Myst Devs Hit Funding Wall for New Game

Cyan Worlds, the studio behind the groundbreaking Myst series, has put its new darker chapter, codenamed Anglerfish, on hold indefinitely. Despite developing a playable demo and pitching to numerous publishers, the studio failed to secure the $1 million to $10 million needed for completion. This situation reflects a broader collapse in funding for double-A video games, a market segment situated between large triple-A productions and small indie studios.

The venture capital funding for the video game industry has plummeted by over 75 percent since its 2021 peak. This downturn is largely attributed to the surge in interest rates, making capital more expensive and prompting investors to become more conservative. Publishers are now hesitant to fund mid-market projects, leading to studio closures and scaled-down game designs. Platforms like Steam are also flooded with low-quality games, eroding user trust and discoverability, further complicating the challenge for mid-budget titles.

Despite these challenges, some developers are exploring alternative funding routes like crowdfunding and specialized game funds. Cyan Worlds, financially stable due to its successful back catalog, is proceeding with a smaller-scale Myst universe game. However, many studios anticipate further closures as the industry grapples with this funding crisis, underscoring the difficulty of developing games in the $2 million to $15 million range.