Podcast Summary: "The State of the Video Game Industry with Adam Boyes"

Podcast Information:

• Title: Kinda Funny Gamescast: Video Game Podcast
• Hosts: Tim Gettys, Greg “GameOverGreggy” Miller, Blessing Adeoye, and Andy Cortez
• Episode: The State of the Video Game Industry w/Adam Boyes
• Release Date: March 14, 2025

1. Introduction and Guest Introduction

The episode features Adam Boyes, founder and CEO of Vivrado, joining hosts Greg Miller and Blessing Adeoye Jr. to discuss the current state of the video game industry. Adam brings nearly three decades of experience, having worked with major companies like Capcom, EA, and Iron Galaxy Studios before venturing into his own consultancy.

Notable Quote:

Adam Boyes [03:19]: "I've been in video games for 29 years. Many of you might know me from the Shiger video. A little bit different. No glasses now. I didn't have a beard back then."

2. Vivrado: Addressing Industry Challenges

Adam outlines the inception of Vivrado, a strategic consultancy aimed at tackling the myriad of problems plaguing the gaming industry. Through extensive interviews with over 200 industry leaders, Adam and his team identified 123 distinct problems, narrowing them down to 52 key issues. These are encapsulated in a "deck of cards" used for discussions and workshops.

Notable Quote:

Adam Boyes [04:35]: "The top of the list was 'woke,' and the list includes broad issues like discoverability and large game budgets."

3. Major Problems in the Video Game Industry

The conversation delves into several critical challenges:

• Discoverability: With an influx of game releases, smaller titles struggle to gain visibility. Only a small percentage of new games capture significant player spending.

• Funding and Capital Deployment: There's a pressing need for more diverse funding sources to support innovation. Traditional investors often have differing KPIs, making it challenging for developers to secure necessary capital.

• Studio Health: The industry faces widespread suffering among developers, with many studios experiencing layoffs and closures. Adam emphasizes the necessity for collaboration across platforms and publishers to address these issues collectively.

• Monetization Pressures: The shift towards live-service models and battle passes has led to increased operational costs without guaranteed returns, exemplified by the closure of games like "Star Wars Hunters."

• Innovation Stagnation: AAA titles frequently play it safe, leading to a lack of innovative releases and an over-reliance on sequels.

Notable Quotes:

Blessing Adeoye Jr. [01:55]: "Daylight savings time spring forward happened on Sunday, which has led to me sleeping in and not going to the gym before going to work."

Adam Boyes [06:38]: "A lot of the big-named companies are hiring big label consultants who haven't actually shipped a game, and I was like, 'I bet I could help out more.'"

4. Case Study: Rumble Verse Closure

Adam shares his firsthand experience with the game's shutdown, highlighting the disconnect between development decisions and profitability. Despite achieving 10 million downloads and healthy daily active users, the game's monetization strategies failed to recoup the publisher's investment, leading to its eventual closure.

Notable Quotes:

Adam Boyes [34:25]: "Whenever you're making a game, you want to try to make it as successful as possible. There's a mixture of vision and market fit."

Greg Miller [35:30]: "How do you get a game that's always going? Talk to me about your retrospective on Rumble Verse in terms of this conversation."

5. Funding and Studio Sustainability

Adam discusses the critical need for increased capital from diverse sources, such as venture capital, private equity, and indie funds. He emphasizes that developers must adopt a business-oriented approach to make their studios investable, focusing on long-term returns rather than immediate profits.

Notable Quote:

Adam Boyes [19:15]: "The problem is as a developer, if you're at the edge and you're just like, I want to make this thing, I'll... Make game. I like game."

6. Innovation and AAA Game Development

The hosts explore the tension between creating high-budget AAA titles and fostering innovation. Adam argues that without downward pressure and constraints, studios become complacent, leading to repetitive sequels and a lack of groundbreaking titles.

Notable Quotes:

Adam Boyes [25:26]: "There are studios like Ed Boone and Another Realm that have made better games year over year, evolving over a 35-year-plus period."

Blessing Adeoye Jr. [44:06]: "Running out of budget inflates costs. Projects spiral as money is poured into unplanned pivots."

7. Discoverability in a Saturated Market

With the explosion of game releases, players struggle to find and commit to new titles. Adam draws parallels to the evolving attention economy, where short-form content like TikTok competes fiercely for player attention, making it harder for games to stand out.

Notable Quotes:

Adam Boyes [40:21]: "Last year, only 7% of new games got 7% of all spend across the whole ecosystem. It was mostly games that were 5 to 10 years old."

Blessing Adeoye Jr. [39:07]: "The market is flooded with new titles. Visibility and player attention are at a premium."

8. Monetization Models and Subscription Services

The discussion touches on the impact of subscription models like Game Pass and PlayStation Plus. While these services offer value to players, they pose challenges for developers in measuring game success and maintaining profitability.

Notable Quotes:

Adam Boyes [64:24]: "Game Pass does have great value for a linear type of player, but it doesn't address the ecosystem's impact on developers."

Greg Miller [66:17]: "What are one to three AAA blockbuster games in the last five years that you look at as this was an innovative title?"

9. Audience Interaction and GDC Tips

Throughout the episode, the hosts engage with audience questions and Super Chats, providing Adam with opportunities to share insights and advice. For instance, Adam offers tips for first-timers attending GDC, emphasizing the importance of networking and safety.

Notable Quotes:

Blessing Adeoye Jr. [65:50]: "What are one to three AAA blockbuster games in the last five years that you look at as this was an innovative title?"

Adam Boyes [71:06]: "Introduce yourself to everyone. Just talk to everyone. Cold approach people. Your name. Hey, do you have a minute?"

10. Conclusion and Final Thoughts

As the episode wraps up, Adam highlights the importance of collaboration and innovation in navigating the industry's challenges. The hosts encourage listeners to support their endeavors, especially with upcoming events like GDC, where they will showcase numerous indie games and engage with developers.

Notable Quote:

Adam Boyes [73:14]: "If you have big problems to solve, they call us. We put together Voltron Squad and solve the industry's problems."

Key Takeaways:

• The video game industry is undergoing a significant transformation marked by increased competition, funding challenges, and shifting player behavior.
• Discoverability is a major hurdle for new and indie games due to the saturated market and the attention economy's impact.
• Funding strategies need to evolve, with a focus on long-term business sustainability to support innovation.
• The shift towards live-service models has financial implications that can jeopardize game longevity and studio health.
• Collaboration across platforms and publishers is essential to address systemic industry issues.

Recommended For: Gamers, developers, industry analysts, and enthusiasts interested in understanding the current challenges and future directions of the video game industry.