting and straight up internet gambling. I guess it's the same concept as gacha games, just with the game in the middle cut out . . .
3. Invest in Roblox!
Also, I promise I will be posting about MMOs again at some point :-)
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