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As 2024 kicks off, the gaming industry finds itself in a familiar scenario, marked by layoffs, "for sale" signs, and closures. However, amidst the gloom, there's a glimmer of hope with modest sales growth. The folks at GamesIndustry caught up with Nacon's Head of Publishing, Benoit Clerc, to get insights into the industry's current state and Nacon's unique approach to navigating the challenges.
Clerc identifies a significant factor contributing to the industry's challenges – an oversaturation of games in the market. He attributes this surplus to investments made in the post-COVID boom when every game seemed to turn a profit. Now, with a flood of games vying for attention, getting noticed has become increasingly difficult.
Nacon's strategy, according to Clerc, revolves around strong positioning for each game release. He highlights the success of Nacon's November release, Robocop: Rogue City, citing it as an example of targeting a niche audience effectively.
In acknowledging Nacon's position as a mid-tier publisher, Clerc emphasizes the importance of catering to specific gaming communities rather than competing directly with AAA blockbusters. By understanding and targeting niche audiences, Nacon aims to deliver games tailored to passionate communities, such as off-road racing enthusiasts or fans of rogue-like and sports games.
Despite not matching AAA budgets, Clerc notes the industry's trend of escalating production values and budgets. Nacon, too, is investing more to meet rising customer expectations and foster innovation, learning from experiences like The Lord of the Rings: Gollum, which faced challenges in catering to a mainstream audience.
Discussing Nacon's expansion through studio acquisitions, Clerc emphasizes the company's approach of giving creative freedom to its developers. The company has acquired 16 studios in the past four years, integrating them smoothly without imposing a centralized process.
Switching gears to Nacon's peripheral business, Jack Reynolds, Nacon USA President, shares insights into the challenges and innovations in the accessory market. He highlights the continuous evolution of gamepads with each platform iteration and the efforts to exploit new features.
Addressing the impact of the digital shift on retailers, Reynolds acknowledges the changing landscape but believes in the enduring presence of brick-and-mortar stores. He sees Nacon's unique position, combining publishing and accessories, as an opportunity to create distinct propositions for consumers in the evolving gaming landscape.
As Nacon navigates the complex gaming terrain of 2024, their dual focus on tailored game releases and innovative peripherals showcases a strategic approach to stay relevant in an ever-changing industry.
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