- The traditional model of exclusive AAA games is no longer relevant in 2024.
- Exclusivity limits sales and makes it harder to recoup massive investments.
- Microsoft and Sony are increasingly releasing their games on multiple platforms.
This summer’s announcements have me eagerly awaiting the Xbox Showcase on June 9. One major talking point is Microsoft’s decision to put its games on PlayStation consoles.
I am wondering if classics like Halo, Forza, or Gears of War will hit PS5. Plus, there’s excitement about upcoming titles like Fable. For years, console manufacturers have relied on exclusive titles to compete with each other.
However, with changing player demands and economic factors, this strategy isn’t cutting it anymore. It’s clear: AAA exclusivity has no spot in modern gaming.
Why it matters: I believe the dated concept of AAA game exclusivity must disappear. In 2024, it’s time to tear down these walled gardens and let gamers play what they want, where they want.
Ballooning Costs and Diminishing Returns
The gaming market is massive. It’s bigger than Hollywood, and it’s only getting bigger. By limiting their reach, developers and publishers are leaving money on the table. Why settle for a slice of the pie when you can have the whole thing?
Now let’s talk about the financial cost of developing a big AAA title. Shawn Layden, a former PlayStation boss, recently pointed out that the soaring costs of developing major titles often exceed $200 million and how exclusivity harms sales.
With such hefty investments, keeping a game exclusive to one platform is financially risky. The fear of not reaching enough players to make a profit is real. As Layden rightly said about big-budget titles, “Exclusivity is your Achilles’ heel.”
Take Spider-Man 2, for example. It reportedly cost over $300 million to develop. While it’s sold millions, the profit margins are narrow, especially with revenue-sharing deals with licensors like Marvel.
Economic Pressure
In addition to soaring budgets, the gaming industry is feeling the pinch of wider economic challenges. The console market has hit a wall, with global sales hovering around $250 million in recent years.
This makes it crucial for developers to find new ways to make money and reach fresh audiences beyond the usual console crowd. Plus, the global economic slump affects people’s game spending power.
Gamers are pickier about what they buy and less loyal to one platform than before. Personally, I want the freedom to play my favorite games on any device I choose without being stuck in one ecosystem.
Multiplatform Strategies on the Rise
It used to be common knowledge that exclusive games could keep platforms going strong. These must-have titles were the driving force behind console sales, leading to more game purchases and a profitable setup for third-party publishers. But what changed?
The days of franchises being exclusive to one console are fading. Microsoft has released games on both Xbox and PC since the mid-2010s, starting with the Windows Store and moving to Steam.
Sony hopped on board in 2020 by bringing Horizon Zero Dawn to Steam. While Sony still mainly focuses on PlayStation releases, it’s starting to bend the rules by releasing AAA titles on PC a year after launching on their console.
Moreover, Square Enix is shaking things up by going all-in on multiplatform releases after some PlayStation-only deals didn’t bring great results. Sony had Helldivers 2 launch day one on Steam, and it had twice as many players on PC than PlayStation at one point.
This proves that publishers can reduce financial risks by releasing big-budget titles on multiple platforms, spreading out the high costs of development, and reaching new markets.
Recently, Microsoft hinted at Xbox going multiplatform by releasing Sea of Thieves on PlayStation.
The Nintendo Case
Nintendo stands apart from the crowd by spending less on development. Instead of competing in the graphics race, Nintendo prioritizes games with smart design but manageable scope made by smaller teams.
Even big titles like Zelda: Tears of the Kingdom cost less than similar AAA releases on other consoles. Nintendo’s strength lies in its exclusive catalog, a strategy that’s paying off with the Switch’s huge success.
However, as costs rise, the Switch 2 will have to do just as well to resist the push towards releasing games on multiple platforms.
The bottom line is that the days of big-budget exclusive games ruling the gaming world are fading. Even with potential price hikes and efforts to scale back game scope, the business logic supporting exclusive games has fundamentally changed.
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