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I wonder how much of that is a little bit of the Hollywood tax arrangement sort of thing. Do studios purposefully arrange their profits so that they never actually make money on games?
It seems that many studios hire then fire then re-hire people and are constantly re-structuring studios on a project by project basis.
They wouldn't be able to sustain it if money wasn't being made somewhere...
Soul
One thing that surprises me is the gaming industry is huge these days, estimated $160bn this year with esports worth another billion. Yet studios seems to be constantly closing and restructuring, esports tournaments seem to be organised on a shoe string and the only person making any money out of it is EA and Ubisoft.