Gaming was at an all-time high because people couldn't do anything else besides game, watch TV and have sex (either of the two major forms of individuals that occur in many species and that are distinguished respectively as female or male especially on the basis of their reproductive organs and structures).
We all knew that it would not last but somehow all these publishers decided to hire anyone who applied. Not only that, but some of the gaming vets also started to create their own studios as well. 3-4 years later, we have all these layoffs and studio closers because things have gone back to normal. In addition, whichever genres were popular years ago, has no market anymore. Just look at Concord.
Most of these larger businesses are run by professional managers, or industry vets who learned the professional management doctrine. This is what people are taught in MBA programs. One of the core tenants is when you're doing well, you go all-in and invest, expand, and make bigger plans because you may not get another shot to do so in the future. Publicly traded companies are often not allowed to build up a huge war-chest of cash to help them survive tough times. Investors want to get paid ASAP and don't care about the long term health of the company.
Part of that professional management doctrine is that professional managers and executives are not supposed to fear/avoid downsizing and layoffs in the future. You're supposed to be able to put your feelings aside (assuming you have some to begin with) and do whatever is optimal for the business. I didn't go to business school, but I made the move from being a SME into a Management role about 6 years ago. One of the first challenges I had to face was reducing the headcount of my department, which meant I had to lay off one of the guys I was closest to at my company. We had been work friends for 10 years. That was the challenge of being a manager - could I set my emotions aside and do what the math said was best for the business? It sucked, but I did it, and it was the right thing for the business. I still feel guilty about it to this day.
Only private businesses run by leaders who are interested in building something sustainable and stable are able to architect their companies in such a way that it's in-line with our natural emotions. I always think of
Erik Wolpaw:
"In 2004, Wolpaw was diagnosed with
ulcerative colitis. Expecting his condition to require a departure from the company, he spoke with managing director
Gabe Newell, who surprised him by offering an extended leave with pay. "Your job is to get better," Newell said. "That is your job description at Valve. So go home to your wife and come back when you are better."
That's what a privately run company with a caring leader can do. Big companies just don't work that way, so we shouldn't expect them to. I got a job working for a small privately held company in 2007, and I'm still there for exactly this sort of reason. They don't look at me as a slot on an Org chart - they look at me the person first, and value me for what I am able to contribute to the business.
/soapbox
With video games, it's just unreasonable to expect a major hardware OEM or publisher to be anything other than a publicly traded company. As such, they have to play by the professional management doctrine. Their purpose is to maximize value and/or dividends for shareholders. They're not in business to build and support a tribe.
