The Evolution of a Gaming Platform: A Shift in Focus

Introduction

When a major gaming console was first launched, the strategy was to attract a whole new audience rather than competing with established rivals in the same market. This approach worked, and the console became incredibly successful. The same strategy is now being mirrored by another platform.

The Success of the New Approach

Initial Success

• The platform’s success was measured.
• It had a higher rate of game purchases per console.
• New gamers were eager to try the platform.

Mirroring the Past

• A new platform mirrors the success of the strategy.
• The new platform’s sales are increasing year over year.

Demographic Shift

Changing User Base

• A change in the user demographics is occurring.
• Early adopters of VR were focused on gaming.
• Newer users are different than the initial user base.

New User Trends

• Most new users have never owned a device from this platform before.
• This change is impacting game developers.
• Social media reflects the rise of younger users.
• The platform is being labeled as a "kiddie platform".

Impact on Developers

• AAA game sales are being impacted.
• The platform is leaning towards free-to-play games.
• This is reflected in store statistics.
• The app was changed to make content more accessible.

Industry-Wide Changes

Impact on Game Development

• AAA game budgets are increasing.
• Sales for AAA games are not meeting expectations.
• Layoffs have occurred at studios.

Adaptation and Strategy

• Studios that are able to adapt will be successful.
• The platform now has an open store.
• This has led to many low effort games.

Future Directions

• The company is focusing on the Metaverse.
• More tools will be available for developers.

The Future for Big-Budget Games

• The platform is healthy but may not pursue big budget titles.
• Smaller studios may drive the platform forward.
• There likely will be fewer opportunities for high-production content.