Industry Pendulum Swings

Summary

In this video, Tim explores the cyclical nature of trends in the gaming industry, discussing how practices like outsourcing, in-house development, and hiring strategies swing back and forth over the years. He highlights recurring cycles in art styles, from photorealistic to stylized designs, the rise and fall of technologies like VR and cloud gaming, and the fluctuating appeal of different game models, such as MMOs and live services. Tim emphasizes that these 'pendulum swings' are not mere trends but recurring phases that shape the industry's evolution.

Takeaways

• 😀 The gaming industry experiences pendulum swings, where trends come and go, but certain cycles repeat over time.
• 😀 Outsourcing development versus in-house teams is a recurring cycle. Companies often shift between the two based on cost and efficiency.
• 😀 Hiring experienced professionals versus bringing in fresh, new talent is another ongoing industry cycle, with companies swinging between these two approaches.
• 😀 The size of development teams fluctuates. Companies shift from small, nimble teams to large ones, then back again depending on project needs and costs.
• 😀 Art style trends in games often swing between photorealistic and stylized graphics, with each having its own period of dominance.
• 😀 Virtual Reality (VR) is a recurring technology that cycles between excitement and disinterest, though it continues to resurface in the industry.
• 😀 MMOs (Massively Multiplayer Online games) follow a similar cycle of going in and out of popularity based on social gaming needs.
• 😀 Live service models (previously subscription models) have become more common, but they also experience shifts in popularity with players.
• 😀 Cloud gaming, although hyped and tested for years, goes through cycles of interest and disappointment, but continues to return as streaming technology advances.
• 😀 Niche gaming peripherals, such as smell-based devices and haptic feedback equipment, have made brief appearances in the industry, only to fade out and resurface again.
• 😀 Overall, industry pendulum swings are not fleeting trends but cyclical shifts that show up repeatedly as companies and gamers shift their focus.

Q & A

What does Tim mean by 'pendulum swings' in the context of the gaming industry?

Tim refers to 'pendulum swings' as cyclical changes or fluctuations in the gaming industry, where certain trends, practices, or technologies repeatedly come into popularity and then fade away, only to return later. These are not fleeting trends but rather long-term shifts that occur over a span of years or decades.

How does outsourcing in the gaming industry affect game development?

Outsourcing in game development allows companies to reduce costs by hiring external developers for specific tasks, such as art or coding. However, this approach can become expensive, hard to manage, and lead to delays or quality issues. Eventually, companies often revert to in-house development to regain control and reduce the challenges of managing external teams.

What are the benefits and drawbacks of hiring experienced vs. inexperienced employees in the gaming industry?

Hiring experienced employees provides valuable knowledge and expertise, but can be costly. On the other hand, hiring inexperienced employees can bring fresh ideas but may result in costly mistakes due to a lack of experience. This leads to a cycle where companies switch between hiring experienced professionals and bringing in new talent.

Why do companies shift between small and large teams for game development?

Companies initially opt for smaller, nimble teams to reduce costs and streamline production. However, as the scope of the game increases, they often need larger teams to handle more complex tasks. This cycle repeats as companies adjust based on budget constraints, project requirements, and the need for flexibility.

What is the role of art style in the pendulum swings described by Tim?

Tim notes that the gaming industry swings between photorealistic art and stylized art. Early in the rise of high-resolution graphics, photorealism was prioritized, but over time, stylized art gained popularity due to its ability to age well and avoid the uncanny valley effect. As graphics technology improves, the industry cycles back to favoring photorealism.

How has virtual reality (VR) evolved in the gaming industry according to Tim?

VR has gone through repeated cycles of hype and disappointment. It is initially seen as the next big thing, only to lose traction as users find it exhausting or impractical. However, VR continues to resurface due to new games or advancements in technology, keeping it in a perpetual state of in-and-out popularity.

What are live service models, and how do they relate to pendulum swings in gaming?

Live service models, which include ongoing content updates and subscriptions, are another example of a pendulum swing in gaming. Originally known as subscription models, live services became popular as players sought continuous content updates. However, their popularity has fluctuated over time, with some players growing tired of them.

How does cloud gaming fit into the pendulum swings described by Tim?

Cloud gaming has experienced cycles of rising and falling popularity. While it offers the potential for gaming without dedicated hardware, issues like latency and input lag have kept it from becoming a mainstream success. However, it resurfaces as technology improves, making it a recurring topic in the industry.

What is the significance of peripheral devices, like smell and haptic feedback, in the context of gaming trends?

Tim highlights the attempt to integrate sensory experiences like smell and haptic feedback into gaming, which represent the industry's pursuit of new ways to immerse players. These devices have come and gone, often failing to gain widespread appeal, but continue to return as companies experiment with new forms of immersion.

How do Tim's observations about pendulum swings challenge the concept of 'trends' in the gaming industry?

Tim distinguishes pendulum swings from trends by emphasizing that pendulum swings are long-term cycles of popularity, while trends are more temporary. Pendulum swings represent deeper, recurring changes that come and go over time, often driven by economic or technological factors, while trends are often driven by market forces or consumer fads.