Xalavier Nelson Jr. on why the Switch 2 won’t solve the industry’s sustainability problem

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Conducting an interview with Xalaiver Nelson Jr. presents a challenge. Typically, when I interview someone, we converse for about 30 minutes to an hour. My responsibility afterward is to sift through the conversation, extract the intriguing or insightful statements, and present them in a manner that keeps the reader engaged by providing relevant context.

As a gamer, I’ve gone through my transcript with Nelson Jr. multiple times, and let me tell you, his insights are golden. I’m not here to idolize him like some kind of auteur deity – trust me, he’d come after me in person if I did that! But I do appreciate his thoughtful perspective on the gaming industry.

Apart from creating unique, sometimes unconventional games such as El Paso, Elsewhere, CLICKHOLDING, and Sunshine Shuffle, Xalaiver Nelson Jr. frequently advocates within the gaming industry, emphasizing the flaws in game development systems and explaining how these issues negatively impact everyone. This was the focus of his speech at the FÍS Games Summit held in Galway.

Don’t Let The Bastards Win

In his discussion titled “Prevent Victory for the Underdogs”, he opened by emphasizing that the current model of video game production is flawed. For instance, it’s been seven to eight years since Rockstar released their last two games, Ken Levine has been developing narrative building blocks since 2013, and Naughty Dog may not launch a new game during this console generation. The trend seems to be that games are becoming larger and more time-consuming to produce. However, in contrast, Nelson Jr.’s company, Strange Scaffold, has published nine games since 2021, with three more scheduled for release in 2025, all adhering to the motto, “Improve, Speed Up, Save Costs, and Prioritize Health.

Nelson Jr. shared with me during our Google Meet chat a few weeks back that “improved, quicker, less costly, and beneficial” encapsulates for him the concept of us challenging traditional beliefs about gaming. He explained that the conventional approach to evaluating the quality, standard, and effort in a game is that more money and time invested equates to a better product. However, over the past ten years, we’ve seen countless instances where this isn’t true, not just due to mismanagement or mishaps, but because the underlying assumption is unfounded.

Instead of simply pouring more funds and personnel into video production problems for Nelson Jr. and his regular collaboration team, it’s all about discovering accurate tools and efficient strategies to navigate obstacles effectively.

Nelson Jr. points out that limitations can actually foster creativity, especially in the gaming world. At Strange Scaffold, they don’t just aim to make games quicker, cheaper, and more healthy, but also seek ways to leverage these constraints to create stronger, more deliberate art. As demonstrated in “I Am Your Beast,” a game lacking funds for cutscenes resulted in an innovative kinetic typography system that has inspired other developers to explore alternative methods for storytelling. Instead of viewing a cut scene as just a 3D model moving around or even a motion comic, Nelson Jr. suggests it can be a dynamic canvas for various creative expressions and intentional representation, if approached in the right way. Working with limited resources encourages us to discover and seize these opportunities.

This type of development without rigid constraints offers chances for distinctive encounters, supported by the unstructured character of Strange Scaffold, which Nelson Jr. compares to a “drifting vessel of unruly artists rather than a traditional software development company.

Strange Scaffold prefers to regularly unveil new games instead of adhering strictly to the conventional game development approach where a successful game is continuously expanded until it no longer yields valuable content. This explains why Xalavier Nelson Jr., despite announcing El Paso, Elsewhere 2, emphasizes that this game isn’t imminent from their studio. He expresses enthusiasm about the opportunity to say something new and fresh even with the same material, and believes that working in the same code base makes a sequel more appropriate for a Strange Scaffold title.

Every other art form does this

Based on conversations with numerous developers, I’ve come to understand their reservations about this approach. As a game grows to a certain extent, traditional development practices may not be sustainable. It’s impractical for a team of 300 to work independently on various smaller projects while brainstorming ideas for Call of Duty Modern Warfare 4 over several years. However, Xalavier isn’t suggesting that Activision should blindly copy the methods of his much smaller teams. Instead, he aims to question and challenge the inflexible mindset that might reject experimentation with novel development systems outright.

Over the past few years, Nelson Jr. has contributed to scriptwriting for popular licensed games such as Stranger Things VR and South Park: Snow Day! He has now been recruited by Gearbox Software to collaborate on Borderlands 4, a highly anticipated game of the year. This new opportunity appears to have solidified his convictions, as he expresses, “It’s amazing how working across various scales and developing games today has proven me wrong time and again. I was constantly told throughout my career that the work I did and was doing wouldn’t be possible, effective, or scalable. Yet, at every step of my journey, it turns out that creating a game with an emphasis on quality, budget, and timeline is something that comes naturally.

Nelson Jr elucidates that the games industry is unique in setting limitations beforehand, but he found it less challenging to transition into Triple-A game development due to the similarities between artistic processes across different art forms. He had served as a lead writer in Triple-A and worked on projects like Borderlands and Stranger Things. Interestingly, he discovered that although scale and the number of people involved may vary, the essential principles of preserving quality, managing budgets, and adhering to deadlines are universal artistic processes. He was amazed by how effortlessly these concepts scaled up, and it turned out that there was often more similarity than difference, largely due to cultural assumptions about what is feasible or not.

The Great Plateau

At present, the conventional video game industry appears to have reached a leveling-off point. For instance, Xbox’s Game Pass subscriber growth has stagnated, leading Xbox games to become available on multiple platforms. The price of video games has risen from $60 to $70 due to increased production costs, yet fewer individuals are purchasing them. Instead of lowering the cost of consoles to attract more customers, companies are opting to maximize their profits from existing gamers by increasing console prices, rather than expanding the market.

In the world of gaming, we didn’t just stumble upon success; for a long time, strategies aimed at steady progress were often overlooked in favor of chasing the next major breakthrough. Loss-leading products and significant flops have been easily dismissed as the stage was set for the next big investment opportunity. However, currently, there seems to be no such next big thing on the horizon, and Xalavier fears that relying on the assumption that a few successful ventures will lift all boats may be overly optimistic.

He went on to elaborate, stating, “Currently, I find Switch 2 captivating as it signifies a significant milestone for the gaming industry. Many people have been anticipating Switch 2’s arrival, hoping it would be the boost needed for games. Upon examining the trend of game development, production, and marketing over time, you’ll see that there are unexpected successes – these are the ‘outliers’. There are also moderate hits that eventually fade away, while many promising projects remain unseen – the ‘invisible failures’.

Despite the industry’s largely unsustainable nature, it hasn’t completely crumbled due to constant infusions of money and chances to explore new areas. For a while, it was Game Pass that provided a lifeline. Then, it was VR. The industry has always managed to ride the next wave because, in truth, our methods and practices have not been sustainable or focused on the welfare of game developers or players.

It’s true, let’s consider the evolution of the video game industry over time. Consistently, there has been a steady financial influx from investors captivated by novel concepts, helping to sustain development. From 16-bit graphics to 3D, HD, motion controls, multiplayer, TV-like games, battle royales, and battle passes, the industry has seen countless innovations. Even if the trend didn’t last or wasn’t universally popular, integrating NFTs or Web3.0 technology proved effective in attracting investors’ funding for a while.

In Nelson Jr.’s opinion, there’s a strong urge in the gaming industry and among investors to discover something that can prevent or lessen failures or risks. This era is both exhilarating and challenging for players as they experience the benefits such as updates on games bought years ago, yet also face issues like micro-transactions being pricier than entire games and constant competition among new releases in an ongoing context. Today, an indie game developer isn’t just competing against other independent creators but against established games that continue to evolve with fresh content for a decade. The industry needs adjustment, according to Nelson Jr.

“Switch 2 will not save you”

Given the market is more congested than before with longer-lasting games than ever, some analysts propose that the release of Switch 2, Grand Theft Auto 6, or high-priced games could offer the industry the necessary momentum to continue thriving. However, Nelson Jr. expresses skepticism about this notion.

It appears that Switch 2, being the next release from Nintendo which often goes against industry trends, has been seen as another moneymaker for those who invest in it. I find Switch 2 quite intriguing, and I can’t wait to try it out myself as a player. However, it’s important to note that the business environment into which Switch 2 is being launched is clearly one where both Switch 1 and Switch 2 will exist side by side. If you’re already feeling the strain of financial unsustainability… especially in an era of tariffs when people will have to carefully select which games they play due to increased import costs, Switch 2 won’t necessarily alleviate your concerns.

It seems likely that the gaming industry will face tough times over the coming years, as many investors and developers search for a solution to the current unsustainable state of affairs in games. However, neither Switch 2 nor the next generation PlayStation nor Xbox will be the saviors they are hoping for.

We’ve made 15

If conditions remain challenging or even worsen for game developers, what strategies might help you thrive? One approach could be dedicating many years to a single game, crossing your fingers that it will capture the attention of algorithms, rise to the top on Steam, gain traction on Twitch, and become the next breakout hit. However, Xalavier Nelson Jr. suggests avoiding this elusive “fool’s gold.” Instead, consider focusing on creating a diverse portfolio of games, building strong relationships within the industry, and consistently refining your skills to increase your chances of success in the competitive world of game development.

Strange Scaffold is persistently working on creating intriguing projects, both within and beyond the studio. The goal isn’t to be like Balatro, but with the time it typically takes a developer to create one game, we’ve managed to produce 15 over a period of five years. This year, three new games will be released from our team.

As a gamer, I’d put it like this: “Knowing that, even if my gaming journey has to come to an end someday, I’ve left behind a wealth of over 200 games that bear my mark, gives me solace during difficult times. It makes me feel that I’ve given something back to the gaming community, something they can continue to enjoy for years to come.

In a realm where it takes nearly seven years to craft a game, pour hundreds of millions into its creation, only for it to vanish from the digital landscape barely two weeks post-launch, erasing countless hours of dedicated work, it feels downright peculiar to opt out of creating something like Strange Scaffold.

In this era, Nelson Jr. emphasizes the importance of sustainability for Strange Scaffold. Rather than battling against GTA 6, he explains that their goal is to occupy a distinct niche in people’s lives. Essentially, Strange Scaffold creates products that fit into various aspects of life. By catering to different needs, they foster unique interactions with players, which allows them to thrive. This approach has proven successful and continues to do so, ensuring their survival even if they don’t reach complete success. This is a remarkable finding in today’s competitive landscape as it suggests an unusual pathway to success that minimizes the risk of failure.

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2025-04-28 17:58