Gaming faces existential crisis: romero warns of 'worse than '83'

The video game industry, a titan of Entertainment, is teetering on the precipice of a sustained downturn. Layoffs are now a weekly occurrence, market saturation looms large, and the relentless push towards games-as-a-service models, coupled with the disruptive force of generative AI, has ignited palpable anxiety amongst industry veterans. The situation, according to legendary game designers John Romero and Brenda Romero, is more dire than the infamous crash of 1983.

A bleak assessment from industry icons

Speaking in a recent interview with GamesIndustry, the Romeros offered a stark assessment. Brenda Romero didn't mince words: “The industry is in a horrible place. We were there during the '80s crash, and this is definitively worse.” The sentiment resonated deeply, with many developers—and their partners—grappling with uncertainty and fear. It’s a pervasive sense of unease, a stark contrast to the industry’s recent boom.

The '83 crash serves as a chilling reminder of unchecked expansion and a lack of understanding within the nascent gaming sector. Remember the CES show floor, swelling from just three third-party developers to a staggering thirty in a single year? That unchecked growth led to a flood of low-quality titles, mimicking successful formulas rather than innovating. Consumers bore the brunt, while distributors were saddled with returns and ultimately, closures. The rise of PC gaming further exacerbated the crisis, eventually culminating in a period of relative stability with the arrival of the Nintendo Entertainment System and its quality assurance seal.

Ai's shadow and the precariousness of success

But the current turmoil isn't simply a repeat of history. John Romero highlighted a new layer of complexity: the pressure to adopt generative AI, even amidst resistance from both developers and players. “There's immense pressure to use generative AI, and also immense resistance,” he noted, adding that Romero Games, the studio he runs with Brenda, is firmly resisting that trend. The irony is particularly sharp: even a successful project doesn't guarantee job security. EA’s decision to lay off staff following the strong performance of Battlefield 6 underscores this unsettling reality—a move Romero described as “unexplainable.”

Romero games' struggle and a diminished team

Romero Games themselves have felt the pinch. Microsoft’s cancellation of projects like Everwild and Perfect Dark in mid-2023, along with the subsequent funding cuts for their own game, brought the studio perilously close to collapse. However, they persevered, albeit with a dramatically reduced team—down from a robust 110 developers to a lean core of just nine. “The size of the game is dictated by the size of the team and the time available,” John explained, acknowledging the impact on the scope of their current project, a cooperative title described as “massive.”

A glimmer of optimism amidst the gloom

Despite the hardships, John Romero remains cautiously optimistic.