Epic CEO Sweeney: Industry in worst crash since 1980s, AI making it worse
Epic Games CEO Tim Sweeney told Edge magazine that the video game industry is in its worst downturn since the 1980s crash, and he blames the AI boom for worsening it. In the magazine's latest issue, which gathers industry leaders including former PlayStation chief Shawn Layden to address what it calls "Crash 2.0," Sweeney said an "unprecedented wave of investment" in AI systems and data centers is driving up component prices.
"We're getting the short end of the stick, and the prices of RAM and storage are quadrupling, and not necessarily stopping there," Sweeney told Edge's Alex Spencer. He said the hardware crunch could extend for three years.
Sweeney, often an AI cheerleader whose company has put AI-generated content in Fortnite, sounded cooler on the technology now that data centers compete with game makers for components. He also said he regrets humoring trends like NFTs, saying "everyone was ripped off in the process."
Layden suggested major studios get comfortable earning $50 million from a game instead of $500 million. Tencent's Amir Satvat and others admitted the industry was overoptimistic about AI replacing large teams.
The head of one of gaming's biggest companies is publicly blaming the AI infrastructure boom for a hardware cost crisis he says could last three years, signaling a shift in industry sentiment toward AI.