2023 was a big year for video games, with blockbusters like The Legend of Zelda: Tears of the Kingdom and Baldur’s Gate 3 captivating gamers. But 2023 has also brought a series of seismic changes to the industry itself, shaking up the gaming world in potentially good and bad ways.
From mass layoffs to Microsoft’s complete acquisition of Activision Blizzard and the growing reality of generative AI tools, 2023 has left an impact that will be felt in the space for years. Here are some of the biggest stories in video games this year.
Microsoft buys Activision
Giant Xbox has finally cleared regulatory hurdles in its year-and-a-half effort to acquire Call of Duty publisher Activision Blizzard, which was completed this fall, giving Microsoft another massive set of studios and gaming intellectual property to add to your list.
Through the $68.7 billion deal, Microsoft now owns Activision, Blizzard Entertainment, mobile studio King, and all of their various teams. In addition to Call of Duty, Microsoft’s Xbox now controls huge franchises like Diablo, Candy Crush, Warcraft, and Overwatch. This is in addition to Microsoft’s recently acquired intellectual property, including Minecraft and The Elder Scrolls.
Microsoft has agreed to keep Call of Duty on competing consoles for the next 10 years, but the fate of the other franchises remains to be seen. Xbox users should benefit, as several Activision Blizzard games are expected to arrive on Xbox Game Pass shortly, but owners of other consoles could see a decline in releases over the next few years as Microsoft’s consolidation continues.
Xbox plan losses
This is the good news for Microsoft. The bad news is that confidential documents uploaded as part of the SEC’s failed attempt to stop the deal with Activision were accidentally made available to the public, ruining Microsoft’s big Xbox plans for the next few years.
It’s no surprise that Microsoft is thinking about its next Xbox console, but now we have some details on how the tech giant is thinking about the hardware. The next generation Xbox is expected to launch in 2028 and feature a hybrid cloud model, harnessing the power of on-premises hardware and cloud computing to produce more powerful experiences. And one slide in the leaked presentation highlighted the possibility of a cryptocurrency wallet for Xbox, so that’s an intriguing twist.
The slides suggest that updated current-gen Xbox hardware will launch in 2024, including faster drive-less Wi-Fi.
Layoffs devastate the sector
2023 has proven to be a tough year for many people making video games, with around 9,000 developers laid off during the year. Nearly every major publisher and studio has been hit by layoffs this year, from Epic Games and Riot Games to Electronic Arts, Ubisoft and Activision Blizzard.
Some of these appeared to be the result of changing trends in the industry, while others were accused of “downsizing” after taking on too much following increased demand for games during the pandemic lockdown. Wider economic winds have likely played a role as well, and almost no tech sector has been safe from such changes, but an industry built around fun and entertainment has proven woefully miserable for many creators in 2023.
Artificial intelligence appears and players don’t like it
Another factor leading to headcount reductions in 2023 may have been the rise of generative AI tools, although it is unclear how many jobs are affected by these developments at this time. In one particular example, studio Mindark announced layoffs saying it would adopt AI tools to reduce costs, but there haven’t been many really obvious compromises like that yet.
However, there is growing fear in the industry that AI tools will render some current jobs in video games useless and do away with skilled professionals in favor of low-cost generative programs.
Big publishers like Ubisoft, Microsoft and Blizzard are embracing AI tools with the idea that they will help humans make better games more efficiently, but concerns about cutting costs remain.
Many gamers have complained loudly about games made with artificial intelligence tools and have opposed companies (like Microsoft) that have announced such plans. It’s unclear how much of this defensive stance is due to the potential impact on jobs and creators and how much is an aversion to technological changes, as also seen with NFTs and cryptocurrencies. But that’s the prevailing feeling about AI in games right now.
GTA 6 is finally official
Grand Theft Auto 5 was released ten years ago and has become one of the best-selling games of all time across three different console generations.
Obviously there was going to be another game in the open world series, but Rockstar Games hadn’t announced it yet. However, some major leaks in 2022 have revealed a lot about what to expect.
Earlier this month, Rockstar finally revealed the first official trailer for Grand Theft Auto 6, showcasing another luxurious open-world crime game that takes cues from TikTok and streaming culture, seemingly increasing the immersion (and mayhem ). And once again, Rockstar was beaten to the punch by a leaker, who the day before had shared the trailer with the message “Buy BTC” printed on it.
We’ll see if Rockstar can keep the game under wraps ahead of its 2025 release on PlayStation 5 and Xbox Series X/S.
Apple Vision Pro is introduced
After years of speculation and leaks, Apple has finally made it official: the tech giant is making a mixed reality headset. The Apple Vision Pro will debut in early 2024, combining virtual reality and augmented reality in one super-premium headset… at the ambitious price of $3,499.
Apple will no doubt be targeting early adopters of this product before presumably offering a cheaper, streamlined successor aimed at a wider audience.
Interestingly, Apple hasn’t shown its cards yet when it comes to gaming on the Vision Pro, but gaming has rarely been a major focus for Apple. However, we predict that developers will be eager to embrace this high-end headset to create new immersive experiences.
Immutable and Polygon are unen
In a move that could help streamline Web3 gaming in the coming years, cryptocurrency gaming startup Immutable has announced a partnership with Polygon, creator of the Ethereum scaling network, to power a new gaming network on Ethereum called Immutable zkEVM.
Instead of fighting for game developers and users, the two major cryptocurrency startups are coming together on Polygon’s zkEM-based gaming network, and we’ve seen a growing list of game creators committed to building on the network.
Immutable is quickly becoming one of the biggest names in blockchain-based gaming, and its new Passport wallet is designed to streamline the onboarding process and identity sharing in games. In 2024 we will have a clearer idea of how important this movement may ultimately be for cryptocurrencies and NFT gaming.
The problems associated with eSports are only growing
Just like the gaming industry in general, the eSports space is also going through a crisis lately. The industry saw a surge in interest and viewership early in the pandemic, when live sporting events were canceled, but the enthusiasm eventually waned.
Additionally, much of the cryptocurrency sponsorship money that entered the industry disappeared after the collapse of FTX in 2022. Now, companies are facing changes in the industry and are looking for ways to reduce costs and stay afloat.
“Everyone in esports is at war right now,” Marco Mereau, co-founder and CEO of the M80 team, said at Decrypt’s GG this fall. “And that war is survival.”
Activision Blizzard’s Overwatch League, originally one of the most anticipated esports launches and generating hundreds of millions of dollars in franchise fees for teams, is effectively dead as the publisher shifts its strategy for next year.
Meanwhile, major gaming organization FaZe Clan went from a $725 million SPAC deal in 2022 to being sold for just $17 million this fall, after performing horribly as a publicly traded company.
Can the eSports industry recover in 2024 after some of its biggest teams and leagues had major successes this year? While there is a passionate fan base and high-level professional players, after all these years, the industry is looking for a way to make money and be sustainable.
By Ryan Ozawa.
2023-12-30 17:33:54
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