Saber exec: The game industry must look beyond North America and dilute risk
Saber Interactive’s Chief Creative Officer Tim Willits argues that the current video game industry crisis—marked by widespread layoffs, divestments, and a financing drought—may be more specific to North America rather than affecting the entire industry globally.
Willits contends that the reckoning reflects how prohibitively expensive it has become to develop games in North America, where major corporations like Microsoft, PlayStation, and Ubisoft maintain significant operations. This geographical concentration of expensive development has created systemic vulnerability to market downturns.
To address this challenge, Willits recommends that studios look beyond North America and diversify their risk exposure. He emphasizes that studios need to establish “reliable” income streams to support their major projects—described as “big swings.” This suggests adopting a portfolio approach where stable revenue from international markets or diverse product lines can fund higher-risk AAA titles.
The broader implication is that the industry’s current turmoil may represent a necessary correction and restructuring rather than existential collapse. Studios that successfully establish reliable revenue sources outside North America may be better positioned to weather the financing drought and continue investing in major game development initiatives.