Dominant
Studio investment in games plummets
Determines how to read every “we are focusing on smaller experiences” statement of the next two years. Ball's own data shows capital contraction rather than a design movement, and the two produce identical press releases.
Live in
- Global
Where it stands
Studio investment has fallen about 85% from its 2021 peak to below 2019 levels while revenues rose 30 to 40%, and Matthew Ball's 2026 report argues the industry now invests less in new game development, as a share of net revenue, than at any point on record. Marvel's Spider-Man went from just over $100M to more than $300M across three games without proportionate sales. Studios are shipping smaller. The argument is whether that is a chosen strategy or a budget line. The composition is moving as well as the total: Values Value's Talent Signals report, reported in September 2026, puts European studio spending on external talent up 63% in 2025 against 55% globally, and describes a two-tier team model of a small permanent core with a contractor periphery hired by project phase. A falling investment line and a rising outside-hands line are the same decision seen twice.
Further reading
The timeline, consequences and objections for this trend are not written yet. What it is and its reading list are above.