Is the Video Game Industry Headed for a Crash?
There’s been quite a lot of gloomy speculation about a potential video game crash coming. After heavy layoffs over the past two years, the cancellation of big budget titles continues to add fuel to the idea that the numbers aren’t adding up.
Recent Disappointments
We saw several disappointments last year. Sony’s Concord was the biggest flop, while Ubisoft’s Star Wars Outlaws failed to ignite and the company delayed Assassin’s Creed Shadows and disbanded its Prince of Persia team. Now Sega and Sports Interactive have scrapped Football Manager 25 (FM25), which has inevitably added to the sense of malaise.
Cancellation of Football Manager 25
The cancellation of FM25 has led to much speculation, but does it really suggest a video game crash is more likely? No, it doesn’t. Sure, it’s a surprising move for an annual sports franchise, but FM25 was so far delayed that it reached the point where releasing it now would make little sense.
Releasing a Game at the Wrong Time
The Football Manager games are usually released in November, early in European football seasons. Releasing one halfway through the season would be terrible timing for a football game, and it would mean barely half a year on the market before the release of a successor, FM26, presumably in November of this year.
Cancellation: A Matter of Time, Not Demand
The cancellation of the game is not because of numbers or a lack of demand (Sports Interactive has said that all pre-orders will be automatically refunded) but of time. We were promised that the game would be a major leap forward for the series, but it seems achieving that in the time available was overly ambitious.
Statement from Sports Interactive
"We’ve had clear validation for the new direction of the game, but we’re not where we need to be," Sports Interactive said in a statement. "As extensive evaluation has demonstrated, including consumer playtesting, we have clear validation for the new direction of the game and are getting close – however, we’re too far away from the standards you deserve."
Focus on FM26
"We could have pressed on, released FM25 in its current state, and fixed things down the line – but that’s not the right thing to do. We were also unwilling to go beyond a March release as it would be too late in the football season to expect players to then buy another game later in the year."
The company says it’s now focusing on polishing things for FM26, which is still slated for a November release.
Is the Video Game Industry Headed for a Crash?
Some still fear we’re at the beginning of a ‘Second Video Game Crash’, the first being that of 1983. But despite the turbulence and devastating layoffs, sales appear to be holding up pretty well overall, with a record year in 2023. According to figures on Statista, there was a slight dip in the US in 2024, but sales in Europe actually rose.
The Industry Today
Things are very different today compared to 1983. There’s lots of competition because there are lots of publishers. And it’s hard to conceive we’re really in the midst of a video game crash when the PS5 Pro has just been released, Nintendo is expected to release Switch 2 on 2 April, and Grand Theft Auto 6 is on the way.
Conclusion
The cancellation of FM25 is not a sign of a video game crash, but rather a decision made by Sports Interactive to focus on delivering a better product. The video game industry is not heading for a crash, and sales are still strong. With new titles and consoles on the horizon, there’s no reason to believe the industry is in for a downturn.
FAQs
Q: What does the cancellation of FM25 mean for the future of the series?
A: The cancellation of FM25 means that Sports Interactive is focusing on polishing things for FM26, which is still slated for a November release.
Q: Is the video game industry headed for a crash?
A: No, the cancellation of FM25 is not a sign of a video game crash. Despite recent layoffs and delays, sales are still strong, and new titles and consoles are on the horizon.
Q: What is the main reason for the cancellation of FM25?
A: The main reason for the cancellation of FM25 is the lack of time to deliver a high-quality product. The game was delayed, and releasing it now would have been too late in the football season.
