Space Marine 2 developer studio boss prophesies the death of AAA games

Matthew Karch, head of Saber Interactive, recently shared his perspective on the future of the gaming industry, predicting the decline of the high-budget AAA game model. Karch, whose company developed Warhammer 40,000 Space Marine 2, stated: “I think the era of $200, $300, $400 million AAA games is coming to an end. I don't think it's necessary. And I don't think it's appropriate… I think if anything has contributed to job losses [mass layoffs in the game industry] more than anything else, it's a budget of a few hundred million dollars [for games].”
This sentiment echoes a growing trend among developers who find the "AAA" designation increasingly irrelevant. Once signifying high budgets, superior quality, and low risk, the term now, according to many, represents a profit-driven competition that compromises quality and innovation.
Revolution Studios co-founder, Charles Cecil, called the term "silly and meaningless," attributing the negative shift in the industry to major publishers' significant investments in video games. He argues that this change hasn't been beneficial. Ubisoft's Skull and Bones, marketed as a "AAAA" title, is cited as a prime example of this trend.
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