Space Marine 2 developer studio boss prophesies the death of AAA games

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].”

The relevance of the "AAA" designation itself is being questioned by developers. Once signifying high budgets, superior quality, and low risk, it's now increasingly linked to profit-driven competition that compromises quality and innovation.

Revolution Studios co-founder, Charles Cecil, echoed this sentiment, calling the term "silly and meaningless." He attributed the negative shift in the industry to the massive investments made by major publishers. He explained, "It's a meaningless and silly term. It's a holdover from a period when things were changing, but not in a positive way." Ubisoft's Skull and Bones, marketed as a "AAAA" title, is cited as a prime example of this trend.