adminThe video game industry is still expanding, but rising production costs and slower audience growth are changing the economics of making games. Hasbro CEO Chris Cocks says publishers may need to reconsider how they build teams, use emerging technology and balance risk against potential returns.
Why the video game industry may need a new approach
In an interview about the challenges facing game development, Cocks described a market that continues to grow but is not increasing at a double-digit pace. At the same time, creating large-scale games has become more expensive as players expect substantial amounts of polished content.
He said a AAA game can require at least a thousand person-years of work. When development costs rise faster than the audience or a company’s ability to raise prices, traditional production strategies become harder to sustain. For studios, the practical takeaway is to assess the scope of a project early and make sure its budget aligns with a realistic audience and business plan.
Recruiting talent beyond traditional hubs
Cocks suggested that game companies could look beyond familiar recruitment centers such as San Francisco and Austin, Texas. He pointed to talent pools in Southeast Asia, China and Eastern Europe as possible places to find skilled developers, while emphasizing the value of pairing those teams with people who understand the intended market.
For publishers considering international teams, location alone is not a solution. Clear communication, suitable production processes and strong coordination between development teams and market specialists are important to delivering a consistent game.
AI, player expectations and production choices
Cocks also discussed artificial intelligence in games. He acknowledged that many players are not positive about its current use, but believes a high-quality and enjoyable application may emerge. The key challenge for developers is to ensure that any new tool improves the player experience rather than being added simply because it is available.
Studios can evaluate new technology by asking whether it improves quality, supports development or creates meaningful gameplay. Player response matters, so testing and feedback can help teams identify whether an AI feature adds genuine value.
Managing risk and finding revenue
Cocks estimated that an individual video game has a 20 to 30 percent chance of succeeding. That uncertainty means publishers need to consider how their investments can withstand projects that do not perform well. In practical terms, a portfolio approach can help companies avoid relying on one release to cover every development cost.
He described three approaches used by Hasbro: extending established brands, including Magic: The Gathering Arena; digital licensing, which he characterized as high-margin and scalable; and selective investment in publishing to build relationships with players.
For some releases, Hasbro favors a straightforward purchase model over complex battle passes or free-to-play systems. The intended offer is a game sold at a set price, with around 40 to 50 hours of content, and the possibility that satisfied players will later choose to buy a sequel. Cocks also expressed hope that future Hasbro games will impress audiences.
What this means for the video game industry
Cocks’s comments highlight the pressure on publishers to match development spending with realistic demand. Broader talent searches, careful experimentation with AI and varied business models are potential ways to respond, but each decision depends on the project and its audience. For the video game industry, sustainable growth may come down to making thoughtful choices about where resources go and how each game creates value for players.
