In a recent interview, Matthew Karch, the head of Saber Interactive, shared his perspective on the future of the video game industry. He believes the era of high-budget AAA games is drawing to a close.

The executive behind Warhammer 40,000: Space Marine 2 stated:

“I believe the age of AAA games costing $200, $300, or even $400 million is ending. It’s neither necessary nor sensible.

...To put it simply... if there's one factor that has driven industry-wide layoffs more than any other, it’s budgets reaching hundreds of millions of dollars per game.”

According to many in game development, the label "AAA" has lost its relevance. Once used to describe titles with massive budgets, high quality, and reliable success, it now often signals a race for profit over innovation and polish.

Charles Cecil, co-founder of Revolution Studios, called the term "silly and meaningless." He argued that the industry shifted when major publishers began pouring enormous sums into game development—and not for the better.

“It’s an empty and somewhat absurd label—a relic from a transition that didn’t benefit the creative side,” Cecil remarked. He pointed to Ubisoft’s Skull and Bones, which the company marketed as a "AAAA game," as a prime example.