Former God of War Director Warns Major Publishers

Former God of War Studio boss Meghan Morgan Juinio has warned major publishers not to focus solely on big-budget AAA games. As the gaming industry grew, so did the scope of the games themselves, but the big players in the field also faced disappointing sales and financial difficulties. Now the ex God of War director offered some insight into how companies might avoid the worst consequences of these trends.

Kratos wielding the Blades of Chaos against an enemy - God Of War Ragnarok

God of War stands alone as a massively successful AAA franchise. The revision of the current generation that started in 2018 was a hit and now there are indications that the new God of War is in development, possibly either a main game set in Egypt, or a spin-off that may delve into another genre. While the details are still a mystery, hype is high for the franchise, but one of its former leaders has hinted that the industry may have to step back from such big AAA releases, at least a little.

Former Santa Monica studio head says major publishers should look to diversify into Double-A and Single-A

In an interview with Game Developer Juinio, who served as Santa Monica Studio's Co-Head and Director of Product Development until June 2025, said that major game publishers have focused too much on AAA titles after the pandemic. Juinio expressed his belief in the “power of creativity and innovation” in games, saying that looking beyond big-budget projects and exploring more experimental games with lower investment can deliver the results studios want. It's easy to see where this line of belief comes from, as last year, Split Fiction has sold more than four million copies in just months, while EA's main titles have the likes of it Dragon Age: The Veilguard and EA Sports FC 2025 fell short of expectations.

Zoe and Mio with dragons in Split Fiction

At the same time, Juinio wasn't entirely writing about AAA games, emphasizing the “potentially really big” payoff when an expensive title with a long development cycle does well. But she stressed that pouring more resources into these kinds of games without diversifying into other, perhaps more creative, projects may not help break the cycle of layoffs, closures and cancellations that plagues the industry. Despite some massive recent launches, times have not been kind to the gaming sector, with Microsoft laying off thousands of employees in 2025 and many developers seeing their doors close and projects shut down.

So far, it doesn't look like AAA games are getting any smaller or smaller. There are many games in the pipeline with budgets in the hundreds of millions GTA 6 it's rumored to have a $1 billion budget, so it'll be interesting to see how it plays out and how it affects the industry. Of course, there are still independent success stories to show for it Hollow Knight: Silksong. The future is uncertain, but at least some vets believe gaming needs to diversify to thrive.