“It’s always the quarterly profits,” he continued, “the only thing that matters are the numbers, and then you fire everybody and then next year you say ‘shit I’m out of developers’ and then you start hiring people again, and then you do acquisitions, and then you put them in the same loop again, and it’s just broken… “You don’t have to,” Vincke went on. “You can make reserves. Just slow down a bit. Slow down on the greed. Be resilient, take care of the people, don’t lose the institutional knowledge that’s been built up in the people you lose every single time, so you have to go through the same cycle over and over and over. It really pisses me off.”
Source: Baldur’s Gate 3 boss blasts publisher “greed” behind layoffs | Eurogamer.net
This isn’t unique to the gaming industry. This is the same problem all corporations have had since the 80’s. The problem is tying executive compensation to stock options. The “number must go up,” no matter what, so that the charade of the stock price being tied to news about the company’s financial position can continue, and thus everyone in management and the Wall Street banks makes money. Until this loop is broken, this short-term thinking will continue, in every industry and every large company in the US. (And as private equity continues its death march from coast to coast, there won’t be any small companies soon, anyway.)