Video games are risky, expensive, and a really good business

Making video games is an exercise in cognitive dissonance. It is a hit-driven business where you can never know how consumers will respond. And yet you have to invest tens (sometimes hundreds) of millions of dollars just to have a shot at success. Despite that risk and expense, however, a lot of companies are learning that it’s riskier to get out of the games business. That’s a lesson that Konami and Disney learned the hard way throughout the ongoing pandemic. And it’s leading those corporations to dive back into the gaming market.

After spending years going through the motions with its annual soccer franchise and mobile games, Konami is returning to the console space. The publisher has plans to bring back Metal Gear, Silent Hill, and Castlevania. Likewise, Disney is in talks to partner with developers and publishers for a number of games based on its properties. In particular, Lucasfilm has several public and unannounced Star Wars projects in negotiations. But we even see Disney playing nice with Nintendo to get Sora, the star of the Square Enix-Disney co-production Kingdom Hearts, into Super Smash Bros. Ultimate.