Bloomberg’s investigative journalist Jason Schreier has shared why publishers are obsessed with live-service games.
According to Bloomberg investigative journalist Jason Schreier, understanding why publishers pursue live-service games requires looking at the economics of game development. In his new video, he explained that a live-service project is simply a title designed around recurring monetization. Rather than generating revenue from a single purchase, these games encourage players to continue spending money over time through subscriptions, expansions, cosmetic items, battle passes, or other in-game purchases.
The growing obsession with live-service games originates largely from the escalating costs of AAA development. During the 2000s, major publishers could release multiple big-budget games every year, often spending between 10 million and 30 million US Dollars on each project. Today, however, development budgets can exceed 200 million or 300 million US Dollars, dramatically increasing the financial risks involved. According to the investigative journalist, game companies can no longer rely on simply releasing a steady stream of new games and expecting enough hits to offset the misses. Modern development cycles often stretch 5 to 7 years, meaning a single commercial failure can have serious consequences for a company’s financial health.
Successful live-service titles generate recurring revenue, creating a stable financial foundation that helps companies weather the uncertainty of the hit-driven gaming business. Schreier brought up early examples such as EverQuest and World of Warcraft, but added it was Fortnite that truly transformed executive thinking. By attracting millions of players with a free-to-play model and then monetizing cosmetics, seasonal content, and other digital items, the game demonstrated how lucrative recurring spending can be.
The investigative journalist noted that game companies have historically rushed to replicate trending genres, from MMORPGs after World of Warcraft to MOBAs following League of Legends. Live-service games became the latest gold rush after publishers witnessed Fortnite’s extraordinary success.
Schreier said that executives are not necessarily pursuing live-service games out of greed. Instead, they operate within systems that prioritize shareholder value and risk reduction. A successful live-service game can provide dependable income that helps offset the occasional flop, making it easier for publishers to survive in an increasingly expensive and unpredictable industry.
