Publisher of Space Marine 2 commends Oblivion Remastered, FromSoftware, and Clair Obscur: Expedition 33, lauding French developers, as evidence that the gaming industry maintains its potency amidst layoffs and studio shutdowns.
The game industry, as described by Geoffroy Sardin, the CEO of Focus Entertainment, can be divided into two segments: AAA and AA/indie. Sardin believes that the AAA segment is suffering from over-investment and skyrocketing costs, potentially reaching $300 million or more, while the AA and indie game segments have more room for success.
This approach to the game industry is reminiscent of FromSoftware, a company that Sardin commends for its focus on niche audiences and community collaboration. FromSoftware's strategy involves extensive beta testing to ensure games resonate with their core audience before considering wider appeal. This strategy is evident in the success of games like Demon's Souls, which has attracted a dedicated fanbase.
Sardin's preference for Focus Entertainment to produce more niche titles is further supported by the success of Space Marine 2, published by Focus Entertainment. The game has attracted 7 million players, proving the value of catering to a niche audience. Another example of this strategy's success is Clair Obscur: Expedition 33, Monster Hunter Wilds, and Elder Scrolls: Oblivion, which have recently achieved strong sales numbers.
The success of niche titles could hold potential for future mainstream success, but Sardin may prioritize producing more such games. This approach is a departure from the creation of a game like Elden Ring, which FromSoftware launched to critical acclaim and sold over 12 million copies worldwide within two weeks.
Sardin expresses a concern about the "over investment" in the game industry leading to layoffs and studio closures. However, he believes that the industry has experienced a phase of stabilization following years of growth. This stabilization is evident in the healthy performances of many game developers and publishers, including Take-Two Interactive, which reported an $5.5 billion revenue in 2024 with an 18% year-over-year growth.
The enduring popularity of established franchises, such as Nintendo’s Mario Kart 8 Deluxe and The Legend of Zelda: Breath of the Wild, also bolsters the industry's stability. Similarly, the mobile esports scene was dominated by titles like PUBG Mobile and Honor of Kings, reflecting the growing influence of mobile gaming in competitive arenas.
In 2022, these success stories reaffirmed the viability of high-quality RPGs, franchise IP power, mobile competitive gaming growth, and the enduring value of established game series to publishers and the market. As Focus Entertainment continues to embrace the niche market and community collaboration, it remains to be seen how this approach will shape the future of the game industry.
- In contrast to the AAA segment, niche titles, such as Space Marine 2, have the potential to attract significant player bases, as demonstrated by the 7 million players who have joined.
- Sardin admires FromSoftware's strategy of extensive beta testing to cater to their core audience before considering wider appeal, as seen in the success of Demon's Souls.
- The game industry could potentially benefit from the success of niche titles, even setting the stage for future mainstream success, but Sardin may still favor producing more such games.
- The success of Elden Ring, sold over 12 million copies worldwide within two weeks, is a notable departure from Sardin's preference for niche titles at Focus Entertainment.
- The game industry, though facing concerns over over-investment and the potential for studio closures, has shown signs of stabilization after years of growth, as indicated by the healthy performances of companies like Take-Two Interactive.
- Established franchises, such as Nintendo’s Mario Kart 8 Deluxe and The Legend of Zelda: Breath of the Wild, have bolstered the industry's stability, while mobile titles like PUBG Mobile and Honor of Kings have influenced the growing mobile gaming scene in competitive arenas.
- With success stories in RPGs, franchise IP power, mobile competitive gaming growth, and the enduring value of established game series, 2022 reaffirmed the viability of these trends in the game industry.
- As Focus Entertainment continues to foster the niche market and community collaboration, their approach will yet influence the future direction of the game industry.
