Shareholders are expecting the game industry to collapse in 2026
<Here's the vid, and the following link is it's source: https://odysee.com/@GothicTherapy:2/EXCLUSIVE-AAA-EXTINCTION!-Investors-Brace-for-THE-END-of-AAA-Gaming-in-2026!:e
Here's the highlights:
>New COPPA (Children's Online Privacy Protection Rule) rules go into place in April that will effectively cut off all revenue (And research) related to data collecting
These new rules require that companies cannot collect
ANY data at all about the people using their software/hardware/services without first verifying that the person using said software/hardware/services
is not a minor. This includes data collected on teenagers. If the person is revealed to be a minor, then parental conscent needs to be provided before data can allowed to be collected.
Doesn't this open the door to people just changing their profile info to list them as "underage" so that companies cannot "legally" collect their data?
>New state laws around biometric data collection
States are implementing new laws that will fine companies
PER SCAN of data collection, as in every time they collect a "new" piece of data is another fine they will have to pay. And there is no limit on just how many fines these companies will be required to pay. The example given in the video is that an "
average VR game" scans your face 60 times per second, which compounds to 216k scans every hour. Meaning that companies would be required to pay 216,000 individual fines (
Roughly etimated to be over a BILLION dollars) just for that one person playing one hour of a VR game.
>Over 100 active court cases targeting game companies for "addiction mechanics" and "dark pattern monetization(?)"
Personal take: Honestly, your average case never goes anywhere because the companies (Often) never actually did anything illegal or wrong.
That being said, it's "the compound effect". One or two cases like these can be solved through agreeing to pay some undiclosed amount of money just to make it go away, and do have the ability to fight the case in court if it ever gets that far (Though practicallly unlikely). But dealing with
DOZENS of these things going through the system all-at-once is not cheap. And that's where it hits the wallet of these companies.
On top of this, the video points out that companies are expecting that they will have to change their entire business and financial structure if they lose even one of these cases, out of fear that it will set off a chain of dominos across the legal system. Remember, while I did say that it's "practically unlikely" that your average case will result in these companies losing,
it is not impossible. The overwhelming majority of lawsuits almost
never make it to trial for the simple reason that "anything" can happen in a trial, especially a jury trial, and so they want to resolve things before it ever gets to the point. But if they don't and it does come to trial, they're trusting a judge they don't know, and possibly a jury they have no control over, to rule in their favor.
But we're not done. If a single company loses a single case and have to change their entire business model, it will be like trying to stop a runaway locomotive. Either making a change that will not actually take effect for some time (
Which will result in even MORE lawsuit occuring, as you'll have some activist lawyers looking to make a quick buck), or derail the entire train. People forget just how huge these companies are. A lot of the game we just saw a few nights ago at the VGAs coming from these big companies have spent years in planning and approval. Even more so when it comes to live-service games as you see companies like SquarEnix having to cope with a decade-old spaghetti code in their Final Fantasy and Dragon Quest mobile games (
That, despite how much money they bring in, they would rather shut down those games than take the time to fix it beause the problem is just that bad). And the result will be the companies being as aggressive as possible trying to find methods to either severly cut down on their financial expenses (
Meaning more studio closures and layoffs ahead),
if not making themselves juicy targets for acquisitions (
I think we now know why EA allowed themselves to be bought out, they're making it someone else's problem).