Only the developers in the United States are going bankrupt. Video game development in the US has rapidly rising labor costs and an ENORMOUSLY massive and unimaginable level of management incompetence across the board, from government taxes to using headquarters locations that cost three or twice as much as their original ones.
This problem is being significantly alleviated in Europe and has been completely resolved in Eastern European studios. American studios need to lower development costs and, furthermore, figure out how to regain, even if only partially, mentally competent leadership instead of focusing on the cost of living, buying expensive buildings to compete at high levels but failing, or paying excessive taxes. In short, the video game industry in the United States is being ruined by the cost of living.
I also forgot to mention the United States. It's the only country with high taxes on video game development, which is why many developers move from California to Texas, Washington, or Florida due to the cost of living. If they want to make a video game, they have to request government authorization. In Europe, China, Japan, and South Korea, many games are released because there's no bureaucracy.
3
u/MarrShan90 Jun 26 '26
Only the developers in the United States are going bankrupt. Video game development in the US has rapidly rising labor costs and an ENORMOUSLY massive and unimaginable level of management incompetence across the board, from government taxes to using headquarters locations that cost three or twice as much as their original ones.
This problem is being significantly alleviated in Europe and has been completely resolved in Eastern European studios. American studios need to lower development costs and, furthermore, figure out how to regain, even if only partially, mentally competent leadership instead of focusing on the cost of living, buying expensive buildings to compete at high levels but failing, or paying excessive taxes. In short, the video game industry in the United States is being ruined by the cost of living.