The Impending Collapse of the Western Gaming Industry
The writing is on the wall. The Western gaming industry is barreling toward a catastrophic crash, one that mirrors the infamous video game industry collapse of the 1980s. But this time, it’s not just about oversaturation of low-quality games—it’s about ideological corruption, financial irresponsibility, and a complete disconnect from the gaming audience.
While gamers have been sounding the alarm for years, recent events have all but confirmed the inevitable. Companies that have embraced DEI (Diversity, Equity, and Inclusion) initiatives at the expense of actual game quality are now paying the price. Major studios are bleeding money. Highly anticipated AAA titles are flopping left and right. And now, foreign studios, particularly in China and Korea, are actively cutting ties with Western developers, citing laziness and ideological toxicity as the primary reasons.
The Warnings Were There All Along
For years, Western developers have been shifting their focus from creating great games to pushing political narratives. From unnecessary censorship to forced ideological messaging, modern Western games have prioritized DEI over innovation, leading to a string of embarrassingly bad releases.
Suicide Squad: Kill the Justice League – A massive financial disaster despite the studio’s best efforts to market it as a must-play title.
Avowed – A game that once had high expectations but has alienated its audience by prioritizing identity politics over a compelling RPG experience.
Dragon Age: The Veilguard – Once one of the most beloved franchises in gaming, now reduced to an uninspired, checklist-style DEI project.
Gamers are rejecting these products outright, and the numbers prove it. The Western gaming industry is burning through billions on failed titles, and in a desperate attempt to recover, studios are resorting to layoffs, studio closures, and budget cuts—none of which address the root cause of the problem.
Netease’s Move: The Final Nail in the Coffin
Netease, the Chinese developer behind the upcoming title Marvel Rivals, has begun firing U.S.-based employees and shifting their focus away from Western hiring altogether. This signals a new and brutal reality—Western developers are no longer seen as valuable assets in the global gaming market.
Companies in China and Korea are succeeding because they focus on quality, gameplay, and player experience. Stellar Blade and Black Myth: Wukong are proof that high-quality, visually stunning, and innovative games are still possible—just not in the West.
Meanwhile, Western studios continue to throw money into ideological vanity projects. Sony, for example, is poised to lose over half a billion dollars on Concord, a game that looks like a cheap knockoff of better titles. Square Enix is struggling as well, with consumer backlash hitting their sales hard. Even classics like Final Fantasy 7 Remake are being censored years after release, further alienating the fanbase.
The message from consumers is clear: We do not want this.
And yet, the Western industry refuses to listen.