The Video Game Industry Is Not Equipped to Handle What Comes Next

Thirty years after Toy Story chronicled a generational tug-of-war between old and new toys, a Toy Story 5 trailer shows both dolls enacting a Butlerian Jihad against tablets. The film’s creators and its intended audience now often identify less with the child playing with toys and more with the adult who has just spent dinner hearing about “looksmaxxing.” Hollywood still offers an ecosystem that serves audiences across ages; gaming does not.

It has been an ominous month for the video game industry. AI infrastructure is reshaping consumer tech, another multi-million-dollar live-service game failed to meet expectations, and Sony appears to be rebuilding in that image. Microsoft is singularly focused on AI, and as this was written the heads of Xbox abruptly announced their departure and replacement with reps from the company’s AI wing.

Those pivots happen against inconvenient player trends: more players are playing fewer games, and the titles they do play are often years old.

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