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posts from @Adell tagged #videogames

also: #videogame, #video games

(article transcribed below)

Life By You, Paradox Interactive’s potential The Sims 4 competitor, has been canceled. Paradox Interactive deputy CEO Mattias Lilja announced the game’s cancellation in a post on the publisher’s forum. “Sadly, we’ve decided to cancel the release of our long-awaited life sim Life by You,” Lilja wrote. “This was an incredibly difficult call to make and is a clear failure on Paradox’s part to meet both our own and the community’s expectations.”

Life By You was last scheduled for its early access release on June 4, but Paradox delayed the game indefinitely on May 20. The May delay was the third time the early access release was pushed back — it was first intended for September 2023, March 5, then June 4. Lilja said the game had “incremental improvements” with each delay, but that the road to release was “far too long and uncertain.” Here’s Lilja on the delay:

A few weeks back, we decided to hold off on an Early Access release in order to re-evaluate Life by You, as we still felt that the game was lacking in some key areas. Though a time extension was an option, once we took that pause to get a wider view of the game, it became clear to us that the road leading to a release that we felt confident about was far too long and uncertain. This is not to say the game has not shown any promising qualities; Life by You had a number of strengths and the hard work of a dedicated team that went into realizing them. However, when we come to a point where we believe that more time will not get us close enough to a version we would be satisfied with, then we believe it is better to stop. This is obviously tough and disappointing for everyone who poured their time and enthusiasm into this project, especially when our decision comes so late in the process.

At the end of the day, our job is to release games that are fun, interesting, and challenging for our players, and our every decision should be taken with that purpose in mind. When we get that right, we earn our pay. So, how do we ensure we don’t find ourselves here again? Honestly, there are no real guarantees. Games are difficult to get right, and we’ll definitely make mistakes, which, as these things go, always become painfully apparent in hindsight, but still shouldn’t reach this kind of magnitude regardless. We have to take a long and hard look at what led us here and see what changes we have to make to become better. In the end, our mission remains the same, and we’ll continue to take whatever steps we need to do just that.

In a news release published on the Paradox Interactive website, CEO Fredik Wester said a version of Life By You that met the publisher’s expectations was “too far away.” Paradox Interactive is expecting its second quarter financial results to be “negatively impacted” by the game’s write-down of development costs — adding to a poor performance with recent releases, according to Wester.

“We’ve performed poorly in recent releases,” Wester said. “Even though we now start new projects in a different manner, it is clear that we must make further changes so that quality is more consistent and the promises we make to our players are met. We have to evaluate how we manage projects and how we organize, for we will and must get better. We have a very solid financial position and a strong core game portfolio, which keeps us confident about our future.”

Paradox announced Paradox Tectonic, the studio tasked with developing Life By You, in 2019. Led by former Sims lead and Second Life creator Linden Labs CEO Rod Humble, Paradox Tectonic officially announced Life By You in 2023. Life By You was expected to stand out from the crowded life sim genre with deeper roleplaying elements. With the cancellation of Life By You, that genre just got a little less crowded — but there’s still Paralives, inZOI, Project Rene (aka The Sims 5) and an unnamed life simulator from Midsummer Studios.



(Article transcribed below)

It's now been eight months since SAG-AFTRA members voted in favour of a strike authorisation in the games industry due to stalling negotiations over the Interactive Media Agreement.

The bargaining has been ongoing since October 2022 with companies including Activision, EA, Epic Games, Insomniac, WB Games, and more – all firms working with actors on voice and motion performances for video games.

While SAG-AFTRA has not moved forward with its strike as of yet, dialogue reached a bit of a dead end soon after the authorisation was approved, and the parties have still not reached an agreement. Despite progress elsewhere – for instance, with Replica Studios over ethical use of AI voice work – negotiations over the Interactive Media Agreement feel like they're almost at a standstill despite several rounds of bargaining.

"The line is drawn very clearly in the sand around AI as an issue," says Sarah Elmaleh, voice actor (Anthem, Where the Water Tastes Like Wine), and chair of the Interactive Media Agreement negotiating committee at SAG-AFTRA. "We both brought a number of proposals to this package, and we resolved those over many months of bargaining, and things have really narrowed, focused, and scoped to the issue of AI, and whether the bargaining group is willing to extend protections comprehensively to all members and performers within SAG-AFTRA."

SAG-AFTRA executive director and chief negotiator Duncan Crabtree-Ireland tells us there's been proposals back and forth in the past couple of months between the union and the companies, in particular regarding AI.

"But unfortunately, as Sarah alluded to, the core issue hasn't been resolved," he continues. "And that core issue, if you really boil it down to its essence, is that, as a union, our expectation and our demand is that all of our members be protected with respect to AI. There are fundamental protections that we expect to see in all of our collective bargaining agreements, with all of our employers, and that need to protect all of our members."

While the companies have agreed to "many, if not all, of those protections," Crabtree-Ireland explains that some "have refused to extend them to all of [SAG-AFTRA] members who are working under those contracts."

"And as a union, we're not leaving any of our members behind in the process of negotiating these kinds of protections. And frankly, these protections shouldn't be that difficult to agree to. They're basic."

He points to the long road SAG-AFTRA had to travel to reach similar agreements with film studios and streaming companies last year, with a five-month strike eventually leading to setting guidelines around AI use, among many other things.

"Since that time, we've negotiated these types of protections with the major record labels without having to go on strike, we've negotiated them with the TV animation companies without having to go on strike, we've achieved them in other agreements like the Replica Studios agreement [around] video game voice replication, and we've embedded them in the new tiered Interactive Media Agreement. And since that time a number of companies have signed to those agreements.

"So it continues to mystify me why there is such sort of aggressive resistance to providing just basic protection, respect, and comfort to people so that, when they go to work, they're not putting themselves out of a job by enabling a company to use them to compete with themselves for the next job. It shouldn't be so difficult."

When trying to understand why SAG-AFTRA is met with such resistance from game studios, Crabtree-Ireland says some might have a "philosophical mindset about AI."

"They want to make a battle maybe because they're scared about what the future of AI brings for their own companies and they don't want to commit to something," he says. "I understand that, especially in the generative AI area.

"For example, one of the areas we've been challenged in bargaining over is the question of limitations on inputs for training data and AI models. But that's not what we're fighting over in this negotiation. So let's be clear, we're not talking about their ability to remain competitive with other AI companies that are outside of this bargaining group, because that's not what we're talking about. What's at issue with this negotiation is not inputs into training data. What's an issue in this negotiation is the idea that when a performer is engaged to work for these companies, that there should be limits on the use of that work without consent, without fair compensation, by the use of AI in subsequent projects and things like that.

"It's a very specific kind of protection that's unique to performers in a lot of ways and is entirely consistent with what we've sought and achieved with these other big companies – ironically several of which are owned by the same parents as studios and streamers who've agreed to those very provisions in film and television work."

Crabtree-Ireland mentions that the principles SAG-AFTRA has been fighting for have had a lot of public support, including "from people who normally don't like unions at all," he laughs.

He mentions the recent issue between Scarlett Johansson and OpenAI, with the company allegedly stealing the likeness of her voice for use in ChatGPT. While the firm refuted the accusations, the actress revealed that she had repeatedly been approached by the company to lend her voice to the chatbot, but declined. Crabtree-Ireland points to the fact that the actress had an immediate outpouring of public support, adding: "I think companies are running a real risk if they underestimate how the public will react to them not treating workers fairly in the context of AI."

Elmaleh emphasises that Johansson's plight highlights a less-discussed risk that AI presents for performers.

"There's this scenario where you go to work and are actively providing material that could potentially be used to replace yourself, which is terrifying. So that scenario must be accounted for, again, for all performers, and some partial coverage has been gained so far there, but it's a question of not leaving anyone behind.

"However, the other potential [aspect] that needs to be accounted for, and that we have in our proposals that has been repeatedly rebuffed, is around that scenario where, in this case they ask – it was really less of an offer than a threat – Scarlett and be like, 'Hi, we'd like to hire you to do this' and she said no, and then [they] turn around and simply get something approximate out of a generative AI system, without her ever having provided those materials in the course of her work with them.

"And so the question of prompting a system and asking it to invoke a performer based on a character that they're known for, or based on their name itself in a way that's really recognisable and obvious inspiration, that scenario also really needs to be accounted for. And that one we are still looking for really significant movement on."

With AI protection for all SAG-AFTRA members being the primary delay to the negotiations, we ask the pair whether a strike is getting more and more likely.

"There may be a point soon, if not where we're at now, where those proposals are looking similar coming back and forth, or the changes or the progress is looking slimmer and more marginal, at which point you're questioning: are we moving towards a deal or not?" Elmaleh says.

"And then at that point further pressure needs to be applied. The pressure applied by the strike authorisation yielded more results, and so we've been working with that, and then building other strategies… But when productivity kind of runs out in that process, then further pressure needs to be applied."

Crabtree-Ireland says he finds it hard to see how SAG-AFTRA would compromise on protection for all its members, which is what could eventually could lead to a strike.

"What needs to happen in order for this to move forward and us not to end up on strike against these companies is for them to revisit their resistance and their insistence on sort of splitting off our members and protecting some and not others – that's how this ultimately gets resolved," he says.

"So at this point, I would say there is a really real possibility that's trending towards probability that we will be on strike against them in the next 30 to 45 to 60 days. We want to exhaust every opportunity to try and resolve these things without having to actually pull that trigger on a strike."

Unionisation has historically been lagging behind in games, with workers in the industry slowly catching up with protections that are more standard in film. When we mention that reality and ask what needs to change for games to reap similar benefits, Elmaleh says she's interested to see what will come out of the current situation.

"The truth of any sort of basis of a union is that you have to resist," she says. "Corporations don't give things. Employers don't give things without resistance. To come into that awareness as a worker that you have something that they need, and that it is leverage that can be applied effectively – and has been proven to be applied effectively through collective action throughout history – is an awareness you need to step into and really take ownership of it. It takes a fight.

"But what precipitates a willingness to fight is the kind of situation that we're in now. The layoffs have been absolutely brutal. That sense that sustainability isn't a priority for some of these folks… that the people who are currently deciding how things are run may no longer be acting in your interest, or that it will take a certain degree of frustration, disillusionment with the system that exists currently, and a willingness to build a new system… Unfortunately for some people, I think it takes a really dark, difficult moment like this to be like, 'You know what? I'm ready to try and really fight to make this look different for everyone's benefit'."

Crabtree-Ireland adds that a lot of employers have an outdated view of what it means to work with unions, and that it's not about disrupting business operations.

"It's the contrary," he says. "We want that to happen. We just want it to happen under terms that are fair, equitable, and respectful to the creative talent that's essential to their success."

Another outdated view is the idea that workers raise issues because they don't care about their work. Here again, it's the opposite.

"For anyone who's still labouring under that: it's not true," Elmaleh says. "It's just that companies may not have the mandate of individual worker career sustainability and longevity in mind. That's not part of their goal set. If you love this work, you want to do it for a long time, you want it to be sustainable, and it is therefore required, just out of the forces of nature, for a counter force to advocate for that, and to really stand firm with that perspective in mind… So I think for folks who are looking at this as a big nasty fight: it's really just about setting a boundary."

Looking ahead, both hope for an agreement to be reached, via a strike if needs be. Crabtree-Ireland leaves us with a thought on what could lie beyond that agreement, especially when thinking about the future of AI.

"We can all see that AI is going to continue to evolve," he points out. "And that means that our contract, terms, and provisions that relate to AI are also going to continue to evolve.

"And in fact, with the pace of evolution of AI, we've seen the evolution of our agreements actually happen quickly, even since last November, when we finalised the deal with the studios and streamers. Once this contract issue is resolved, my vision is that the companies realise that the best way for us to deal with that evolution is a continual process of collaboration and working together to find that path that is appropriate, respectful, protective, and human-centred, as far as AI evolution goes.

"And that, as challenging and as difficult as this particular negotiation process has been, that it doesn't have to be replicated going forward because we can see how there is a path into the future where we work together."



(article transcribed below)

The video game industry reached a grim milestone in 2023 as the year closed with more than 10,000 layoffs affecting programmers, quality assurance workers, sound designers, and artists — alongside countless other people and job titles. But the new year did nothing to stop the trajectory of layoffs. Just days into 2024, more than 2,000 video game industry workers were laid off from game engine maker Unity and streaming platform Twitch — and in the months that followed, that number continued to climb. Now, the industry has reached another unfortunate landmark event: Just six months into the year, the total number of video game industry layoffs in 2024 has surpassed 2023’s total of just over 10,000.

The numbers, for both 2023 and 2024, are conservative, community-counted estimates from technical artist Farhan Noor’s layoff tracker and from Polygon’s own count; there are likely well over 10,000 people laid off from the video game industry across the globe. Though the data is not exact, it tells a devastating tale — as CEOs bemoan an economic downturn, the workers who make games continue to suffer the consequences of leadership’s decisions. Of course, video game companies are still hiring, and some, like Nintendo, continue to up their employee pools. Although hire-and-layoff cycles aren’t necessarily uncommon in the video game industry — The Conversation rightly called it a “long-standing structural issue” in which companies boost hiring during production, then fire workers after launch — the scope of the current situation is unprecedented.

Even Geoff Keighley, the video game industry’s unofficial hype man, could no longer ignore reality: Keighley briefly paused the sparkle and shine of his Summer Game Fest broadcast to acknowledge the layoffs and studio closures.

The video game industry isn’t necessarily doing badly. Market analyst Newzoo estimated that the global video game industry would generate $184 billion in 2023, a return to growth — albeit a small one — after a minor decline in 2022. Individually, the big companies vary: Take-Two Interactive hasn’t been profitable lately, and it saw major layoffs weeks after it spent $460 million to purchase Gearbox. Electronic Arts reported net revenue growth of 2% just months after it laid off 670 people during a company “refocusing.” At Sega, profits are up, yet Sega laid off hundreds and divested from Age of Empires 4 studio Relic. (Sega’s good profits were, however, largely due to its pachinko business — not video game success.)

But despite the reality of the financials, the number of layoffs, studio closures, and divestitures cannot be understated or ignored; this decline continues to impact the health of the industry and the people who make it run. Companies are hiring, but it isn’t happening fast enough for a lot of developers. Over the past several months, Polygon has spoken to dozens of video game industry workers who’ve collectively submitted hundreds of applications, but who hear back on very few of them.

“It feels like I’m at the bottom of a pile and they keep pouring more people on top of me,” a game designer laid off in September 2023 told Polygon. “The cynical part of it is, yes, there’s this part of me that’s like, Oh man, the job market is even more rich with excellent candidates. My chances of landing a job have just become that much smaller by virtue of numbers alone. I hate having that thought, but I do. The entire industry is hurting.”

The confusion of it all extends to Microsoft, too, which recently shut down three studios and absorbed a fourth into another — and one of the shuttered studios, Tango Gameworks, released a critical and commercial hit for Microsoft in 2023. According to The Verge, Xbox Game Studios head Matt Booty told staff that Microsoft needed more “smaller games that give [it] prestige and awards” — arguably a good description of the success of Tango Gameworks’ Hi-Fi Rush.

Among the layoffs and closures, several projects have been canceled or delayed, making it inevitable that the video game release schedule will be impacted by this period. You can see the impact of the past several years already, in fact. There hasn’t been a blockbuster game from a AAA studio in 2024 — it’s been successes from a whole bunch of indie studios all the way down. The weirder-than-usual schedule may be due to slowdowns related to the current industry landscape, with the biggest titles all pushed out to 2025, putting the biggest companies with ballooning budgets, massive teams, and expanding timelines on edge.

Midsize and small teams are not immune. Most recently, Phoenix Labs and Singularity 6 both laid off dozens of people, while indie developer Die Gute Fabrik closed entirely.

Why is this happening? It’s complicated. Executives often point toward a challenging economy following the COVID-19 pandemic — businesses expanded to meet demand, but realized they overinvested when it inevitably constricted. The money used to make games, wherever it’s from, is expensive to borrow, as inflation and interest rates continue to rise. And that’s if you can get money from investors, because that money has all but dried up.

On the player side, people are spending less money on video games, despite engagement staying stable.

“Gaming’s long-term tailwinds haven’t changed — there are over [100 million] new gamers born every year, there are more indie successes than ever, the medium’s creative achievements continue to grow (and expand into books, film, TV) — but without material growth in players or spending, or new breakout genres… the challenges seem likely to continue,” video game investor and The Metaverse author Matthew Ball told Polygon in February.

Players are also playing differently. People are spending a lot of time in just a few games, instead of dipping their toes into the gamut. And in response, publishers and developers are adjusting. Roblox and Fortnite are masters of this: People play a lot of these games and new content is always coming out, but these developers use player labor to update the game through the so-called creator ecosystem.

“Companies want to sell these transformations to us as new forms of innovation — but really, what motivates a lot of this activity is the fear of having the value of one’s platform degrade,” Laine Nooney, New York University assistant professor of media and information industries, told Polygon over email in January. “There is, of course, a $1 million question lurking under all of this: if these platforms were only profitable when they were experiencing 400% engagement booms because everyone was locked indoors, are any of these businesses actually profitable at the scale their investors gambled on? What, exactly, is propping up all of these valuations?”

Layoffs and studio closures are the solution for executives looking to cut costs and therefore increase the numbers on a sheet of paper. What’s lost in it all is the devastating impact on the people who make games — some of whom may end up leaving the industry altogether. “There’s this existential crisis of, Has any of this hard work been worth it if I can’t stay in my career?” a community manager laid off in 2020 told Polygon. “I don’t want to leave games, but I feel like I have to.”

There’s also a massive loss of institutional knowledge at each individual studio as companies drop employees with long tenures and valuable skills, not to mention the cancellation of games that could have been your next favorite. It doesn’t feel like the industry’s layoffs will end soon, which puts its people in a precarious place. Like the movie industry, the video game sector seems to have a “survive till ’25” mentality — but what happens then? There’s no doubt the impact of the past several years will bleed into 2025 and beyond.