This is self explanatory; to all who do not support the idea of ownership, there shall be no more funding, regardless of their game’s quality.
Advice:
buy from GOG, avoid single player games which require internet connection or 3 party launchers.
Repost from reddit:
https://www.reddit.com/r/StopKillingGames/comments/1ugzirg/stoppayinggames/
Again, I’m going to point you to the AI industry, which has never posted a profit but which still pays some of the highest salaries in the industry.
You’re also fully neglecting the concept of the Loss Leader which exists to onboard people to a system despite losing money on a given product.
Not even discussing the hobbyist developers (originating whole genres of gameplay purely out of personal passions), the notion that games will go away or that studios must be profitable isn’t reflective of how games are developed in reality.
None of those things can happen indefinitely. Loss leaders make up their profits on the back end; the classic example in this industry is selling a console at a loss while selling software at higher margins.
AI is still in the investment phase. By anyone’s account, this is a bubble about to burst, investing in something that doesn’t generate enough money to justify the investment. It won’t do that forever. I’d be surprised if it continues without a major correction in a few years. No one can predict how or when it will happen, but we’ve seen so many bubbles throughout history. They all need sustainable profit eventually, or they become a disaster. Gaming already had its own bubble in the wake of the pandemic, and that’s where these layoffs are coming from.