The Gaming Industry: Who’s Winning Right Now?
By Niamh Newman
2020 was, to put it lightly, an unpredictable year.
For many businesses, the COVID-19 pandemic was highly detrimental, even resulting in bankruptcy for some, but one sector certainly didn’t suffer the same fate: the gaming industry.
With a larger revenue than the film industry last year, it would be safe to assume that the new year would bring nothing but benefits for those in the field.
However, this has not been the case for everyone. While there are undoubtedly companies who are doing better than ever right now, some developers also appear to have bitten off more than they can chew.
The Lows
One of the most high-profile examples of a failure to infiltrate the gaming industry is Google’s own attempt at a streaming platform, Google Stadia.
Premiering in late 2019, Stadia set out with the promise to allow users to stream games on any console they please, from mobile to PC. However, less than two years later it seems that the company is struggling with the intricacies of game development, as Google has closed its two game studios in Montreal and Los Angeles before they even got the opportunity to release any titles.
In a blog post on their website, Google announced that they would no longer be investing in creating exclusive content Stadia, instead choosing to focus on offering their streaming services directly to game publishers for collaboration.
“You can’t just pour money in one end and watch blockbusting games pour out the other”
However, although proving that the platform failed in its initial aim to provide exclusive games to its users, this decision does not mean that Google is beyond redemption. In fact, 2021 looks promising for Stadia, as they plan to release over 100 new games on the platform in the coming year. This includes standout titles such as FIFA 21, a game that has already amassed a large player base, which could attract a multitude of new users to Stadia hoping to stream the huge title.
Overall, despite perhaps not achieving their initial vision of a revolutionary streaming platform with a plethora of exclusive games, 2021 could be the year that Google Stadia makes its breakthrough as a popular streaming platform.
The decision of a huge corporation like Google not to attempt to venture into game development may have been a wise one, especially when the lack of success garnered by Amazon Game Studios is taken into consideration.
Started by Mike Frazzini, a complete newbie to the video game industry, Amazon Game Studios attempted to design and release a selection of games with the help of expert game developers, determined to make Amazon as successful in the gaming world as it has managed to be in other sectors.
However, it has so far only managed to publish two games: The Grand Tour, a racing game based off the Amazon Prime series which was removed from storefronts within a year and Crucible, an Overwatch-style hero shooter which, after less than favourable reviews from players, met the same fate only 6 months after its release in May 2020.
So, why do Amazon struggle with creating video games? The most likely answer is a combination of two things: their lack of experience in the industry and their obsession with profit over playability.
In a scathing exposé by Bloomberg, it is revealed that Amazon were perhaps too ambitious in their visions for game development, as they were trying to create a ‘billion dollar franchise’ with every game they produced.
As could be expected from Amazon, they attempted to create games which incorporated as many players as possible whilst also being enjoyable to play solo, something which one reviewer noted hindered their newest release Crucible as it tried to reach too many markets and successfully mobilised none. As articulated by The Guardian’s Keith Stuart, ‘you can’t just pour money in one end and watch blockbusting games pour out the other’.
Game development is a craft which requires experience, dedication and attention to detail to pull off, three traits which it would appear Frazzini and his team do not sufficiently possess. Therefore, despite new CEO Andy Jassy insisting that Amazon Game Studios will still be a priority in 2021, perhaps gaming is an industry which corporate giants just can’t hack.
The Highs
As expected, one of the big hitters of the gaming industry in the last few months has been Sony, particularly following the release of the new PlayStation 5.
Boasting the most successful first month in console launch history, the PS5 is causing a commotion amongst console fans right now. Since its release in November last year it has already surpassed the first year sales of its predecessor, the PlayStation 4, having sold 4.2 million units by the end of 2020.
This is substantial in comparison to its rival console, the XBOX series X/S, which sold 2.24 million units despite being released at a similar time. Consequently, it would appear that 2021 is shaping up to be a huge year for Sony as its new console will continue to generate revenue.
Surprisingly, however, this isn’t the console I’m most interested in.
In my eyes, the biggest winner of the gaming industry in 2020 was Nintendo, with its Switch console continuing to break records with its huge uptake and sales.
Following the release of Nintendo’s latest financial report, it was revealed that the device has sold 79.87 million units in just 46 months on the market, meaning it has overtaken the lifetime sales of the 3DS console in four short years.
Despite these impressive figures, the most telling sign of success for me is the continued uptake and momentum surrounding the Nintendo Switch, even though it was first released in 2017.
99% of video game sales in Japan thus far in 2021 have been for the console despite the lack of new releases, with Hideki Yasuda of the Ace Research Institute going as far as to suggest that it has ‘practically eradicated PlayStation’ in Japan.
This is likely attributed to multiple factors, most notably the worldwide national lockdowns as a result of Coronavirus. As it was released between generations of rival consoles XBOX and PlayStation the Switch became the standout console during the pandemic, with profits for the device almost doubling in 2020 as a result.
The release of highly anticipated video game Animal Crossing: New Horizons in March 2020 is also speculated to have contributed to the console’s continuously huge sales, with the game selling 13.41 million copies in its first 6 weeks alone. Overall, Nintendo are undoubtedly playing the long game with the Switch, as its 38% increase in 2021 console sales show no signs of stopping any time soon.
Perhaps Amazon could learn a lesson or two?