Something is going on in the video game space, something that’s bringing up debates about the future of the industry. I’ve seen the word crash come up, and I understand why many gamers believe we are in one, but I would argue that we’re not. The industry is still making a ton of money, and plenty of success stories are still out there. The sentiment comes from the many layoffs that have become normal in the post-Covid years. These are driven by corporations that want to maximize revenue and profits to meet shareholder expectations from the ridiculous money the industry made during the pandemic. As unfortunate as these are, I don’t think it spells doom for the creativity in gaming.
Don’t get me wrong, we will have more conservative approaches from big-name companies. Ubisoft is already making moves to focus on core franchises like Assassin's Creed and sell the ones they don’t use. Japanese publishers are focusing on nostalgia as those remakes and returns will be easy money targeting gamers who grew up in that era. Microsoft went on a buying spree that assures a steady stream of games, Sony slipped a bit after their live service push began to fail but has a large catalog to fall back on, and Nintendo is, well… Nintendo, they have the most powerful set of franchises in the industry. So, does that mean the power of creativity and new ideas is dead in the industry? I would say no and even add that we are just getting started on what I believe will be gaming’s “New Hollywood” period.
New Hollywood
The New Hollywood Era is a period in the film industry that spanned from the mid-1960s to the early 1980s. See, Hollywood was in a rut after World War II. The public began to want edgier and more real stories after the more family-friendly code-era films of Hollywood’s golden age. That’s not to say there weren’t success stories in film out there, but there was a feeling that everything was safe. Film noir, musicals, and movies about the war were becoming old compared to what was happening worldwide, especially in America. The 1960s and 1970s were an era of counterculture, progressive movements, social change, and generational clashes on issues. Movies needed a kick in the pants to address the wants of its consumers.
The Hollywood Code, also known as the Hays Code, was a set of strict guidelines that movies had to follow to be released. Part of the reason for the creation of this code was the scandal-ridden 1920s Hollywood and the sense by older Americans that this was a disgusting cesspool of an industry full of sin and debauchery. The code did clean up Hollywood’s image, but it also put constraints on artists. Some movies still pushed some complex messages and themes, but it was all done with metaphor and careful camera shots to pass the code. Eventually, the code began to crack in the 60s and was entirely gone by 1968. This would be the first recipe for the coming New Hollywood Era.
The second recipe came from ambitious young filmmakers who grew up in the golden age of Hollywood and wanted to push movies to be more real, edgier, sexier, more violent, and explore new themes. This is where names like Stephen Spielberg, George Lucas, Woody Allen, Robert Altman, Martin Scorsese, Francis Ford Coppola, and many more came in. Bonnie and Clyde broke the dam as it was a movie that puts us in the seat of the “bad guys,” it is about making us look at a new perspective, even among one of history’s most notorious bank robbers. From there, we got an explosion of creativity from the industry, including movies like The Godfather, The Sting, Rosemary’s Baby, Star Wars, and Jaws. Suddenly, the directors had just as much power as the movie studios. Eventually, both sides came to a silent agreement as the studios were brought into the process, and directors began to get big movie projects while still keeping their creative power. It’s been said that this happened after Stephen Speildberg wanted to bring in the studios to be able to say no after the Twilight Zone movie saw three deaths during filming, including two children. This led to the action movie star era and eventually the 90s summer blockbusters.
New Hollywood changed the industry by taking power away from the big studios. Movie studios were so powerful at one point that they had their own police force and mobsters, and they could pay off the government. This led to some evil abuse of power, specifically at women and minors. That system began to die once the directors became more independent and influential during this era. You also had the birth of method acting over the Broadway acting style from the golden age. Hollywood was forever changed.
New Video Game Era?
As a history nerd, I don’t like to overreact to the stories of the day because I know that everything feels like it's falling apart when you live through sucky or mediocre times. The thing is, I am a believer that history rhymes and that in the end, we will be alright, even if it takes several bumps and years to get there. Even in the turmoil of the current era of United States politics, I believe that we are reliving the turbulent times of the mid-1960s to early 1980s and that while it sucks to live through, we will be fine. All that to say, I think video games follow a similar path to the film industry. The industry is still new, but we can look to the past of other sectors to get a good hold of things.
The 2D era of gaming was similar to Hollywood’s silent movie era. We were still getting used to this new medium, and there were growing pains and some classic gems, including lost ones. The 3D era of heights of the console space is Hollywood’s Golden Age, with Nintendo emerging as Disney and the others playing the part of companies of the time like United Artists, RKO Pictures, 20th Century Fox, and Universal Pictures. The HD era was in Hollywood when film really became mainstream, and we got massive stars and first household names. It is my belief we are on the verge of entering gaming’s New Hollywood era.
The major video game companies will be doing their own thing and playing it safe. That’s not necessarily bad because so much of loving video games are those big names. I still want big names like Super Mario, The Legend of Zelda, God of War, Halo, Grand Theft Auto, etc. But when it comes to true creativity in the space and the rise of independent developers, that’s where things will shine. We already started that path. Independent games are becoming more and more mainstream, and quite frankly, I sometimes get more excited about an interesting indie title than I do for the AAA stuff. Recently, titles like Celeste, Baldur’s Gate III, Dungeons of Hinterberg, Disco Elysium, Balatro, Undertale, and more have shown that small studios can make great games and sell as well as the known massive publishers. The public is ready to give these games a chance, and they can compete with the big boys.
Of course, the main factor in the New Hollywood era was the creative directors, who came in as fans and then became household names by pushing creativity and themes in films. This trend is also starting in the video game space. We still have some household names from the previous eras, like Shigeru Miyamoto, Hideo Kojima, Todd Howard, Eiji Aonuma, etc. But now we have a crop of new names that are getting recognition by pushing gaming in new directions. Sure, Kojima pushed the storytelling envelope in the past, but he is no longer an exception to the rule. Josef Fares has become the king of co-op game campaigns, leading to some awards and critical acclaim, including It Takes Two getting Game of the Year awards. Neil Druckmann is partially responsible for the rise of single-player narrative-driven games that tell challenging stories like The Last of Us. The landscape started to shift as we entered the mid-2010s, but it’s really going to shift now.
The layoffs will provide some changes for many people who work in the industry. Some will ditch it and do something different, others will find their feet, but I bet you everything I can that some will use it to start their own studios or take a chance at something different in gaming. It’s not just Millennials who grew up with gaming anymore; Gen Z is slowly starting to enter the workforce, and that means new developers and new designers. The video game equivalent to Spielberg or David Lynch is waiting to be revealed. As studios close and companies get conservative, the space for art will open up, and indies will get flooded with the next household names. With “console wars” no longer at the front of the news sections, games will become more important than the box, and people will eventually want new ideas. Sure, live service games are something that will be a go-to, but this leaves the door open for new single-player campaigns that explore new ideas.
The Creatives Are Coming
In closing, I think video games are either in the beginning or about to begin their version of the New Hollywood era. The industry's game developers and new auteurs will become as important as the studios, and new innovations and ideas are coming into the space. It’s already started, and I believe it’s going to pick up. Again, this doesn't mean that indie games will surpass the AAA stuff; it won’t. However, you will see them more in the conversation, and the developers that help make these games will become more visible as awards shows and other aspects become a part of the industry. Buckle up because video games are about to get very interesting.
Be Nice to All
I really hope you're right. I do agree that the gaming industry is in a major transitional shift, and I do think the way forward creatively is not the old guard. But I'm also not sire the way forward can necessarily be accomplished with the current technology.
We're approaching year 20 of the HD era, which is the longest of any video game era. VR is still super niche and awkward. AR feels incredibly underutilized. At some point, games are going to have to get off the screens we've been playing them on for 40 years and emerge into our physical reality.
Young developers making games we play and interact with apart from television, similar to AR. New technology combined with new ideas always moves things forward.
But hey, if I'm wrong, that's ok too.
Thanks for the thought-provoking piece, JM.
I can definitely see things starting to move in this direction. Lots of indie developers means lots of ways to try blending genres and mechanics and ideas in ways that haven't been done before.
It can be frustrating to see the smaller organizations taking the big risks on those new ideas before the bigger companies consider them safe enough to invest in, but I think constraints (on team size, budgets, skills, etc.) can force creativity in ways that aren't necessary when you have a large team with a well-rounded skillset and larger scale budget. You only *have* to find new ways of doing things if something is preventing you from going the old route. Which requires creative solutions to be effective.
Thanks for your thoughts on this. It will be interesting to see what the future holds on the gaming front.