Gaming Industry's Employment Dilemma: Ustwo Games CEO's Remarks Spark Debate on Job Security
Navigating the Evolving Landscape of Game Development Employment
Ustwo Games CEO's Candid Reflection on Employment Practices
Maria Sayans, the CEO of Ustwo Games, recently made waves with remarks delivered during an interview at the London Games Festival. Her assertion that the industry has been "a little bit too romantic" about providing long-term job security to its workforce has provoked considerable debate. This statement emerged as she outlined Ustwo's strategic adjustments to navigate an increasingly challenging business environment.
The Financial Realities Behind Strategic Shifts
Sayans underscored the financial constraints compelling Ustwo Games to reconsider its operational model. She noted that developing titles like 'Alba' or 'Assemble With Care' would now demand significantly lower budgets. This necessity stems from the studio's London base, which entails higher operational costs, including employee pensions, compared to other developers achieving success on PC with more modest financial outlays.
Rethinking Team Structure: From Permanent Staff to Flexible Contracts
With a core team of under 30 individuals, occasionally expanding to 40 for projects like 'Monument Valley 3', Ustwo Games is confronting the high costs associated with its current development scale. Sayans openly acknowledged the need to reduce development budgets, which have ranged between £7 million and £10 million. This re-evaluation points to a future where the studio will increasingly rely on a core team supplemented by contractors for project-based growth.
The Mobile Market's Instability and the Shift to PC/Console
A pivotal factor in Ustwo's strategic pivot was the unexpected removal of 'Monument Valley 3' from Netflix just six months after its launch, despite its platform exclusivity. Sayans highlighted that the mobile gaming sector no longer provides a dependable foundation for sustained business growth. Consequently, Ustwo Games is redirecting its focus towards crafting engaging single-player experiences for PC and console platforms, indicating a significant shift in their target market.
Pricing Strategies in a Competitive Market
The transition to PC and console gaming also brings new considerations for game pricing. Sayans suggested a strategy of initially pricing games slightly higher, with the option for future discounts. She noted that core, day-one players are often less sensitive to price differences between £5 and £10, emphasizing that underpricing can jeopardize team sustainability. This approach, while potentially unpopular with some players, aims to secure better financial stability for the development team in the long run.
The Double-Edged Sword of Contractor-Based Growth
Returning to the core issue of employment, Sayans expressed her reluctance, yet acceptance, of the industry's growing reliance on contractors. She stated, "I hate about the industry" referring to the shift, acknowledging that industry veterans from the early 2000s enjoyed greater job stability. However, the current financial climate necessitates that any future expansion at Ustwo Games will primarily occur through contracting, reflecting a broader, challenging trend of evolving employment models within the gaming sector. This trend, often resulting in job insecurity, is a constant source of frustration for many within the development community.