Should AAA Studios Revisit Retro Style Games?

The AAA video game industry stands at a turning point.Facing runaway development costs, dwindling consumer trust, and rising market instability, big studios must adapt to a rapidly changing market.Could the answer lie in the unlikeliest of places: reviving retro-style games?That idea may not be as far-fetched as it sounds. A growing body of evidence suggests it’s not only possible, but perhaps essential, to reevaluate the market viability of 2D and 2.5D games.The surprising success of retro style games like Shovel Knight, Cuphead, Octopath Traveler, and Bloodstained proves there’s a considerable and underserved market for games that marry classic aesthetics with modern design sensibilities.Related: Why Millennial Devs Can’t Make Authentic Retro GamesTo understand why going back might be the way forward, let's look at the challenges facing the big game studios.The AAA sector is plagued by issues eerily reminiscent of the circumstances that led to the 1983 video game crash.These include:

• Market Saturation: Digital storefronts are flooded with releases, making it harder for even high-quality titles to stand out
• Skyrocketing Budgets: AAA games now rival or exceed blockbuster movie budgets, demanding massive sales just to break even
• Consumer Backlash: The constant push for monetization tactics like microtransactions and unfinished, buggy releases (looking at you, Cyberpunk 2077) has eroded consumer goodwill.

If these trends continue unchecked, the AAA segment could face a reckoning.Related: Is a Second Video Game Crash on the Horizon?So, what do retro style games offer?The indie sector has shown that retro style games are more than a nostalgic indulgence—they’re a viable market with massive potential.Consider the following success stories:

1. Shovel Knight (2014): This love letter to NES-era platformers became a breakout hit, selling over 2.65 million copies and winning multiple awards. Its success has sustained developer Yacht Club Games for nearly a decade
2. Cuphead (2017): With its hand-drawn animation inspired by 1930s cartoons, this challenging run-and-gun game sold over 6 million copies within three years and earned critical acclaim for its artistry
3. Octopath Traveler (2018): Combining SNES-era JRPG aesthetics with modern HD 2D graphics, this Square Enix title sold over 3 million copies, proving that even AAA publishers can find success with retro-inspired games
4. Bloodstained: Ritual of the Night (2019): This spiritual successor to Castlevania demonstrated that classic 2D gameplay could thrive in a contemporary market, earning over $20 million in revenue.

These games not only performed well commercially but also garnered lasting fan loyalty. They show that retro aesthetics, far from being obsolete, can provide a fan-pleasing and profitable alternative to the bloated complexity of many modern AAA releases.Related: How AAA Studios Killed 2DGiven these factors, from a sheer business perspective, AAA should reconsider their approach. Re-embracing retro style games could address several of AAA’s most pressing problems:

• Reduced Costs: 2D and 2.5D games generally require smaller budgets and teams, lowering the financial risk associated with development
• Creative Constraints: Working within the stylistic and mechanical limitations of retro design can foster innovation and elevate craftsmanship, as seen back in the golden age of 2D gaming
• Appealing to Nostalgia: Retro style games tap into a deep well of nostalgia among generations X and Y. Even Zoomers appreciate the old classics' timeless gameplay and aesthetics
• Rebuilding Trust: Releasing polished, artistically rich games could help AAA repair strained relationships with consumers, positioning studios as creators of high-quality entertainment instead of crass profit seekers.

Which brings us back to the question that kicked off this post: Should AAA studios revisit retro style games?AAA studios must revitalize their catalogs to stay competitive. While cutting-edge 3D blockbusters won't be going anywhere anytime soon, a return to the craftsmanship and charm of 2D and 2.5D games could provide the lifeline the industry needs.By taking a cue from indie success stories and reintroducing retro style games, AAA developers could reignite the passion of disillusioned gamers and secure their long-term viability.After all, when you're heading for a cliff, the first to turn back is the first to make progress.

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