Saber's Matthew Karch: "The AAA model is going to change"

10.04.2024 - 17:43 / gamesindustry.biz / Matthew Karch / Saber Interactive

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The games industry's current troubles have been well documented by this point and, looking at the release slate for the rest of the year, you'd be forgiven for thinking there's not much cause for optimism on the horizon.

While there are still a number of AAA games heading to consoles and PC by the end of the year, it's currently a quieter line-up than we would historically expect and some heavy hitters that are most likely to move the needle, such as Grand Theft Auto 6, aren't due until next year. The release of new platforms usually injects capital into the market and fuels opportunities for growth but the next such launch — Nintendo's successor to the Switch — is also not expected until 2025.

Saber Interactive CEO Matthew Karch believes this is not just down to the current downsizing of the industry, but also to flaws in the AAA model that brings in the most revenue.

"Games are getting cut left and right, so there's going to be a situation – and I think it's already starting this Christmas – where you're going to see a real scarcity of games," he tells GamesIndustry.biz. "There's less coming out. The consolidation that's been going on in the industry is gonna hurt that as well, and the costs and the turmoil that the industry has been going through… Teams will regroup but the capital at the moment, it just isn't there. And so the industry is actually contracting somewhat and the supply of content is going to be way short of the demand."

Despite this grim outlook, he believes Saber Interactive — the company he co-founded in 2001, which has reclaimed its independence after being sold by Embracer Group — will be able to thrive thanks to a steady flow of titles in its pipeline and "being able to produce games at a price point where we can be adaptable with the way we bring those games to the market." And the price point is a crucial factor for Karch.

"We don't have to sell a game for $70," he says. "I'd prefer not to, I think that's expensive, I don't like that. It's almost not fair. Part of the reason Helldivers 2 has had the success that it's had [is] because it comes in at a much lower price point and it's accessible.

"Five years ago, all you heard about was the next Assassin's Creed or the next Call of Duty, Far Cry, Battlefield, or whatever else it was; the whole industry waited with bated breath for those games to come out, those were the juggernauts. But now you're seeing stuff like Palworld, Helldivers 2, and Valheim coming out and killing it. People are realising that there's [an] opportunity to make great entertainment at a price that isn't going to kill somebody's bank account."

Saber's biggest upcoming game this year is