The Console Cycle That Scorched Live-Service Gaming

For more than 25 years, video game creators have chased after live-service games. Groundbreaking releases like EverQuest transformed retail purchasers into long-term subscribers, igniting a period of followers attempting to emulate their achievements. Despite numerous endeavors, few managed to overthrow the top dogs.

The pursuit for the next enduring hit accelerated with the arrival of high-revenue titans like Grand Theft Auto Online, several of which have dominated gamer attention for years. Their lasting appeal inspired companies to take huge bets during the latest hardware era.

Flush with funds and confidence, leading firms like Sony sought to remake themselves as ongoing-game creators, repeatedly ignoring their own identities. Those publishers are known for excellent story-driven titles, but that expertise failed to secure an easy shift into the competitive world of online , forever-updated , in-game purchase-driven titles.

Beginning in 2020 of the PlayStation 5 and the new Xbox, dozens of ambitious GaaS titles have appeared and vanished. Many have flamed out publicly, leading to large-scale firings, title abandonments, and company collapses. After huge increases, came unwise investments, and aftermath that may represent a “right-sizing” of the industry, but also equates to the loss of thousands of positions.

What Led to This?

Around that period, leading companies like Ubisoft identified live-service models as a major priority for their operations. One publisher's market value grew dramatically during the previous decade, due largely to the revenue model behind its annualized sports franchises. A different studio had similar growth, because of persistent games like Overwatch.

Also in that period, a major studio launched the popular title, which rapidly started generating hundreds of millions of revenue monthly. Its battle royale pivot earned the developer an estimated massive revenue in its first two years.

While a new generation hit the market, the domestic games sector jumped from a huge sum in 2019 to an even larger amount in 2020, largely thanks to more purchases as a result of the worldwide lockdowns. In the next period, the American industry hit a record peak. Game publishers, aiming to carve out their niche in the ongoing games sector, and boosted by low interest rates, swiftly scaled up, bringing on thousands of staff members and greenlighting games — several GaaS titles. The results of such moves would have a lasting impact for years to come.

The Disappointments Happened Fast

One major publisher sought to mimic an existing hit's achievements with titles like Babylon’s Fall, each of which disappointed. Another company attempted to expand beyond its story-driven , solo , and family-friendly Lego games with another ongoing experience, and a inspired action game. Work has stopped on each. Yet another publisher scrapped the live-service shooter Hyenas after a long time of work, before the game hit the market. Even indies sought to succeed in the GaaS space; several titles are also examples of the GaaS risk. A certain studio's latest economic difficulties can be blamed on the failure of an action game to convert players of a popular game into ongoing-game enthusiasts.

Possibly the most significant investment on GaaS came from a major hardware maker, which purchased Destiny creator Bungie for $3.6 billion and then revealed plans to publish more than 10 GaaS titles by the target year. Among these were a eventually abandoned online title based on a well-known franchise, a reportedly abandoned title using a different IP, and the infamous the first-person shooter, which ceased operations and saw its complete company closed down just a brief period after debut.

Sony has since pulled back from those lofty goals, catering to its fan base with the high-quality story-driven games it's famous for, like Ghost of Yotei. The fate of announced GaaS titles like FairGame$ remains unclear. Their upcoming major bet, Marathon, will be a major test for the challenged studio.

What Caused the Failures?

One key factor is that many consumers have already sunk significant time, in terms of hours and cash, into established games like Minecraft. The competition for the forever game, for a lot of users, was largely settled in the prior console cycle. A lot of those older games still top monthly player charts across computer, Nintendo, PlayStation, and Microsoft systems.

Modern Hits

Some later ongoing experiences have found an audience. One publisher is finding early success with the Battlefield 6, titles that have been thoroughly playtested and guided by the loyal player bases behind them. A separate studio built a following with Marvel Rivals, merging an affinity with Marvel’s brand and the tried-and-tested gameplay of Overwatch. Sony and a studio succeeded with their cooperative shooter, using a mix of refined gameplay mechanics and smart community engagement.

Many game makers seem to have gotten the message: The available hours and dollars to {

Alyssa Silva
Alyssa Silva

Elara is an experienced editor and novelist passionate about helping new writers find their voice and navigate the publishing world.