Looking back on 2024, it’s hard to deny that the year felt eerily similar to 2023. Many of the same issues lingered, including persistent job layoffs and a notable lack of major announcements that could have sparked excitement. Publishers remained fixated on live service games, despite most of these titles flopping, and there were few updates on highly anticipated projects like the Switch 2 or GTA 6.

While the tail end of the year saw some optimism sparked by an unusually strong showing at The Game Awards, the year overall felt like one of stasis. It’s unclear what exactly the industry has been waiting for, though there’s hope that 2025 will bring change. But if Xbox and PlayStation have grand plans for the future, they’re still not easy to see. Let’s review the biggest stories of the year and try to make sense of it all.

Xbox's Confusion and Multiformat Strategy
One of the most talked-about stories of 2024 was a rumor that Xbox exclusives would start appearing on PlayStation 5 and Nintendo Switch. This announcement quickly divided fans, with some expressing betrayal and others speculating wildly. Microsoft played the rumor mill for weeks before finally confirming that a select few titles would indeed be making their way to PlayStation 5, and in some cases, Switch. However, the company initially withheld details, leaving fans frustrated.

The official announcement was made awkwardly, with Xbox executives expressing discomfort at the idea of games like Starfield or Indiana Jones coming to PlayStation 5—only for one of these titles to be confirmed for Sony’s console by the end of the year. The muddled messaging only raised more questions. Microsoft’s exact stance on multiformat releases remains unclear, despite hints that even flagship franchises like Halo and Gears of War could eventually appear on PlayStation 5.

This confusion was echoed internally, with sources claiming that even Xbox employees seem unsure of the company’s direction. Some have gone so far as to describe Xbox as a "disaster."

Sony’s Strategy: The Live Service Gamble
Sony, too, remains committed to its own version of exclusivity, despite vague statements suggesting they might be open to supporting other formats. However, their commitment to exclusive, high-profile PlayStation 5 titles remains intact, with tentpole games continuing to avoid simultaneous PC releases.

Meanwhile, Sony’s ventures into live service games have not yielded much success. The year was marked by several high-profile failures, such as Concord, a game that took eight years to develop but was shut down within two weeks of launch. This marked the biggest flop in PlayStation history, yet Sony’s response was to double down on live service titles—despite the clear lack of demand for them.

The broader trend across the industry has been the failure of live service games. Titles like Suicide Squad: Kill the Justice League, XDefiant, and Skull and Bones were all victims of this misguided push. In retrospect, it was clear that many of these games were doomed from the start, though the industry still insists on repeating its mistakes.

The Layoffs Crisis: An Industry in Turmoil
2024 was a year of significant job losses in the gaming sector, with over 14,600 layoffs reported. This follows the 10,000 jobs cut in 2023, marking the post-pandemic period as one of the most turbulent in the history of the industry. The reasons for these layoffs are complex, but much of the blame falls on short-sighted companies that expected the rapid growth during lockdowns to continue indefinitely.

The increasing cost of game development, paired with the failure of live service models to deliver consistent returns, has led to mass layoffs across major players like Microsoft, Sony, EA, Ubisoft, and Take-Two. However, the Japanese gaming industry has been less affected, with most of the layoffs occurring in Western divisions.

Microsoft’s Ongoing Struggles and the Future of Xbox
While Xbox’s first-party lineup in 2024 was stronger than in previous years, especially with the announcement of titles like Indiana Jones, it’s clear that quality alone isn’t enough to reverse the fortunes of the Xbox brand. Microsoft has already acknowledged that the Xbox console cannot regain its former prominence through games alone.

This has led to talk of a next-gen console, as well as hints at a potential portable device. However, it's unclear whether these are separate projects or part of a single new device. Microsoft’s “This is an Xbox” campaign, which seemed to discourage people from buying an actual Xbox console, further illustrates their belief that the future lies in streaming and subscription services, despite the practical limitations of these models.

With Game Pass and PlayStation Plus subscription levels stagnating, Xbox's future remains uncertain. The company appears to be slowly transitioning to a model where they are more of a third-party publisher than a console manufacturer, relying heavily on streaming and subscription services.
Some successes amid failure
Despite the overwhelming failure of live service games, 2024 saw some notable successes. Sony's Hellraiser 2 became the fastest-selling PlayStation exclusive of all time - despite the majority of its sales coming on PC. Similarly, Palworld broke Steam records and sparked legal action from Nintendo, but both games saw a sharp drop in interest after their initial success. The decline in player engagement is a stark reminder that replicating Fortnite's success is no easy feat, and that the long-term appeal of many games is often difficult to maintain.
While these successes may not have changed the trajectory of the industry, they were enough to prevent publishers from abandoning the live service model entirely.
Ultimately, 2024 was a year of uncertainty for the gaming industry, marked by confusion about future strategy, continued layoffs, and the continued struggles of live service games. While there's reason to hope that 2025 will be better, this year has been one of largely stagnation. Whether this is part of a larger industry plan or simply a waiting game remains to be seen. But for now, it's clear that the gaming world is at a standstill, waiting for something - though what, exactly, remains unclear.

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