Former PlayStation executive Shawn Layden, who spent 30 years with Sony, has raised concerns about the current state of the gaming industry, particularly the dominance of big-budget blockbuster games. Speaking at Gamescom Asia during a conversation with Raw Fury co-founder Gordon Van Dyke (via GamesIndustry.biz), Layden highlighted the disappearance of mid-tier “AA” studios and the industry’s increasing focus on profitability over creativity.
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Layden lamented the shift from asking basic but important questions like “Is it fun?” to a heavier emphasis on monetization and revenue models. In the past, game development allowed for more experimentation and higher risk tolerance because production costs were significantly lower. “You didn’t worry so much about the end piece, for better or for worse,” Layden said, explaining that lower production costs meant developers could take more creative risks.
However, in today’s market, the entry cost to make a AAA game has skyrocketed to “triple-digit millions.” This steep rise has led to the proliferation of sequels and copycat titles, where financial success is prioritized over innovation. “We’re seeing a collapse of creativity in games today [with] studio consolidation and the high cost of production,” Layden explained.
He noted that the “AA” tier of studios that once produced creative, mid-budget titles has largely disappeared. Companies like Interplay, THQ, Gremlin, and Ocean used to thrive in this space, offering unique games that stood between indie titles and blockbuster franchises like Call of Duty or Grand Theft Auto. According to Layden, this loss represents a major threat to the gaming ecosystem. Without the middle tier, the industry faces a stark divide between big-budget AAA games and small indie projects, with little room for innovation in between.
When asked if indie games could serve as a “beacon of hope,” Layden agreed but emphasized that indie titles cannot single-handedly fill the void left by the collapse of AA studios. He praised the advancements in game development tools, such as Unreal Engine and Unity, which have allowed even small indie studios to create high-quality games. Still, Layden expressed concern about the industry’s overall direction, especially if it continues to rely solely on blockbuster titles. “If we’re just going to rely on the blockbusters to get us through, I think that’s a death sentence,” Layden warned.
Layden called for more attention and support for smaller-budget, creative games, which he believes can push the industry forward. “Now if we can just get a bit more interest and excitement and exposure for these lower-budget, but super creative and super unusual [type] of games, I’d like to see more of that,” he said.
For Layden, AA games hold a crucial “natural niche” within the industry by introducing fresh and innovative experiences. However, he stressed that creativity must come first. “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’,” he said.
Layden concluded by urging the industry to prioritize passion over profits, warning that putting revenue schemes ahead of creativity will stifle innovation and harm the gaming ecosystem in the long run.
