Former God of War director issues a warning to major publishers

Previous God of war studio head Meghan Morgan Juinio has warned major publishers not to focus solely on big-budget AAA games. As the gaming industry has grown, so has the scale of the games themselves, but major players in the space have also struggled with disappointing sales and financial difficulties. Now the former God of war Director has offered insight into how companies can avoid the worst consequences of these trends.

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

God of war itself emerges as a hugely successful AAA franchise. The current redevelopment that started in 2018 was a resounding success, and now there are signs that a new God of war is in development, possibly either a main game set in Egypt or a spin-off that could dive into another genre. While the details are still a mystery, hype is high for the franchise, but one of its former leaders has suggested that the industry may need to move away 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 a conversation with the game developer, Juinio, who served as Santa Monica Studios co-head and head of product development until June 2025, said that major game publishers have become too focused 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 to explore lower investment but more experimental games could deliver the results studios want. It's easy to see where that belief line comes from, as last year, Split Fiction sold more than four million copies in just months while EA's major titles like Dragon Age: The Veilguard and EA Sports FC 2025 met expectations.

Zoe and Mio with dragons in Split Fiction

Meanwhile, Juinio didn't write off AAA games entirely, highlighting a “potentially really big” payoff when an expensive title with a long development cycle does well. But she emphasized that pouring more resources into these types of games without diversifying into other, perhaps more creative, projects may not help break the cycle of layoffs, shutdowns and cancellations sweeping the industry. Despite some massive launches recently, times have not been kind to the gaming sector, with Microsoft laying off thousands of employees by 2025 and many developers seeing their doors closed and projects shut down.

Currently, it doesn't seem like AAA games are going anywhere or getting any smaller. There are many upcoming games with budgets in the hundreds of millions, including GTA 6 rumored to have a budget of $1 billion, so it will be interesting to see how these play out and affect the industry. Of course, there are still indie success stories to be seen as well, as evidenced by Hollow Knight: Silk Song. The future is uncertain, but at least some industry vets believe gaming needs to diversify to thrive.