Gaming Industry Faces Reckoning Over Unsustainable AAA Development Costs

Matthew Karch cites Volition's closure and Saints Row's struggles as signs of an industry in need of change.

Volition, the studio behind the Saints Row franchise, was shut down in 2023 after 30 years, following the underperformance of the 2022 reboot.
Matthew Karch, founder of Saber Interactive, criticized the lack of direction and high costs at Volition, stating the studio was unsustainable.
Karch highlighted that nine-figure game budgets yielding eight-figure revenues are creating instability across the gaming industry.
The Saints Row intellectual property is now owned by Embracer's subsidiary Plaion, but its future remains uncertain with no new projects announced.
Karch emphasized that the era of extremely high-budget games is waning, with only top-tier franchises like Grand Theft Auto able to justify such costs.