I’ve been studying the current state of the gaming industry, and here’s the truth. . .we are still very early.

The gaming industry has been in deep recession for a little over a year. 

Mass layoffs have hit major studios, and even profitable indie teams face the threat of closure by year-end.

This downturn stems from skyrocketing user acquisition costs.

Until last year, mobile CPIs hit $4.30 on iOS and $1.15 on Android, while AAA studios with decades of fan loyalty were dropping marketing budgets upwards of $300 million just to stay relevant. It's unsustainable.

The system feels broken but we can take the right steps to ensure we don't go down the same path. 

Instead of funneling billions into ads that may or may not convert, investing in meaningful connections with players would provide exponentially better ROIs. 

The primary goal should be to build ecosystems where players are more than users assuming more ownership of the games.

The bottom line? Good games win. 

The industry needs to refocus on what matters: delivering incredible player experiences and fostering authentic connections. 

At SURGENCE, we are proud to be working alongside partners and clients who share this same vision.

Come back to this tweet at the end of 2025 🫡