Industry Veteran Warns of Blockbuster Game Bubble, Champions Return to “Fun-First” Development Philosophy

The Unsustainable Economics of AAA Gaming

Former God of War executive Meghan Morgan Juinio has issued a stark warning about the current state of blockbuster game development, stating that the industry’s obsession with massive budgets and cinematic spectacle is “not really sustainable.” Having recently departed her role as director of product development at Sony’s Santa Monica Studios, Juinio brings insider perspective to what many are calling a crisis point for major publishers.

“I think it’s already not really sustainable in terms of the cost of development,” Juinio told PC Gamer during Gamescom Asia. “There’s been a ton of layoffs, and a lot of that is focused on the West Coast of the US, and it’s clearly because the minimum costs are so high. Development costs will necessitate that the big publishers create [new] pathways.”

Returning to Gaming’s Core Principle: Fun

Juinio’s central argument revolves around a fundamental shift in priorities that she believes the industry desperately needs. Rather than chasing graphical fidelity and production values that drive budgets into the hundreds of millions, she advocates for a return to what truly matters in gaming.

“My opinion is that it has to be fun first,” she emphasized. “It can look the most beautiful, have the best soundtrack in the world, it can be winning all the BAFTAs for audio and all this, but if it’s not fun it’s not worth the investment, whether that’s $2m or $500m.”, according to additional coverage

This philosophy represents a significant departure from the current AAA model, where development cycles often stretch to five or six years with teams numbering in the hundreds. Juinio suggests that publishers should look to AA or single A games for inspiration, focusing on solid gameplay mechanics rather than exhaustive content or technical marvels.

The Rise of Smart-Scoped Success Stories

Recent market successes demonstrate the viability of Juinio’s approach. Games like Clair Obscur: Expedition 33 and Peak have proven that smaller teams with constrained budgets can create impactful experiences that resonate with players. These titles achieve success not through overwhelming production values but through innovative gameplay and focused design.

For Sony specifically, Astro Bot serves as a prime example of critical and commercial success achieved through what the game’s director Nicolas Doucet describes as “AA-sized ambition.” During a talk at this year’s GDC, Doucet explained their approach: “A lot of choices we made with Astro Bot could be labelled as AA… like the size of the team, the size of the game, there’s no voice, it’s not open world, but that doesn’t really matter. We could still make something that gets people really happy.”

The Discovery Challenge in a Crowded Market

While advocating for smaller-scale development, Juinio acknowledges the growing challenge of game discovery in an increasingly saturated market. With thousands of titles releasing annually across multiple platforms, even excellent games can struggle to find their audience., as earlier coverage

Doucet addressed this reality with a pragmatic perspective: “In order to exist in this very busy world, I think it’s sometimes better to settle for a good spot in the second week rather than a bad spot in the first week.” This suggests that sustainable success might come from long-term player engagement rather than massive launch-day marketing blitzes.

A Path Forward for the Industry

Juinio’s comments arrive during a period of significant turbulence in the gaming industry, marked by widespread layoffs and studio closures. Her perspective suggests that the solution may not involve doubling down on existing models but rather rethinking fundamental approaches to game development.

“I think that’s where the biggest publishers can return: how do we go back to building solid games that are really fun to play,” she proposed. “Maybe they aren’t 40 hours long, and maybe they aren’t the most cutting edge – but that doesn’t matter if the core experience is really fun.”

This back-to-basics approach could represent the most viable path forward for an industry grappling with unsustainable development costs and changing player expectations. As development tools become more accessible and distribution platforms more diverse, the conditions may be ripe for a renaissance of fun-first game design that prioritizes player enjoyment over technical ambition.

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