What is Happening in the Game Development Industry｜cosmix
──Deciphering structural changes in game development from the Unity 2026 survey
https://unity.com/ja/resources/gaming-report
Even under Sony’s umbrella, studios disappear.
In October 2024, Sony Interactive Entertainment (SIE) announced the closure of Firewalk Studios, the developer of “Concord.” In February 2026, it was confirmed that Bluepoint Games, known for remakes such as “Demon’s Souls,” would also close in March.Official SIE announcement, Gematsu reporting on SIE’s confirmation
Meanwhile, according to research firm Newzoo, the global game market in 2025 was worth $201.6 billion, a 9.1% increase from the previous year.Newzoo market estimates
The market is growing. Yet, creators are disappearing.
The key to deciphering this contradiction lies in Unity’s 2026 Game Development Report. What is beginning to change is not the popularity of games, but the “methods for making games and surviving.”
Chapter 1: A Prestigious Name Cannot Protect the Next Project
BioWare, the creator of “Dragon Age” and “Mass Effect,” was no exception.
On October 21, 2026, the studio officially announced its closure and the termination of early development on the next “Mass Effect.” Parent company EA confirmed this, explaining a policy to reduce the number of large-scale projects running simultaneously and to concentrate investments.Official BioWare announcement, Official EA announcement
Even a name loved for decades does not guarantee future development costs. There is a deep divide between what fans are waiting for and what a company decides to invest in next.
For Kojima Productions’ “PHYSINT,” the sales partner was also changed. In September 2026, the company announced Xbox as its new publisher and revealed that development would continue.Official Kojima Productions announcement
What these two cases reveal is that publishers providing the funds are looking to assess development risks more strictly.
EA has explicitly stated a policy of reducing the number of large-scale projects running simultaneously and concentrating investments. On the other hand, regarding the partner change for “PHYSINT,” the reasons cannot be determined from the official announcement alone.
Even taking that difference into account, the move by investors to carefully select “which works to invest in and how much” cannot be overlooked. In large-scale development, the longer completion is delayed, the more labor costs and other expenses accumulate, raising the hurdle for recouping the investment.
Because it’s a prestigious studio. Because it’s a famous creator. That alone cannot justify a massive investment.
What is being questioned is the prospect of recouping the money invested in the next project. The more cautious publishers become about risk, the more developers are required to provide not only the appeal of the work but also the persuasive power that “it can be completed at this scale and within this timeframe.”
From a publisher’s perspective, funds are not infinite. They are funneling profits from existing works and money raised from investors and banks into the next game. If development drags on, the time to recoup that capital recedes. The more that is invested in one project, the more limited the money available for other projects becomes. That is the reality behind the caution toward investment.
Chapter 2: While Waiting for Blockbusters, Small Games Sweep the Market
Behind the scenes, other ways of creating are gaining presence.
In the “2026 Unity Game Development Report,” 52% of responding developers cited “focusing on smaller, more manageable projects” as an impact of their growth strategy. 20% cited a significant reduction in development time.Unity Report, Chapter 1
The important point here is that this survey does not show that “half have stopped making big-budget titles.” The responses indicate a strategic direction, and these figures do not prove that downsizing has increased profits.
Even so, there are titles that symbolize this change.
The cooperative climbing game PEAK. The developers explain that it was created by a small team from Landfall and Aggro Crab. Interviews with the developers also revealed that it reached 2 million copies sold after its release in June 2025.Developer FAQ, Interview with developers
Pulling up a friend. Slipping. Falling along with the person you tried to help. Laughter and tension are born from the simple gameplay of “climbing a mountain together.”Official game introduction
Rather than waiting for evaluation after completing a vast world, create the core of the gameplay early, verify it, and polish it. If it doesn’t work, fix it while the damage is still minor. Downsizing is not about eliminating failure, but about expanding the scope within which you can recover from failure.
Of course, not everyone can replicate the success of PEAK. It is also dangerous to look only at successful titles and think that “you can win with a small team.”
Even so, the sequence of proving the fun before building it big is a useful reference for both major companies and small teams.
Other titles like Balatro and Vampire Survivors are also works that led to big hits starting from individual-led development. Even with a small team, you can capture a large market with gameplay ideas.
Chapter 3: What AI Brings to Game Development
AI makes development faster. So, will it also make managing a game company easier?
In a Unity survey, 62% of respondents said they used AI for programming assistance, 35% for automated playtesting, and 35% for concept art or game assets. This is the percentage of usage experience, not that the entire job could be automated.Unity Report Chapter 2
Such support has the potential to increase what small teams can try. If you can reduce the effort spent on drafting code or investigating bugs, the burden of turning ideas into a working form and verifying their fun will also be lighter.
Chapter 4: Release Date is Not the Goal, But the Entrance to Competition
A game that took years to make ends up buried without anyone noticing. For a developer, could there be anything more painful than this?
According to SteamDB statistics, the number of games released on Steam annually has increased from approximately 18,400 in 2024 to approximately 21,200 in 2025. Completing a game is a huge task in itself, but after release, you have to get it found among this vast number of titles.SteamDB Annual Release Count
Moreover, the competitors are not just new releases.
The time you finally get to play games after work or school. There, you have games your friends are waiting for you to play “again today,” or favorites you want to return to again and again. New titles need to be welcomed into that precious time.
That is precisely why what I want to deliver is something beyond just the words “this is a fun game.”
A night where you can laugh your head off with friends. A story so compelling you hate to go to sleep because you want to know what happens next.When you think, “I want to spend time like that too,” you reach for a new title.
And the work continues even after being chosen. Fixing bugs and listening to players’ voices. If it is a title that promised continuous updates, you also need the manpower and funds to keep meeting those expectations.
According to Unity’s research, as a primary countermeasure to the harsh economic environment, 24% of respondents cited expanding revenue sources beyond game sales, such as merchandise, advertising, and contract development. Unity Report, Chapter 1
Increasing ways to support development rather than relying solely on sales from a single title. Such management ingenuity will also become a strength in continuing to deliver works.
Until it is played. And until people feel glad they played it. The release date is just a point along that long journey.
Chapter 5: Who Will Support the Next Challenge?
Will large-scale development disappear, leaving only small-team development? There is no evidence to suggest that. What can be seen from Unity’s research is a movement to suppress investment risk through downsizing and increased efficiency.
Regardless of scale, the question of “why is that budget and headcount necessary?” has always been asked. However, as caution toward investment increases, that explanation will likely require more persuasiveness than ever before.
It is truly unfortunate that as a result of strict selection, there are projects that disappear without even getting the chance to test whether they are fun.
The more strictly the basis for sales is demanded, the easier it becomes for established series or projects similar to past successes to be chosen. Fun that no one has ever experienced before is difficult to explain with past numbers alone.
On the other hand, with small-scale development, there is room to test unknown ideas while keeping investment low. Making things small does not necessarily mean making dreams small. It can also be a choice to continue taking on challenges.
If viewed positively, ingenuity to suppress risk can also be a force that supports new challenges. Try things on a small scale, confirm the response, and if potential is seen, nurture it. The surplus generated by efficiency can also be directed toward the next idea.
Even in the Famicom era, many masterpieces were born from ingenuity within limited performance and capacity. Constraints can sometimes be the catalyst for creating new expressions and ways to play.
Even in this harsh environment, I would like to express my heartfelt gratitude to all the game developers who are trying to deliver new forms of fun.
I will continue to support those challenges. And I look forward to the next title that will be born beyond those challenges.
