Games fundamentally require a lot of artistry, depend on user device performance, and involve many factors to consider. from engine licensing costs to labor cos

Games fundamentally require a lot of artistry, depend on user device performance, and involve many factors to consider. from engine licensing costs to labor costs. There's this concept of 'AA games' or 'Myst games' that sit between AAA and indie titles. From what I hear across most of the industry and genres, as people's disposable income shrinks, the market is polarizing into reliable AAA games on one side and small, niche indie games on the other. Small indies can bet on extreme gameplay that big companies would never attempt. In other words, when people start cutting back on hobbies, the first thing they reduce is spending on hobbies. And when they start tightening further, the first games to get dropped from their lists are the mid-tier ones. Whether it's software or any genre market, this middle tier is disappearing because consumer spending itself is becoming extremely polarized. This is a contradiction in cost structure. When developing software, reducing the size to a mid tier level doesn't linearly reduce fixed costs. You still need to build server infrastructure, payment systems, security, basic UI/UX, cross platform support, and more, all of which come with enormous upfront costs. AAA companies can amortize these fixed costs by selling to millions of users, but a AA studio with limited capital ends up spending most of its budget just on infrastructure, leaving few resources to polish the core value of the product, graphics, gameplay fun, and design. Also, when a recession hits, a cognitive tandem effect occurs. Only two things survive: what everyone else is playing, and niche products that match your personal taste. Mid tier products with moderate price and moderate quality require marketing efforts to convince consumers of their ambiguous value, often relying on influencer reviews or other forms of consumer persuasion.