Why not just make multiple AA games simultaneously if you have a big workforce?
My statement responds to this directly. It's all about what you can budget. Cost is more than just developing a game.
For one, yes, a big change in development management might require a one time-cut that is harsh. That is the irresponsible staff bloat that people have been talking about.
For two, however, why would AA-games necessarily require smaller teams? The price of a game won't go down, so you can still pay people. The big advantage of going AA would be that dev times could go down to, say, 2 years instead of 4-5 years and more projects could be done. This would make singular games bombing less risky, because the next project to hopefully make a profit would be along the corner already.
I don't think it necessarily follows that having more people on a smaller project means the game gets done quicker. I imagine it is more often
the opposite. Having 10 people working on textures when you only need half of that can cause problems. Having 5 people making GUI buttons when you only need 2 can cause problems.
Too many cooks in the kitchen.
I keep going back to this though that the quality of games like Mass Effect 2 was perfectly fine. If developers just made games of that quality (plus the free modern effects of Unreal Engine 5), they could just focus on content creation, gameplay and story and deliver fantastic games that take like 2 years to make. This whole "gamers demand highend AAA-graphics" never made sense to me, considering how people keep praising 4K-rendered emulation of Switch-games, which is literally a click or two. If people are happy with that, they'd be happy with Mass Effect 2 in 4K, too. Or any 360-era title.
This whole graphics race is one of the most mislead things ever, but somehow influential people managed to get everyone to ridicule Nintendo for taking it slower, rather than stepping back a bit and think about what it means to always demand the highest end stuff. Gimme a Mass Effect 2 every two years instead of Mass Effect 4 in 2028 (hence why I thought about Mass Effect :/ ).
Thing is: I don't think we necessarily need to sacrifice bleeding edge graphics in smaller games. It's the cinematic aspects that modern games have adopted that have increased the scope of projects beyond comprehension - celebrity voice actors and mocap actors, cinematic directors, set pieces, etc. etc.
A mechanics-focused game can look awesome, and I believe, sell, but the modern industry doesn't know how to market that, it seems.
Also, there needs to be better production pipelines, which, again, can actually be helped by reducing staff, I imagine.
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Sorry for the double, but another thing that comes to mind about the "Increase the AA production" thing is, as I stated in my first post: the entertainment industry
at large is super-bloated right now.
There is more quality entertainment available across every medium than any one person can possibly consume. Throwing more games onto the pile isn't going to help that. Look at the indie spaces.
If you took away video games, movies, television, audiobooks, books, podcasts, twitter, instagram, tiktok - I'd still be okay, because I can get 90%+ of entertainment needs satisfied by youtube alone.
The entertainment industry at large could use less releases for some time.