Why Game Companies Keep Failing: Ignoring Gamers and Bad Business Decisions

 

Hello, gamers! Today, I want to talk about a frustrating trend in the gaming industry—game companies continuously making games that the majority of gamers don’t want. Even worse, they have the audacity to claim that gamers don’t know what they want. This blatant disregard for player feedback is leading to the collapse of the gaming industry, and somehow, these companies are shocked by it. But even a fool like me knows that when consumers (us, the gaming community) don’t like a product, we simply won’t buy it. It’s that simple. Yet, instead of learning from their mistakes, these companies double down and repeat them. Let’s break it down.

The Cinematic Trailer Trap

One of the biggest mistakes companies make is how they introduce new games. They release cinematic trailers, which—while sometimes visually impressive—tell us nothing about the actual gameplay. These trailers generate hype, leading developers to believe they have a guaranteed hit on their hands. But when they finally reveal actual gameplay (often after investing millions into development), gamers express their disappointment. Instead of acknowledging the issues and making changes, companies blame the players for not understanding their vision. At this point, they’ve already sunk too much money into the project and have no choice but to push forward, leading to a flop.

How to fix it: Instead of focusing solely on cinematic trailers, companies should invest in short gameplay previews (3-5 minutes) early in development. This would allow them to gauge player reactions and determine if a project has potential. If gamers respond positively, great—proceed with development. If not, either pivot based on feedback or scrap the project before wasting millions.

Ignoring the Consumer Mentality

These companies seem to have forgotten a fundamental business principle—it’s not gamers who should be eager to buy their games; it’s the companies that should be eager to sell them. Yet, many developers act as though we owe them our money, even when they produce subpar content. They believe their vision is more important than consumer demand, and they refuse to accept that gamers know what they want.

The result? More and more companies are struggling financially, some even heading toward bankruptcy. At the current rate, we may see major studios shutting down simply because they refuse to listen to their audience.

The Abuse of Microtransactions and Cut Content

Another major issue is the rampant abuse of microtransactions and cut content. Many companies strip content from games only to sell it separately as "day-one DLC." This means that content, which should have been part of the base game, is instead locked behind a paywall from the start.

A better approach: If companies insist on releasing extra content, at least space it out—launch it a month or two later and add more than just the cut content from the game instead of immediately charging extra on day one. This would make it feel like an actual expansion rather than a money grab.

And let’s talk about microtransactions. While I understand that free-to-play games need a way to generate revenue, single-player and full-priced multiplayer games shouldn’t be loaded with excessive microtransactions. If a game is already selling for $60-$70, it shouldn’t feel like every feature is behind a paywall. That said, some microtransactions can be justified if they help maintain the industry standard price of $60-$70 instead of pushing it to $100+. I discussed this more in my other post: Is Grand Theft Auto 6 Really Worth $100? Let’s Break It Down.

The Path to Saving the Industry

If game companies want to survive, they need to go back to the basics:

1. Listen to gamers. We know what we want, and if we don’t like something, we won’t buy it. Listening to gamers can help, but it doesn’t mean companies must follow every suggestion—just don’t completely disregard us, as they often do.
2. Show actual gameplay early. Cinematic trailers are fine, but they shouldn’t be the main way to promote a game.
3. Stop abusing microtransactions and DLC. Consumers aren’t fools (except for me)—we recognize when content is being deliberately cut just to charge us more.

The gaming industry is at a turning point. Either companies learn to respect their consumers, or they will continue to fail. The choice is theirs.