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Experts Predict Demise of AAA Games

Author:Kristen Update:Feb 25,2025

Experts Predict Demise of AAA Games

Matthew Karch, head of Saber Interactive, recently shared his perspective on the future of the gaming industry, predicting the decline of the high-budget AAA model. Karch, whose company developed Warhammer 40,000 Space Marine 2, stated that the era of games costing $200-$400 million is unsustainable and potentially detrimental. He believes such massive budgets are a significant contributor to the recent wave of job losses within the industry.

The "AAA" label itself is losing relevance, according to several developers. Once signifying high budgets, superior quality, and low risk, it's now often associated with profit-driven competition that compromises quality and innovation.

Charles Cecil, co-founder of Revolution Studios, echoes this sentiment, calling the term "silly and meaningless." He argues that while major publisher investment initially shifted the industry, this change hasn't been positive. He cites Ubisoft's Skull and Bones, marketed as a "AAAA" title, as a prime example of this trend.