The Console Cycle That Scorched Games-as-a-Service

Throughout a quarter-century, game developers have pursued live-service games. Early pioneers like EverQuest transformed one-time buyers into long-term subscribers, igniting an era of copycats trying to emulate their achievements. In spite of countless efforts, scarcely any managed to overthrow the top dogs.

The drive for the upcoming great forever game intensified with the emergence of billion-dollar titans like Fortnite, many of which have led user activity over many years. Their persistent dominance motivated developers to place massive bets during the current generation.

Loaded with funds and arrogance, prominent firms like Sony attempted to remake themselves as live-service providers, often disregarding their own brands. Those studios are famous for masterful story-driven titles, but those skills failed to secure an easy shift into the competitive arena of online , forever-updated , in-game purchase-driven video games.

Beginning in the release period of the PlayStation 5 and Xbox Series X, dozens of high-stakes ongoing titles have launched and failed. Many have collapsed spectacularly, resulting in large-scale firings, project terminations, and developer shutdowns. After record growth, came unwise investments, and consequences that may represent a “adjustment” of the industry, but also means the elimination of many thousands of roles.

How Did We Get Here?

Around 2017, big studios like Ubisoft identified live-service models as a key priority for their operations. Their worth grew dramatically during the previous decade, thanks in part to the revenue model behind its yearly sports games. Another studio had comparable expansion, thanks to persistent games like Overwatch.

During that period, Epic Games launched the popular title, which swiftly started generating vast amounts of revenue monthly. Its strategic shift secured the studio an projected massive revenue in its first two years.

As the latest hardware hit the market, the American gaming industry surged from a huge sum in that time to $58.2 billion in the next period, partly because of increased spending stemming from the worldwide lockdowns. In the next period, the domestic sector reached $61.7 billion. Game publishers, hoping to secure their place in the GaaS arena, and aided by favorable economic conditions, rapidly grew, employing thousands of new employees and greenlighting titles — many of them GaaS titles. The consequences of these choices would have a lasting impact for years to come.

The Disappointments Came Quickly

One major publisher attempted to replicate a popular title's success with games like Marvel’s Avengers, both of which underperformed. Another company attempted to branch out beyond its story-driven , single-player , and casual releases with another live-service shooter, and an influenced fighter. Development has stopped on the two. Sega scrapped the persistent online game Hyenas after years of production, prior to the game actually launched. Even indies sought to crack the GaaS space; a few releases are also casualties of the ongoing-game bet. A certain studio's recent economic difficulties can be attributed to the lack of success of an FPS to turn fans of a popular game into GaaS supporters.

Perhaps the largest investment on live-service titles was made by a console manufacturer, which purchased the popular franchise maker the company for $3.6 billion and then revealed plans to release over a dozen ongoing experiences by 2026. This encompassed a eventually abandoned social experience based on a well-known franchise, a supposedly abandoned title using a different IP, and the ill-fated Concord, which closed and saw its whole team closed down just a short time after launch.

Sony has since retreated from those lofty goals, serving its audience with the high-quality story-driven games it's renowned for, like Astro Bot. The future of announced GaaS titles like one upcoming title remains uncertain. The company's upcoming major bet, the new title, will be a significant challenge for the struggling developer.

Why Did So Many Fail?

One key factor is that many consumers have already sunk significant time, through commitment and expenditure, into proven hits like Apex Legends. The battle for the forever game, for numerous users, was already decided in the last hardware era. Several of those long-running hits still lead engagement rankings across PC, Switch, PS5, and Microsoft systems.

Modern Hits

Several newer ongoing experiences have broken through. A major company is achieving good numbers with the Skate, titles that have been thoroughly playtested and influenced by the passionate communities behind them. A different company found an audience with a superhero title, merging a familiarity with the comic company and the tried-and-tested gameplay of Overwatch. The publisher and a studio broke through with their cooperative shooter, using a combination of polished systems and effective user outreach.

Numerous developers seem to have learned the lesson: There’s only so much resources and attention to {

Veronica Grant
Veronica Grant

A cultural anthropologist and travel writer specializing in Nordic regions, with a passion for documenting local traditions and modern innovations.