alt Hacker NewsSeems a bit calculated and agreed across the industry. What can really make sense of Microsoft's acquisitions and ruining of billion dollar IPs? It's a manufactured collapse of the gaming industry. They want to centralize control of the market and make it a service based (rent seeking) sector.
I'm not saying they all got together and decided this together but their wonks are probably all saying the same thing. The market is shrinking and whether it's by design or incompetence, this creates a new opportunity to acquire it wholesale for pennies on the dollar and build a wall around it and charge for entry. It's a natural result of games requiring NVidia developers for driver tuning, bitcoin/ai and buying out capacity to prevent competitors.
The wildcard I can't fit into this puzzle is Valve. They have a huge opportunity here but they also might be convinced that they have already saturated the market and will read the writing on the wall.
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The video game industry has been through cycles like this before. One of them (the 1983 crash) was so bad it killed most American companies and caused the momentum to shift to Japan for a generation. Another one I can recall is the "death" of the RTS (real-time strategy) genre around 2010. They have all followed a fairly similar pattern and in none of them that I know of have things played out as the companies involved thought or hoped they would.
Valve is a private company so doesn’t have the same growth at all costs incentives. To Microsoft, the share price is everything.
If it’s manufactured it implies intent. Someone at Microsoft is doing it on purpose and, presumably, thinks it’ll benefit them. I’m not sure how this can be seen as a win for them. They invested a massive amount of money into buying all those game studios. They also admitted Xbox hardware is basically dead. So the only way they can any return on that investment is third party hardware: either PlayStation or PC. If I were to choose it would be pc for MS. They already have game pass and windows is the gaming OS. By giving business to Sony they would undermine those.
I don’t think nVidia wants gaming collapse either. They might not prioritize it now but they definitely know that it will persist in some form. They bet on AI (and crypto before it) because those are lucrative opportunities but there’s no guarantee they will last. So they squeeze as much as they can out of those while they can. They definitely want gaming as a backup. It might be not as profitable and more finicky as it’s a consumer market but it’s much more stable in the long run.
As much as they've got large resources, I'm not sure what projects they could reasonably throw a mountain of money at and expect to change things, and presumably benefit from in the future instead of doing it to be a a force of chaos in the industry. Valve's efforts all seem to orbit around the store, that's their main business and everything else seems like a loss-leader to get you buying through it even if it comes across as a pet project of a group of employees.
The striking one for me is their linux efforts, at least as far as I'm aware they don't do a lot that isn't tied to the steam deck (or similar devices) or running games available on steam through linux. Even the deck APU is derived from the semi-custom work AMD did for the consoles, they're benefiting from a second later harvest that MS/Sony have invested (hundreds of millions?) in many years earlier. I suppose a lot of it comes down to what Valve needs to support their customers (developers/publishers), they don't see the point in pioneering and establishing some new branch of tech with developers.
> It's a manufactured collapse of the gaming industry. They want to centralize control of the market and make it a service based (rent seeking) sector.
It also won’t work, and Microsoft has developed no way to compete on actual value. As much as I hate the acquisitions they’ve made, even if Microsoft as a whole were to croak tomorrow I think the game industry would be fine.
I've always played a few games for many hours as opposed to many games for one playthrough. Subscription just does not make sense for me, and I suspect that's a big part of the market. Add to this the fact that you have no control over it and then top it off with potential ads and I will quit gaming before switching to subs only. Luckily there is still GoG and Steam doesn't seem like it will change but who knows.
This post is crazy nonsense: Bad games companies have always existed, and the solution is easy: dont buy their trash. I buy mostly smaller indie games these days just fine.
nvidia isn't purposely killing anything, they are just following the pivot into the AI nonsense. They have no choice, if they are in a unique position to make 10x by a pivot they will, even if it might be a dumpsterfire of a house of cards. Its immoral to just abandon the industry that created you, but companies have always been immoral.
Valve has an opportunity to what? Take over video card hardware market? No. AMD and Intel are already competitors in the market and cant get any foothold (until hopefully now consumers will have no choice but to shift to them)
I think the reason you see things like Blizzard killing off Overwatch 1 is because the Lindy effect applies in gaming as well. Some things are so sticky and preferred that you have to commit atrocities to remove them from use.
From a supply/demand perspective, if all of your customers are still getting high on the 5 (or 20) year old supply, launching a new title in the same space isn't going to work. There are not an infinite # of gamers and the global dopamine budget is limited.
Launching a game like TF2 or Starcraft 2 in 2025 would be viewed as a business catastrophe by the metrics most AAA studios are currently operating under. Monthly ARPU for gamers years after purchasing the Orange Box was approximately $0.00. Giving gamers access to that strong of a drug would ruin the demand for other products.