Former Nexon CEO Warns AAA Games Are Near Collapse

Former Nexon CEO Owen Mahoney has delivered a striking warning to the gaming world, stating that the AAA gaming industry is approaching a “structural end.” Mahoney explained that skyrocketing development costs, extended production timelines, and a culture of risk aversion are causing major studios to stagnate creatively. According to him, executives in large companies face immense pressure, where a single failed project costing hundreds of millions of dollars can jeopardize careers and deter future innovation.

Mahoney highlighted that this systemic pressure forces studios to focus on safe, familiar concepts, limiting creative experimentation. Even franchises with a history of success are not immune, as the industry rewards current determination and team vision rather than past achievements. He cited examples like Monster Hunter Wilds, which despite its pedigree, cannot fully escape these structural challenges.

Despite these concerns, Mahoney expressed optimism about the potential of AI in reshaping game development. AI technologies are already assisting in asset creation, testing, and production workflows, allowing smaller teams to produce games more efficiently. He believes AI could unlock new gameplay possibilities, increase production speed, and potentially trigger growth comparable to the transformative impact of the internet on gaming. Mahoney even predicts the gaming industry could triple in size over the next five to seven years, emphasizing that player demand for high-quality experiences remains constant, and AI serves as a tool to enhance creative output.

The discussion about the future of AAA gaming and AI’s role in its revival is just beginning. Players, developers, and industry enthusiasts are encouraged to share their thoughts and insights on the This is Game SEA platform.

The AAA sector may be struggling, but AI offers a lifeline for innovation, showing that creativity and tech will define the next era of gaming.

 origin: gamespot