Home News AAA Games Face Extinction, Warns Space Marine 2 Studio Chief

AAA Games Face Extinction, Warns Space Marine 2 Studio Chief

by Sebastian Feb 12,2025

AAA Games Face Extinction, Warns Space Marine 2 Studio Chief

Matthew Karch, head of Saber Interactive, recently shared his perspective on the future of the gaming industry, predicting the decline of the high-budget AAA model. Karch, whose company developed Warhammer 40,000 Space Marine 2, stated: "I think the era of $200, $300, $400 million AAA games is coming to an end. I don't think it's necessary. And I don't think it's appropriate...I think if anything has contributed to job losses [mass layoffs in the game industry] more than anything else, it's a budget of a few hundred million dollars [for games].”

This sentiment echoes a growing feeling among developers that the "AAA" label is outdated and misleading. Once signifying high-quality, high-budget projects with low failure rates, it's now often associated with prioritizing profit over quality and innovation.

Revolution Studios co-founder, Charles Cecil, called the term "silly and meaningless," arguing that massive publisher investment has negatively impacted the industry. He points to the shift brought about by these large investments, characterizing it as ultimately detrimental. Ubisoft's Skull and Bones, initially touted as a "AAAA" title, serves as a prime example of this trend.