The industry that stands with even Hollywood in terms of revenues is crumbling today. Matthew Karch, CEO of game developer Saber Interactive, believes the situation may worsen in the future, affecting the quantity of game content. However, it may actually be a good thing as it may shift the focus on quality, which many are ignoring vehemently.
But that’s only possible when the industry recovers from the latest wave of layoffs that is spreading like a trend. From Sega to Microsoft, everyone is busy with an employee cleanup. Interestingly, Microsoft laid off around 2,000 employees following its recent acquisition of Call of Duty maker Activision.
A Dark Time Prevails Over the Major Entertainment Sector
Matthew Karch sat down for an interview where he talked about Saber Interactive’s split with Embracer Group. Besides the topic, he shared his insights about the future of the gaming sector as the industry faces a downturn.
I think that there’s going to be a real shortage of game content over the coming few years. You’ve seen how many layoffs there’s been, you see how many games have gotten killed.
By November 2023, 60 games were reportedly killed by multiple companies. Recently, a leaker shared what seems to be a pitch for one canceled Spider-Man game that Insomniac was supposed to develop. Additionally, one Twisted Metal game was under development but was discontinued following the layoffs.
Earlier in February 2024, analyst and investor Matthew Ball painted a detailed picture of how the gaming industry is doing. While the market continues to get blows from game cancellations and layoffs, there is a brighter side to it. Several popular titles like Fortnite continue to grow as the game keeps bringing in major collaborations. In addition to that, new games like Helldivers 2 and Palworld keep making waves in the sector.
Saber Interactive Already Has Its Plans in Place to Sustain
Despite the turbulence, Matthew Karch is positive about Saber Interactive getting through this period. “We have a lot of good projects going on that I’m proud of and that I feel really, really strongly about.” It is working on Knights of the Old Republic Remake, and Matthew confirms that it is still “alive and well.”
Apart from that, the company is also developing Warhammer 40,000: Space Marine II, which is slated to release in September 2024. He confirms the game will hit the shelves with a retail price tag of $70, as he is concerned about gamers seeing a game with a lower price tag as a sign of poor quality.
Following the split with Embracer Group, Saber Interactive took 38 gaming projects with it as part of the $247 million deal. Furthermore, 3,000 employees were reportedly moving across, but some studios, including Tripwire Aspyre and Beamdog, will remain a part of Embracer Group.
What do you think about the split? Is it good or bad? We would like to know your thoughts in the comments section.
