Highguard's high-risk strategy fails to pay off: A painful lesson for the industry
Hello!
What a week! No newsletter this time around? I apologize for the absence. We had some last-minute embargo shifts, but don't worry, next week will be a big one. We'll make it up to you.
In the meantime, I've got a great newsletter for you, covering my thoughts on the recent layoffs at Highguard developer Wildlight, and my optimism for the Switch 2 after reading the previews for the upcoming Pokémon spin-off, Pokopia.
Let's dive in!
Don't be your own hype
A leading publisher gave me this advice just days before Highguard's release: 'Don't be your own hype.' It's a crucial lesson for developers, especially in the live service game market.
The key to success? Letting players in early. If your game isn't perfect, early access lets you course-correct and avoid a backlash. Bungie's Marathon game is a great example. They delayed development after early access feedback, and it paid off.
Arc Raiders and Battlefield 6 also thrived with early playtests, proving that advocates are your best marketing tool. But it's not about early release; it's about building a community.
The High-Risk Strategy
Highguard's lack of public testing raises questions. Was it financial constraints? Wildlight's recent layoffs suggest limited resources for development time. This highlights a crucial industry lesson: how to manage expectations and release titles like Highguard.
Looking Back, Looking Forward
Highguard's story reflects choices made years ago. Many high-profile failures started development years ago, and industry changes won't show results overnight. Consumers will eventually complain about the abundance of AA RPGs and shooters, but the lesson is to focus on the bigger picture.
Don't be your own hype
Back to the advice: don't be your own hype. Apex Legends succeeded because it was a surprise hit. Today's market is saturated and skeptical, making Highguard's strategy risky. Wildlight's financial struggles further emphasize the need for careful planning.
Switch 2 and Pokémon Pokopia
Now, let's shift gears to the Nintendo Switch 2. I've been obsessed with its lack of must-have exclusives. While Donkey Kong Bananza and Mario Kart World are promising, they don't match the appeal of a new Mario, Zelda, Animal Crossing, or Smash Bros. game.
But what about Pokémon Pokopia? It ticks all the trend boxes: Pokémon, cozy gameplay, Minecraft-like graphics, and Animal Crossing vibes. It's exclusive to Switch 2, but its success depends on quality.
Previews are positive, and it's already a top purchase intent tracker. However, true success will be revealed closer to launch. Pokémon Legends: Arceus' late surge is a cautionary tale.
Industry Updates
Let's wrap up with some industry news:
- A tribute to Vince Zampella at DICE, the development leader behind Call of Duty, Titanfall, Apex Legends, and Battlefield 6.
- 1,200 Ubisoft employees strike over planned cost-cutting and job cuts.
- Discord introduces age verification in March, with most adults exempt.
- Supercell reports a 4% revenue drop to €2.65 billion in 2025, but grows its headcount by 30%.
- Remedy Entertainment appoints Jean-Charles Gaudechon as CEO, a 20-year industry veteran.
- Remedy's Control and Alan Wake 2 sales boost results, but FBC: Firebreak underperforms.
- Krafton posts a 22.8% revenue increase to over $2 billion, driven by PUBG growth.
- Riot Games 'downsizes' the 2XKO team, laying off or transferring 80 staff with six months' severance.
