Saber exec: Game industry must look beyond North America to dilute risk
Saber Interactive chief creative officer Tim Willits has issued a stark warning to the video game industry: relying solely on North American markets is no longer sustainable. Speaking at Gamescom 2026, Willits argued that studios must expand their geographic footprint and adopt slate funding models to dilute financial risk in an increasingly expensive development landscape.
Willits noted that the current industry reckoning—marked by layoffs, divestments, and financing droughts—is not necessarily a global collapse but rather a reflection of how costly it has become to build games specifically within North America. This region remains home to massive publishers like Microsoft, PlayStation, and Ubisoft, where mammoth operations move slowly and struggle to adapt to changing economic realities.
"The mammoth publishers are in North America and mammoth anything takes a long time to change," Willits explained during his conversation at Gamescom. He highlighted that the struggles of these classic American publishers ripple out to affect other major global entities. In contrast, Saber Interactive operates with 3,500 employees across 15 studios worldwide but maintains no development operations in North America, choosing instead to locate teams in more economical regions.
Willits criticized the traditional model where large groups of super-talented people are paid high salaries to work on a single game, only to face a "ramp up and ramp down" cycle that often leads to wasted resources. He pointed out that entire teams frequently spend months working on projects only to scrap them and start over—a practice he described as inefficient.
To illustrate the potential for efficiency, Willits cited Saber's 2020 title SnowRunner. The off-road driving simulation generated hundreds of millions in revenue despite costing only around $6 million to produce. He contrasted this with large North American teams that might spend three months on a project only to torch it and begin again, noting that some AAA titles have massive budgets but questionable returns.
He also referenced World War Z, which has been played by 32 million people and was developed by a team of around 50 people. For Willits, overscoping or "level sprawl" is the death of profitability. He emphasized the need for discipline, citing an example of a detailed adventure game where every book in the library was a real, unique book—a level of detail he felt was unnecessary and costly.
Willits proposed that studios should look to secure around half their production costs via "slate funding." This model, originating from the film business, involves investors backing multiple projects simultaneously. If one title underperforms, it does not result in a total crashout for the investor. Willits explained that Saber uses co-investments and co-development strategies to spread risk.
"If a game then does well, you have to share that profit, but you both win together and you don't lose as bad if it doesn't work out—especially if you have a number of games in the pipeline," Willits added. This approach allows for reliable, consistent income streams from remasters like Hitman and ports, which support the "big swings" required for ambitious new projects.
The strategy involves working with real developers located in regions such as Spain, Germany, Portugal, or England, rather than simply outsourcing assets. By spreading their operations across different economic zones, Saber aims to create a more resilient industry model that can withstand the volatility of the current market.