Industry Veteran Urges Return to Core Gameplay as AAA Development Costs Spiral Out of Control

The Crossroads of Modern Game Development

The video game industry stands at a pivotal moment, facing what many are calling a crisis of sustainability. According to Meghan Morgan Juinio, former Santa Monica Studios director of product development, the current trajectory of blockbuster game production cannot continue indefinitely. Having worked extensively on the God of War series, Juinio brings insider perspective to the mounting challenges facing major publishers.

The Crossroads of Modern Game Development
The Unsustainable Economics of AAA Gaming
The Rise of the “Small but Mighty” Game
Fun as the Ultimate Metric
The Path Forward for Major Publishers
The Challenge of Discovery in a Crowded Market
A Industry at an Inflection Point

The Unsustainable Economics of AAA Gaming

Juinio doesn’t mince words when discussing the financial realities of modern game development. “I think it’s already not really sustainable in terms of the cost of development,” she stated during an interview at Gamescom Asia x Thailand Games Show. The numbers support her assessment – over 45,000 industry jobs have been eliminated since 2022 as companies struggle with ballooning production costs and shifting market dynamics.

The concentration of these layoffs on the US West Coast, where development costs are notoriously high, underscores the geographic dimension of the crisis. “Development costs will necessitate that the big publishers create [new] pathways,” Juinio predicts, suggesting that the industry’s current model requires fundamental restructuring.

The Rise of the “Small but Mighty” Game

While major publishers chase increasingly expensive spectacle, smaller teams have demonstrated that innovation and fun don’t require nine-figure budgets. Games like Clair Obscur: Expedition 33 and Peak have captured player attention and critical acclaim despite modest resources.

This contrast raises important questions about why billion-dollar companies struggle to replicate the success of these smaller projects. According to Juinio, the answer lies in returning to fundamental principles: “Just make something awesome, and that will achieve what you need it to achieve.”

Fun as the Ultimate Metric

In an industry increasingly focused on graphical fidelity, expansive worlds, and cinematic presentation, Juinio advocates for a back-to-basics approach. “My opinion is that it has to be fun first,” she emphasizes. This philosophy represents a potential course correction for an industry that has sometimes prioritized spectacle over substance.

Juinio acknowledges that even the most polished production values cannot compensate for lackluster gameplay: “It can look the most beautiful, the best soundtrack in the world, it can be winning all the BAFTAs for audio and all this, but if it’s not fun it’s not worth the investment.” This perspective challenges the notion that bigger budgets automatically translate to better games.

The Path Forward for Major Publishers

The solution, according to Juinio, doesn’t necessarily mean abandoning AAA development entirely. Rather, she envisions a more diversified approach where major publishers explore multiple development tiers. “Does it mean a game like God of War is going away? I don’t think so. But I think you’ll start to see some avenues for the AA or single A from the larger publishers as well.”, as previous analysis

This strategy would allow publishers to maintain their flagship franchises while simultaneously experimenting with smaller-scale projects that prioritize gameplay innovation over production scale. The success of games like R.E.P.O. demonstrates that players remain hungry for fresh experiences, regardless of their technical sophistication.

The Challenge of Discovery in a Crowded Market

Even with compelling gameplay, Juinio recognizes the modern challenge of getting games in front of players. With distribution and visibility becoming increasingly competitive, and nearly half of American gamers being 35 or older with limited gaming time, creating standout experiences has never been more important.

Despite these challenges, Juinio maintains that quality should remain the primary focus: “How do we go back to building solid games that are really fun to play. Maybe they aren’t 40 hours long, and maybe they aren’t the most cutting edge — but that doesn’t matter if the core experience is really fun.”

A Industry at an Inflection Point

The video game industry faces a critical choice: continue down the path of escalating budgets and production values, or rediscover the fundamental elements that make games enjoyable. As development costs rise and player preferences evolve, the wisdom of focusing on core gameplay experience becomes increasingly apparent.

Whether major publishers can successfully navigate this transition remains to be seen, but the message from industry veterans like Juinio is clear: fun must come first. As the industry continues to evolve, this back-to-basics philosophy may prove essential for sustainable growth and creative fulfillment.