this post was submitted on 06 Sep 2024
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It's not like gamers are rejecting live services as a whole, because there are still quite a lot of successful live service games. And when a live service is successful, it's really successful. So much so that it's worth it to investors to keep gambling on them, one hit can compensate for a dozen flops.
Can they stay solvent through a dozen flops when each one costs them hundreds of millions of dollars?
Usually they don't completely flop though, they just underwhelm expectations but if they can stay active long enough with the right amount of whales and fish they can usually break even or make a small profit. Concord is just a high profile legitimate flop that was turned off before it could do anything.
Its trajectory was that it was going to continue to burn money. Sega didn't even launch Hyenas because they realized they'd only lose money by letting it rock. A lot of these games chasing the live service trend are spending so much money that they need to hit hard in order to turn that profit, like Avengers, Suicide Squad, Concord, the forthcoming Marathon and Fairgame$, etc. The Finals was huge at launch, lost most of its playerbase in the next couple of months (which, btw, happens for nearly every video game ever, live service or otherwise), and because it was so expensive, it's not looking long for this world. Compared to something like Path of Exile or Warframe or The Hunt: Showdown, that launched a leaner game at the start and scaled up responsibly, they didn't need to be the biggest thing in the world in order for it to make financial sense.
To be clear, I hate all of this shit, even when it's a sound business strategy, but the risk involved in a project like Concord is visible from space, and the chances of it making up that cost are so clearly small when they're not the first one of these to market.
This is the truth people don't want to admit, but Final Fantasy XIV being successful carried square enix through their darkest days when everything wasn't making a profit. Cygames using all the money they got from the granblue gacha to finance an action rpg and a fighting game, etc.
They serve as a safety net, we lost mimimi last year, I don't think anyone would say they made bad games, but they just didn't sell enough so they closed.