My response is a mess, more of a stream of thought on the subject. Sorry
During the 8-bit, 16-bit, 32/64-bit, and the PS2 generation (where open world exploded), we saw a solid curve of advancement in the video game industry, but then that mostly stopped by the Xbox 360. So, what happened?
The story is interesting too, by the late 1990s there were a lot of once popular genres on life support. 2D platformers, being the main example—while the genre thrives on NES, SNES, and Genesis, between the N64, Saturn, and Dreamcast there was Mischief Makers by Enix; only memorable because it was the only one. Even earlier than that point and click adventures were just about dead as well with Shadowgate 64 making waves for being a throwback to a genre most western fans had forgotten by the late 1990s.
Now, every week I log into the new releases article for Switch and there are often 5 or 6 new 2D platformers and usually 1-5 point and click adventures. The 8-bit and 16-bit aesthetic is popular with the platformers, although the adventure games are leaning in to be 2D animated show quality.
But why did this begin?
I think Nintendo mostly got it right, the game industry was expanding too rapidly, development costs and hardware costs were exploding. A lot of it had to do with the fact that the development staff wasn’t there to meet the demands of the audience. I’ve worked for studios that basically fell apart because we (supposedly) couldn’t hire enough quality devs to maintain our output, we began contracting parts of the game out to partners, and that became expensive, and eventually, most of our development resources were some place in Texas. Similar thing happened to BioWare.
———Side Story———
Little story about a guy from BioWare: when I was young in my design career, and working for a studio on the rise, I got placed on a nice little team. I worked as kind of a junior designer under someone who I felt was absolutely brilliant in the craft (by that point I had worked with a number of other designers), and things were nice and happy on our content pushing team. On our team we had several artists, scripters, and an engineer (or maybe 2 or 3, long time ago now), and our goal was to pump out content for a game. Things were going smoothly, but we had some glaring holes, so we needed to fill them.
One of those glaring holes was the QA team. Usually we hired new people into the studio as QA, but then they’d almost inevitably show some great aptitude for another position we needed. This included QA Directors who never lasted long because they’d get hired as a Producer or Director elsewhere in the studio. So, we hired this guy from BioWare who we all thought would be great. BioWare was kind of like spoiled rotten EA Royalty. But there was this mirage of excellence and professionalism and superiority around these guys (BioWare guys). Anyway, he had a loud voice, I’d often hear him shouting at people down in the QA room.
One of the things I did was handle XML scripts, but unfortunately this led to a lot of overtime for me because I was also handling all the side quest writing and research efforts. So, one of the people I recommended to take over scripting entirely happened to be one of the QA leads, someone I liked working alongside since back when I was QA Director a year or two earlier (I worked this weird QA Director/Marketing Guy/instructions author/Balance Spreadsheet owner/Device library/XML scripter/designer role before eventually becoming a full time designer, whole other story).
Anyway, time went on, things were fine, BUT there were some overly familiar relationships between our new scripter (who was formerly QA), and his former boss (the BioWare guy). So this ended in some corner cutting where our scripter began asking QA to help him experiment with something. But he was breaking new protocols by doing this, so this brought the wrath of the BioWare Director who came up to our room and started shouting at him—as though he were still a QA guy. No one was going to do anything, so I stood up defended the scripter telling the BioWare guy to calm down, and I thought it would be over, but the BioWare Director talked back to me, told me to stay out of it and we got into an argument. Long story short, I banned him from the entire floor unless it was for meetings (note, this may sound weirdly above a junior designer’s authority, but the studio culture hierarchy and the actual professional hierarchy were two different things).
Later on, I was out with people at a bar, and he was with some of the QA people. For some reason he approached me to bring up our earlier confrontation at the office… and if you know me, I can be a bit of a jerk when I was drunk, and I really wanted to be a jerk to this guy. The talk ended with him punching me several times… only I didn’t actually realize that’s what he trying to do. He wasn’t hitting me in the face, and he wasn’t very strong (I’m talking weaker than being punched by teenage girls), more like soft blows to the torso. The only way I knew he was trying to hurt me was the fact that his face was going red… He probably outweighed me by about 200 pounds, but I was taller, maybe by eight inches to a foot. Again, I got mouthy at him and, basically told him he better sit down if he knows what’s good for him. He didn’t come back to throw a drink at me, he just left the bar on his own. I think he was wearing a tee-shirt despite the temperature being like -9 degrees (Celsius).
The next time I saw him was likely about two weeks later when he was exiting the company without fanfare (Likely fired, possibly because he was miserable working there). This experience shaped my opinion of BioWare as being full of a bunch of pompous entitled weaklings. So whenever I hear something like “EA ruined this BioWare game” I always think what likely happened is that EA gave the BioWare guys all the resources and infrastructure they needed, and it’s like setting an otherwise rugged hunter gatherer in an all you can eat cake and ice cream shop.
——End of side story——
Anyway, to wrap up my previous thought and get back on track. I think the gaming industry hit a point where the money they threw at dev resources didn’t matter because the talent wasn’t there. There was a bottleneck. It’s probably worse in Japan.
So where I think things really changed was when Namco and Sega began releasing their classic game packs and Nintendo released the Virtual Shop on Wii. The Wii was already going in a different direction, although still saw more innovation than PS3 and Xbox 360 saw over the previous generation, but Wii was also looking back at the classics. Another thing was Wii and Xbox 360 both became home to very interesting indie games. Steam would follow, and then mobile, and Sony probably got onboard at some point too—but anyone who remembers the ~2005-08 era knows that Sony was becoming almost as much of a victim of their own arrogance as Nintendo had been in 1995-03 or so… Nintendo was worse, and the consequences were worse, but then Iwata came along and fixed the company. YouTube and streaming was a big part of it, people began playing these old games that looked like a lot of fun.
With Steam and mobile platforms available, dev costs were lower, and the bar for entry into the industry was lower, so it allowed the industry to decentralize at a rather rapid pace. Decentralization wasn’t new, it began with the NES at the advent of third parties with more autonomy (Namco, I believe, was the first, being they were an industry leader), but it was very slow. Nintendo has their dream team, and Sega was trying to copy, and Sony caught them both with a bat to the back of the head when PSX jumped in without all the restrictions. But while Sony had lower barriers, by the end of the PS2 generation they were locked into a philosophy of striving toward AAA style studios. That’s where Iwata’s Nintendo, Apple, Google, and Valve were able to run around them rather than into them and challenge for supremacy. The gaming market expanded as though by some kind of dark energy, but Sony has kind of stagnated—and again, it’s not from a lack of monetary resources, but because their philosophy led them into bottlenecks in software and hardware production.
What’s new on Switch this week? Apart from the bigger games (like the new Pokémon, Soulstorm, Resident Evil)
There are nine 2D platformers, an Oregon Trail game from Gameloft, four retro RPGs, a pixel game maker (Gameboy graphics), two retro sports titles, a port of the 90s arcade game Metal Black, one 8-bit racer, two card-based games (I guess those are a more recent thing), and maybe more because some of the games here aren’t obvious what they are by their covers.
There are 49 new games for last week, which is fairly regular for Nintendo Switch… I remember back on the N64 and Gamecube when 49 games in a YEAR would have been one of the better years. Part of the reason is that Nintendo limited game releases in the past to specific studios.
Sorry, another detour and this is a bit of a clarification of something I said above, but am a little too lazy to edit: ————During the late SNES and early N64 era Nintendo had something called the Dream Team (which several studios left, including Squaresoft, Enix, and Capcom) that included Rare, DMA (became Rockstar North), Midway, Acclaim Iguana (the core of Iguana split off into Retro Studios… remember them?), LucasArts, and a few others. Yeah, I know I was a big supporter of this back in the mid-1990s, and it turned out to be a disaster.————
In short, I think a lot of the reason for seeing backward trends in gaming is the decentralization of the video game industry and companies tapping into markets that were assumed not to be as big as they were. The home console industry made a huge mistake in assuming the triple A market was the spearhead. I think Nintendo probably had their eyes open the most with the Wii, given Gamecube bombed and GBA/DS were massive success stories. All of them should have saw the mobile game explosion coming—now Apple, Google, and Tencent are the three biggest success stories in gaming, and two of those companies are just platform owners, they don’t even develop games. Nintendo played a bit catch-up, but I think they did well in embracing the Wii direction and letting Switch become more or less a portable Steam alternative—much like Steam, there are bundles galore and around 2000 discount sales running in any given day, some of them up to 99% off or just “free for the next three days” although, these games are usually bad and seem like something ported out of 1982-1985.
I mean, the AAA games are there, but casual gaming dominates. This began with Brain Age back on the DS. And by casual games, I don’t mean “Games with no guns and blood” as it’s sometimes used, but in its actual meaning: a game you play for short sessions of a few minute, but login daily (usually multiple times) over a long period of time. It’s usually a live service type game. Animal Crossing is kind of a casual game, and the current most popular franchise on any dedicated console, but doesn’t fit the usual 1-3 minute play session time, it’s more around 20 minutes to about 45 minutes per day. And casual games, the ones made well, allow for communities where people can keep engaging for hours if they want. But generally, it’s not about high level graphics either for these games. But I’m drifting off topic. So I’ll end my thought stream/rant, here.