At this point, it’s hard to distinguish an area betweenAAA gamesandindie games, with the once-well-respectedAA categoryfizzling into obscurity. Given recent trends, AAA games are not only working on monstrous budgets but appear to take fewer risks than before.
The lack of AA titles and AAA issues became a point of discussion at Gamescom Asia.Gamesindustry.biz reportedon a discussion between Shawn Layden, a formerSonyInteractive Chairman, and Gordon Van Dyke ofRaw Fury. The former Sony exec described exactly why the failure of AAA games and the lack of AA games is ruining the industry.

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In an ecosystem filled with subscription plans andlive services, this conversation is a leading example of how large studios chasing down the white whale has only led to disaster; the search for revenue and profits is undercutting larger goals to pollinate a better ecosystem for gamers.

Former Chairman Shawn Layden first discussed the gaming industry’s current cost and risk analysis. He explained that “the entry costs for making a AAA game are in triple-digit millions now. I think naturally, risk tolerance drops.”
It’s natural that when something becomesmore expensive, the less risk you’re willing to take. That’s why you’re always looking “at sequels, you’re looking at copycats,” because it’s the best way for a title to make its money back and capitalize on previous success.

He shares that, aside from blockbuster hits and Sundance award contenders in the movie industry, there is space for many middle-ground movies in places like streaming services. Still, in games, it’s much different, and as Layden explains,“if we’re just going to rely on the blockbusters to get us through, I think that’s a death sentence."
Yet sadly, Leyden describes that “AA is gone. I think that’s a threat to the ecosystem.” With AAA games taking the majority of gaming audiences, the entire system isleft in shambles.

Going back to monetization, that’s, in a way, exactly how AA benefits the gaming industry as a whole.Lower costs mean AA games are less concerned about monetization and risk analysis, which subversively allows them to take the biggest risks.
The Underappreciated Strengths Of AA Games
AA games have always been able to take that step forward, whereas AAA hasn’t been able to for quite some time. And that’s precisely where Layden gives a hopeful look at how an investor might look at the next AA experience:
If you’re going to pitch me your AA game, and in the first two pages of your deck is your monetization and revenue, subscription scheme, I’m out. Your first page has to be ‘This game needs to be made and here’s why’

AA games likeCuphead,It Takes 2, andLife Is Strangeexcelled because they took risks that many other studios wouldn’t have been able to if they had the pressure of blowing an AAA budget.
Some may argue thatAI could be the saving graceof AAA studios, allowing for loads of work to be done fast or entire creative sectors to be done by a single person, but asLayden shares in the conversation, AI is “just a tool, it’s not a savior.”
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So, AA games are in a position to accomplish things AAAs and indies simply cannot.They are both packed with fun content guided to a larger gaming audience while taking chances that AAA studios would hopefully get inspiration from.
His push for AA makes it clear that Layden believes games should be made to explore the complex medium of design and storytelling,and to get more people playing these games, we “need to get more people making games.”
We highly suggest you read the original discussion on gamesindustry.biz for more information on AA gaming, a comparison of the Western and Asian game markets, and insight into AI technologies.
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