With the unprecedented failure of Concord we're almost there in the west. The last of ESG funds and government welfare needs to dry up. Just like in 1983 the video game industry crash mostly happened in the US. Japan's video game industry was still going at that time.
The industry won't go away but it'll shift. The game studios in the USA and western Europe will shut down. The AAA studios will rise in China and the indies will go to Eastern Europe. Nintendo will keep doing its own thing.
China now has a foothold in the AAA space thanks to Black Myth Wukong. This was helped by all the free marketing that was given by the game journals. I'm sure a bunch of people bought BM:W just to spite Kotaku and Sweet Baby Inc.
I'm actually happy the Western game industry is becoming radioactive. The woke shit they pushed is demonic. It's not just bad media, it was designed to actually make people hate it. I don't think that other points in history made culture that was as insufferable as the woke games of current year. The turd on top of this trash pile is our tax dollars went into making this woke shit.
Rest in radioactive piss, western game industry...
Not necessarily, but they need to have a publisher who will enforce a turn on them. Creative Assembly went pretty woke and tried to create an arena shooter named Hyenas that would have been on par with Concord in terms of "comically over the top woke". They poured so many resources into it it started affecting their work with Total War games, especially Warhammer 3, and then lied that they had moved people for it.
But eventually, Sega realized just how off the rails the whole process had become around the time they released a beta (which flopped) for Hyenas as well as a trailer. So Sega sent a man in a suit with interesting tattoos with orders to inflict pain upon the gaijin, Sega reorganized Creative Assembly with one studio being entirely shut down and some directors being fired, and then gave them orders that in no uncertain terms amounted to "Stay in your lane, make Total War unless we tell you otherwise." And they did indeed bounce back pretty well and fixed the reputation and quality of TWW3, as well as Pharaohs (which had also had a mediocre launch), and announced they were putting all their effort in a major historical title.
But I do agree that a studio with publishers willing to do that is fairly rare.