The video game industry’s current turmoil, marked by widespread layoffs, is believed to stem from the conflicting interests between corporate priorities and the unpredictable nature of game development. Snow Rui, CFO at Hooded Horse, the publisher of Manor Lords, suggests that much of the unrest is due to public companies prioritizing predictable revenue streams over the realities of game creation, where both timelines and outcomes can be highly unpredictable.
Public companies seek consistent financial growth every quarter, which clashes with the inherently variable nature of game development. Revenue surges typically occur during game launches and sales windows, making it hard for large corporations to forecast success.
This unpredictability means that while games like Manor Lords, a hit despite its niche genre and being developed by a single person, can succeed unexpectedly, failures are just as unpredictable, making it difficult for corporations to maintain steady financial performance.
The challenge extends to indie developers who may be impacted by these corporate-driven decisions. However, Rui highlights that this uncertainty may also work against the publishers themselves, as the rise of self-publishing provides developers with a viable alternative to traditional publishing.
With knowledge of self-publishing more accessible than ever, developers may opt to publish independently, prompting publishers to offer more attractive deals and prove their value.
Hooded Horse, Manor Lords’ publisher, seems to navigate this tension differently than larger companies. CEO Tim Bender emphasized that their focus is not solely on profits, allowing them to prioritize game quality and give titles like Manor Lords the necessary time for development. This approach contrasts with many larger publishers, who may not provide such flexibility due to the financial pressures they face.
Ultimately, as self-publishing becomes more viable for developers, the traditional publisher-developer relationship may shift. If developers continue to move toward self-publication, the industry’s dynamics could change, potentially making the current issues with corporate-driven unrest less relevant in the long term.
