Many industry players have yet to adapt, struggling to grasp the rationale behind developing these types of video games.
Industry analyst Joost van Dreunen recently shared his perspective on the current state of gaming. He explored why breakout hits like Hollow Knight: Silksong and Balatro defy traditional business logic and, from a corporate standpoint, technically “shouldn’t exist.”
According to him, the sector is undergoing a transformation reminiscent of the shift seen in the film industry decades ago:
The current surplus of content, including free-to-play titles, serves as both a massive opportunity and a significant challenge. A clear parallel can be drawn with 1950s Hollywood, which was defined by high-budget spectacles and major film stars. By the 1960s, however, television had popularized a lower-budget, more accessible format of entertainment.
Today’s market is no longer dominated solely by massive blockbusters like Call of Duty or GTA; it also thrives on accessible mobile experiences like Candy Crush. These titles operate on entirely different monetization frameworks:
This shift is fundamentally reshaping the landscape and disrupting established revenue streams. Is this problematic? Yes, because legacy companies find it difficult to pivot. Are we seeing more anomalies? Absolutely. The triumphs of Balatro and Silksong illustrate this; from a strictly traditional financial perspective, these games are irrational. Yet, they are deeply cherished, commercially viable, and widely celebrated.
The analyst further observed that many of the titans that once governed the industry have either been absorbed through acquisitions or have vanished entirely:
We are witnessing a slow-motion revolution in how games are developed, monetized, and consumed. While this is painful for the workforce—leading to layoffs and structural adjustments—these changes are unavoidable. As gaming has expanded to such a massive scale, the underlying economic principles have shifted irrevocably.
Joost van Dreunen posits that “low-tech elements often serve as a more compelling design factor than cutting-edge technology.” He expressed enthusiasm for the growing trend of “lo-fi” games that foster meaningful social experiences among friends.
Source: iXBT.games