Matthew Karch, head of Saber Interactive, recently shared his perspective on the future of the gaming industry, predicting the decline of the high-budget AAA model. Karch, whose company developed Warhammer 40,000 Space Marine 2, stated that the era of games costing $200-$400 million is unsustainable and detrimental. He believes these massive budgets are a significant contributor to the recent wave of layoffs in the gaming industry.
The term "AAA," once synonymous with high-quality, high-budget, low-risk projects, is now considered obsolete by many developers. It's increasingly associated with profit-driven competition that sacrifices quality and innovation.
Revolution Studios co-founder Charles Cecil echoed this sentiment, calling the term "silly and meaningless." He attributed the negative shift in the industry to the massive investments made by major publishers. Ubisoft's Skull and Bones, marketed as a "AAAA" title, is cited as a prime example of this trend.