Video game publishing roundtable: Finding opportunity in an evolving games landscape

Our video games team hosted a roundtable for video game publishers on 9 September. Below we have summarised some key themes to come out of the discussion.

Key themes from our video game publishing roundtable

Quiet, cautious optimism

While representatives were rightly circumspect about their prospects within companies that can be easily exposed to ups and downs, the mood amongst publishers and developers was slightly better than the public discourse around the wider industry is.

Realignment and readjustment have brought focus

The sugar-rush of the Covid years and the crash afterwards, including the wider maturing of the market, forced publishers to realign and readjust to a new reality. Publishers who focus on signing games that match their internal ‘gut-check’, support them on a project basis and keep a tighter rein on funding are better placed to navigate the ups and downs of the market.

Competition is fierce, but within tighter constraints than publicly revealed

There might be 700+ games releasing on Steam each week, but publishers don’t see that glut of content as their main competition. Instead, competition comes from i) the 50-60 professionally published games released each week and ii) the 1 in 650 video game that emerges from nowhere. This means that the market remains highly competitive, but inside more definable boundaries.

Everyone knows what they’re doing; nobody knows what they’re doing

Publishers increasingly rely on a combination of market intelligence, performance data and commercial analysis when assessing opportunities. However, participants agreed that successful signing decisions still involve a significant degree of judgement and intuition. Finding certainty in an unpredictable market remains one of the sector’s biggest challenges.

The longer a game is in development for, the less likely it is to have a reliable signal on what the market wants

Many publishers noted a shift away from locking in projects several years before release. As player preferences evolve rapidly, reducing the time between concept and launch is becoming increasingly valuable. The speed with which games can be cloned on Steam or through UGC platforms like Roblox has exacerbated this.

The rise of sub genres is both an opportunity and a risk

The continued growth of the games market has created opportunities for developers targeting increasingly specific audiences. Sub-genres can support highly engaged communities and create attractive publishing opportunities. However, publishers also highlighted the risks of backing trends that may prove short-lived or lack a sufficiently large audience.

Public funding and institutional support for game developers helps publishers too

Publishers recognise the value of growing markets like Italy because strong local support from a trade association, regional government and the state has encouraged them to engage with the local developer community. Regions that invest in content funding, tax reliefs and international trade support are better positioned to attract publishers and help local developers access global opportunities.

There’s a gap in the media and events landscape for the publishing sector

Publishers want to share that the landscape looks somewhat healthier than a few years ago. They want to connect in a collegial manner, and they appreciate closed-door talking shops. Pumping more oxygen into the conversation by backing trade media and events designed to connect publishers is a valuable way to trickle out an improving story.

Future roundtables

Moore Kingston Smith runs a series of private roundtables throughout the year to offer senior leaders across all aspects of the games industry a chance to discuss the opportunities and challenges they face in the workplace.

If you are interested in joining one of our roundtables, please email Edwina Kesner at ekesner@mks.co.uk.

Or if you’d like to speak to our team of accountants and business advisers who have extensive experience of supporting video game businesses across the world, please email Rob Husband at rhusband@mks.co.uk.