Matthew Karch, head of Saber Interactive, recently shared his perspective on the future of the gaming industry, predicting the decline of the high-budget AAA model. Karch, whose company developed Warhammer 40,000 Space Marine 2, stated that the era of games costing $200-$400 million is unsustainable and detrimental. He believes these massive budgets are a significant contributor to the recent wave of layoffs in the industry.

The term "AAA," once synonymous with high-quality, high-budget, low-risk projects, is losing its relevance. Developers now view it as a marker of profit-driven competition that often compromises quality and innovation.

Revolution Studios co-founder, Charles Cecil, echoed this sentiment, calling the term "silly and meaningless." He argued that the shift towards massive publisher investment has negatively impacted the industry. He cited Ubisoft's Skull and Bones, initially marketed as a "AAAA" title, as a prime example of this trend. The implication is that the focus on enormous budgets has not translated into commensurate success or quality.