More than three-quarters of game developers are optimistic about the gaming industry, with 77% expecting the sector to grow in the near future, driven by better access to technology, increased funding opportunities, and fewer studio closures, according to new research Metaplay.

The backend platform provider’s latest report, The Game Development Renaissance, found that innovation is thriving in the games industry, with over two-thirds (68%) of US and UK gaming developers and senior leaders expecting more, better quality games as studios shift their focus to refining and growing player engagement. 

Fuelling this evolution is the integration of AI-tech, with new design tools allowing smaller teams to quickly scale their content creation, automate QA workflows, and refine new games, effectively shortening their time to market and saving money without sacrificing creativity or quality.

That’s evidenced in the 63% of devs who anticipate lower development costs, and the three-quarters (75%) who predict that high-quality tools will become more available across the industry, allowing smaller studios to compete with more established firms.

Tools like genAI will continue to drive game production costs down by more efficiently creating character art, environments, and animation, but other emerging technologies could also have a major impact, for instance blockchain tech has the potential to solve some player-facing problems such as in-game payments and inventories. 

Almost half (48%) of developers said they are looking to adopt even more external tech this year, with 59% planning to launch a game within the next twelve months because of better access to advanced tooling outside their studio. 

“We’re seeing potential to do things that have never been done before,” said Robin Squire, CEO of Helsinki-based game studio Black Block.

“The technology out there today, with the vast scale of advancements in networking tech, will help developers unlock new design and development paradigms and allow them to push past boundaries that previously seemed impossible.”

Emerging technology might be a catalyst for democratising game production, but new sources of funding are helping smaller studios find their feet. More than three-quarters (77%) of developers expect increased funding for new studios, coming from a range of sources including crowdfunding, angel syndicates and community-backed investments. 

According to the report, that diverse access to capital could allow developers more creative control and flexibility in the future than traditional VC funding would allow.

These fresh funds, combined with a growing and active player market, might see a spike in studio acquisitions and exits, with Metaplay’s survey finding 73% of developers anticipating consolidation within the industry, although with a growing pool of potential buyers emerging independent studios could be in stronger positions to make deals.

“The past couple of years have been bumpy,” said Alexi Ryan, a global talent acquisition consultant who has worked with Microsoft and Rovio.

“We’re seeing some correction moves from shareholders, but the industry is still profitable and growing year over year.”