It’s interesting how interconnected those points are.
Generative A"I" drives GPU prices up. NVidia now cares more about it than about graphics. AMD feels no pressure to improve GPUs.
Stagnant hardware means that game studios, who used to rely on “our game currently runs like shit but future hardware will handle it” and similar assumptions get wrecked. And gen A"I" hits them directly due to FOMO + corporates buying trends without understanding how the underlying tech works, so wasting talent by firing people under the hopes that A"I" can replace it.
Large game companies are also suffering due to their investment on the mobile market. A good example of is Ishihara; sure, Nintendo simply ignored his views on phones replacing consoles, but how many game company CEOs thought the same and rolled with it?
I’m predicting that everything will go down once it becomes common knowledge that LLMs and diffusion models are 20% actual usage, 80% bubble.