The Future of Gaming in 2025: AI, Live Service Fatigue & Industry Shifts

Key Takeouts

• AI in game development is a double-edged sword, offering efficiency but risking a loss of creative integrity.

• Live service models are losing favour, with audiences seeking more meaningful, contained experiences.

• The console wars are fading, as access and cross-platform experiences become more important than hardware.

• Funding challenges threaten innovation, with financial pressures limiting the scope for experimental game development.

• GTA 6 will be a defining moment, setting the tone for the future of AAA gaming and open-world experiences.

The global games industry in 2025 finds itself in an era of transformation, teetering between innovation and instability. What was once a space of boundless expansion has hit an inflection point, where technological disruption, economic pressures, and shifting player expectations are forcing the industry to redefine itself. The question now is not simply what games will look like in the coming years, but whether the structures that have sustained the industry for decades can continue to hold.

One of the most contentious developments is the increasing presence of AI in game development. On the surface, AI-powered tools promise efficiency—faster asset creation, streamlined animation, even AI-driven narrative design. But beneath the surface lies a deeper, more uncomfortable debate. What happens when automation starts to displace human creativity? The industry has always thrived on artistic expression, on the distinct fingerprints of developers crafting something singular. If studios prioritise AI-generated content to cut costs, will we see a decline in the uniqueness that makes games a cultural force? The push-and-pull between technological progress and creative integrity is set to define this decade.

Beyond the question of AI, the business of gaming itself is under scrutiny. Live service models, which once seemed like the holy grail of engagement and revenue, are now facing significant fatigue. While some franchises continue to dominate, the market is oversaturated, and audiences are growing weary of time-consuming, microtransaction-heavy experiences that demand continuous investment. Players are signalling a desire for more contained, meaningful narratives rather than endless content cycles, yet publishers are still gambling on the next big live service hit. The industry stands at a crossroads—will it double down on a model that is proving increasingly unsustainable, or will it recalibrate to meet the changing desires of its audience?

At the same time, the hardware landscape is undergoing a shift that few could have predicted a decade ago. The traditional battle between gaming consoles is becoming increasingly irrelevant as cross-platform play, cloud gaming, and subscription services break down the old silos. The latest console iterations have struggled to justify their existence in a market that is no longer defined by hardware exclusivity. For the new generation of players, access and experience outweigh brand loyalty, and the companies that embrace this reality will shape the future of the industry.

But for all the conversations around technology and business models, one of the most urgent challenges facing game development today is funding. Even as gaming continues to expand its cultural footprint, financial pressures are mounting. Major studios are downsizing, independent developers are struggling to secure investment, and the market is flooded with an overwhelming volume of new releases competing for limited attention. Where does the money come from for the next wave of truly groundbreaking games? If the financial structures underpinning the industry continue to shrink, we risk a landscape dominated only by the safest, most commercially viable projects, leaving little room for bold, experimental work.

Perhaps the clearest indicator of where the industry is heading lies in the anticipation surrounding GTA 6. Few games carry the weight of expectation quite like this one. Beyond being a guaranteed commercial juggernaut, it will set a precedent for the future of open-world gaming, player-driven content, and the broader blockbuster gaming experience. Will its approach reaffirm the industry's reliance on vast, expansive worlds, or will it point toward a new direction where more curated, concentrated experiences take centre stage? More than just a release, its impact will be a statement on where gaming is headed.

As 2025 unfolds, it is evident that gaming is in a moment of cultural and structural transition. The industry must decide what kind of future it wants to create—not just in terms of technological advancement, but in how it values creativity, sustainability, and the communities that sustain it. Whether this moment leads to reinvention or stagnation will depend on the choices made now, but one thing is certain: the future of gaming is being written in real time.

Hermès: The Masterclass in Cultural Relevance and Timeless Brand Marketing

View this post on Instagram

A post shared by Hermès (@hermes)

Brilliant Social Media: The Digital Luxury Standard

In the digital-first era, luxury brands often struggle to balance reach with exclusivity. Hermès, however, has perfected this art by curating a social media presence that enhances rather than dilutes its brand cachet. With over 10 million followers across platforms like Instagram, Facebook, and Twitter, the brand has built a storytelling ecosystem that showcases its craftsmanship, creativity, and artistic vision.

Instead of using social media as a direct sales tool, Hermès has adopted an approach that prioritises authenticity and engagement. The brand offers glimpses into its ateliers, artisan stories, and dreamlike campaign visuals, reinforcing the mystique and desirability of its products. This careful curation ensures that digital engagement elevates Hermès’ exclusivity rather than diminishing it.

Heritage in the Digital Age

The challenge for any luxury brand is how to maintain exclusivity in a digital-first world. Social media, e-commerce, and influencer marketing have disrupted traditional luxury marketing models, often diluting brand cachet in the pursuit of reach. Yet, Hermès has proven that a brand can embrace digital transformation without losing its aura of exclusivity.

Instead of flooding digital platforms with aggressive sales tactics, Hermès has built a storytelling ecosystem that amplifies its craftsmanship, creativity, and artistic vision. The brand’s social media presence, particularly on Instagram, is a case study in understated luxury—offering glimpses into its ateliers, artisan stories, and dreamlike campaign visuals rather than hard-sell promotions. This approach keeps Hermès aspirational, ensuring that digital engagement enhances rather than erodes brand desirability.

High-Tech Meets High-Touch: Innovation Without Compromise

One of Hermès’ most strategic moves has been its ability to leverage technology in ways that align with its brand ethos. The Apple Watch Hermès collaboration is a perfect example: rather than simply licensing its name, Hermès co-created a product that seamlessly fuses craftsmanship with contemporary tech. This move expanded its audience to a younger, digitally native luxury consumer while reinforcing its values of quality and design excellence.

The brand has also embraced digital retail experiences without turning into a mass-market e-commerce brand. With immersive online experiences such as virtual scarf try-ons and sophisticated online appointment booking systems, Hermès ensures that digital convenience does not come at the expense of personalisation and luxury service.

The Power of Cultural Symbolism

Few brands have turned their products into cultural symbols as effectively as Hermès. The Birkin and Kelly bags are not just accessories; they are status symbols that transcend generations, continents, and even industries. While some brands chase fleeting trends, Hermès plays the long game—its slow production cycles and limited availability create a demand-driven desirability that most fashion houses struggle to achieve.

This scarcity strategy aligns perfectly with the modern consumer’s craving for authenticity. As luxury loses meaning in an era of mass production, Hermès continues to reinforce the idea that true luxury is not about price alone—it’s about artistry, patience, and exclusivity.

Cultural Relevance Through Artistic and Experiential Marketing

Beyond product, Hermès consistently invests in cultural storytelling. Its annual theme-driven campaigns, such as "Let’s Play" in 2022 and "Astonishing Hermès" in 2024, transform its collections into immersive narratives. These campaigns go beyond seasonal trends to create deeper emotional connections with consumers, positioning Hermès as a curator of culture rather than just a fashion house.

Experiential marketing is another cornerstone of the brand’s cultural strategy. The Hermès Carré Club, an interactive pop-up event celebrating the artistry of its silk scarves, demonstrated how luxury brands can create real-world engagement without cheapening their image. These moments reinforce Hermès as a living, breathing cultural force rather than just a static luxury brand.

Lessons for Brand Marketers

Hermès is not just a luxury fashion house; it is a brand marketing masterclass. In a time when many brands risk losing their DNA in the pursuit of digital relevance, Hermès has shown that true cultural influence comes from:

1. Authenticity Over Trend-Chasing – Maintaining a clear brand identity rather than reacting to every passing trend.

2. Strategic Digital Integration – Using technology to enhance, not replace, craftsmanship and storytelling.

3. Cultural Storytelling – Positioning products as cultural artifacts rather than mere commodities.

4. Experiential Luxury – Creating immersive, exclusive brand moments that reinforce desirability.

As the luxury landscape continues to evolve, Hermès provides a blueprint for how brands can maintain cultural relevance while staying true to their heritage. In a world of fleeting trends, Hermès remains timeless—a brand that does not follow culture but defines it.

Navigating the Future of AI in the Music Industry: UK Music CEO Tom Kiehl Raises Concerns at Westminster

24th January 2025

The intersection of artificial intelligence (AI) and copyright law is one of the most pressing topics facing the creative industries today. In a landmark meeting at Westminster, UK Music CEO Tom Kiehl led the charge in raising concerns over the Government’s proposed “opt-out” mechanism for text and data mining. This proposal has sparked significant debate among industry leaders, MPs, and peers, with six All-Party Parliamentary Groups (APPGs) convening to discuss its potential impact on creators and rights holders.

In a meeting that underscored the importance of protecting creators in the evolving digital landscape, Kiehl highlighted several key challenges and flaws in the proposed AI framework, warning of significant risks to the music industry and its £7.6 billion contribution to the UK economy.

Key Takeaways from Tom Kiehl's Address:

🚨 Practical Challenges: Unreasonable Burden for Creators

The proposed opt-out mechanism would require creators and rights holders to notify multiple AI platforms individually, creating a significant administrative burden. This level of engagement is simply not practical for many smaller creators, who may lack the resources to navigate the complexities of these platforms. The sheer scale of this challenge would make it difficult for creators to effectively protect their work in a rapidly evolving technological landscape.

🚨 Lack of Transparency: How Can Creators Ensure Their Rights Are Respected?

One of the most concerning aspects of the proposal is the lack of transparency surrounding the opt-out process. Without a clear and reliable way to ensure that opt-out requests are honoured, creators and rights holders are left in a vulnerable position, uncertain whether their intellectual property is being used in line with their wishes. In an age where trust and transparency are paramount, this is a significant gap in the proposed legislation.

🚨 Technological Limitations: AI Can't Selectively Remove Data

Kiehl’s address also underscored a critical technical issue: AI models cannot selectively remove individual pieces of data once they have been included in the training process. This means that even if a creator opts out, there is no clear way to erase their data from models already trained, leaving their rights at risk. The challenge is not just one of policy; it is a technological limitation that renders the current approach practically unworkable.

🚨 Lessons from the EU: Uncertainty and Low Uptake

Looking across the Channel to the EU’s opt-out mechanism, Kiehl pointed to the legal uncertainty and low uptake among rights holders. The lessons from Europe are clear: opt-out mechanisms can lead to confusion and create a barrier for creators who may not fully understand their rights, or who are unable to navigate the complex legal landscape. The UK must avoid replicating these issues if it is to protect the interests of its creative industries.

🚨 Impact on the Music Sector: Risks to the UK’s Cultural Economy

The music industry is a cornerstone of the UK’s economy and cultural identity, contributing a staggering £7.6 billion annually. The opt-out proposal, without proper safeguards, could damage the livelihoods of creators, from songwriters to performers, and undermine the sector's ongoing growth. The Government must ensure that any AI-related legislation considers the unique challenges faced by the music industry, ensuring that creators' rights are not sacrificed in the name of technological innovation.

🚨 Need for Centralisation: A Unified Approach

Currently, there is no centralised repository for opt-out requests, a key flaw in the proposal. Without a unified system, creators and rights holders are left to navigate a fragmented landscape, making it difficult to effectively protect their work. Kiehl stressed the need for a centralised mechanism that could streamline the process and ensure that creators have the tools they need to safeguard their intellectual property.

The Call for Stronger Protections: A Critical Moment for UK Music

Given the vital role that music plays in the UK’s economy and culture, Kiehl urged Parliamentarians to ensure that the consultation process delivers robust protections for creators. As AI continues to reshape industries across the globe, it is essential that the creative sector is not left behind. The Government must take heed of the concerns raised today and work towards a solution that balances the opportunities AI offers with the protection of intellectual property rights for creators.

The conversation around AI and copyright in the music industry is far from over, but today’s meeting at Westminster has set the stage for a deeper, more nuanced debate. With so much at stake for the UK’s creative economy, now is the time for meaningful action.