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The landscape of the gaming industry has undergone significant transformation over the past decade, leading to the emergence of a crucial segment known as external development, previously referred to as outsourcing.
At the forefront of this sector is Keywords Studios, boasting a workforce of 13,000 game developers across multiple studios worldwide. Since Bertran Bodson assumed the role of CEO in 2021, following Andrew Day, he has navigated the challenges brought on by the pandemic, which resulted in industry-wide downturns and layoffs. During Bodson’s tenure at Keywords, the industry has yet to experience a standard operational year.
Bodson believes that external development companies like Keywords have provided a stabilizing force for game developers. This model allows smaller studios, often with fewer than 50 employees, to scale their workforce as needed, either increasing or decreasing staff depending on project demands. In many cases, Keywords can transition workers from one project to another, which mitigates the necessity for layoffs during downturns, signifying a fundamental change in the industry that may ease operational hardships.
In a recent conversation, Bodson provided insights into the gaming industry as it heads toward 2025. He highlighted a noticeable shift towards prioritizing quality and forming long-term partnerships. A case in point is Keywords’ engagement with Fortnite, where they manage content contributions from six or seven different studios. Significantly, over 86% of the titles recognized in December’s Game Awards had ties to Keywords.
Regarding industry shifts, Bodson commented, “Changes won’t happen overnight and will occur at varying paces, but the importance is clear.” He expressed optimism, indicating that the gaming sector is beginning to see signs of recovery, although 2025 may still present difficulties, with real progress more likely visible in 2026.
Here is an overview of our discussion.
Current Workforce and Studio Structure
GamesBeat: What is the current status in terms of employee count and the number of studios?
Bertran Bodson: We currently employ around 13,000 people across 26 countries, with approximately 25 studios focused on creative development. Our organizational structure consists of three primary divisions: create, globalize, and engage. The create division, which oversees co-development, design, and art, comprises roughly 5,000 creative professionals spread across multiple studios in various regions. The globalize division matches that figure with another 5,000 employees, while engage, which encapsulates aspects like trailers, cinematics, and marketing, includes about 2,500 to 3,000 individuals.
Studio Count Clarification
GamesBeat: Are you still around 70 studios?
Bodson: While that figure had some validity in the past, we’ve streamlined our operations under the Keywords brand. Rather than operating as separate entities, we now present a unified front. Globalize, for instance, primarily focuses on efficiency in testing and localization, covering around 30 different languages through various locations worldwide. Engage operates fewer studios than the previously mentioned figure as structures have consolidated.
The Onboarding Experience
GamesBeat: What was your initial experience like upon joining in 2021?
Bodson: Joining such an inspiring company during a turbulent time was quite unique. Despite the challenges, I found a culture rich in entrepreneurship and collegiality. At the time, the company had about 9,000 employees, and we have since expanded considerably. However, it still has a close-knit atmosphere where interactions are common and communication flows quickly.
Adapting to Uncertain Times
GamesBeat: How have you navigated the uncertainties that have plagued the industry since you joined?
Bodson: The onset of the pandemic brought both challenges and opportunities. During my first days, I was conducting numerous COVID tests just to meet our teams globally. While the market has its difficulties, trends point toward optimism. Notably, interest in generating content is picking up, evidenced by strong intentions during recent industry meetings.
In past years, the industry landscape was fragmented, leaving companies with minimal support in game development. Now, many developers and publishers seek strong partnerships while maintaining smaller core teams. These collaborative efforts allow for flexibility and the ability to manage resources effectively when faced with unexpected challenges.
Shifts in Industry Structure
GamesBeat: How is structural transformation affecting the gaming industry? Is it a gradual change?
Bodson: Structural change is definitely underway, but it varies across the industry. The pandemic forced companies to rethink their business models and assess what is essential. Publishers are increasingly shifting from a fixed cost to a variable cost model, reframing their operations and investments. A significant move toward maintaining high-quality partnerships has also emerged, especially after various companies faced turmoil.
Building Trust
GamesBeat: What role does trust play in external development relationships? How do you ensure that sensitive project information remains secure?
Bodson: Trust is paramount. When integrating studios into projects, issues of security and information protection must be addressed directly. Our partnership with studios such as High Voltage Software and Hardsuit Labs exemplifies the reputation built over years, minimizing risks for our clients. We continuously invest in security measures and build robust systems to protect our projects and partnerships.
Flexible Workforce Management
GamesBeat: How does Keywords manage the balance between flexibility and team cohesion?
Bodson: The Globalize division operates efficiently because of our vast talent pool, allowing us to swiftly adjust to project requirements. We anticipate client needs while planning projects, enabling smoother transitions when cancellations occur. Our diverse studio system benefits from shared resources, promoting inter-studio collaboration during peak times.
Industry Trends and Innovations
GamesBeat: What trends are you observing in the industry?
Bodson: Several trends stand out. UGC is increasingly relevant, while mobile mini-games show promise. However, the most significant trend is the move by publishers to adapt operational structures, emphasizing variable costs and trusted partnerships. Despite prevalent concerns, there are also emerging players making significant impact in the industry.
Strategic Focus Areas
GamesBeat: What strategy has Keywords adopted in light of these observations?
Bodson: There are five strategic focus areas. First, enhancing client services by adapting our operational structure to better serve their needs. Secondly, optimizing our operational model for efficiency and scalability, particularly with the backing of investors like EQT. Third, exploring innovations in adjacent fields such as virtual production and animation, leveraging our creative talent. Fourth, pursuing growth through M&A selectively, focusing on quality and fit. Finally, positioning ourselves as a strategic partner for long-term success.
Exploring External Development Roles
GamesBeat: How do you see external development shaping career opportunities for newcomers to the industry?
Bodson: Our academies play a crucial role in talent development for the industry. They afford aspiring artists the opportunity to gain hands-on experience and often lead to full-time positions. Moreover, we attract professionals looking for varied experiences with multiple projects and challenges, further enhancing their careers. Notably, a significant number of award-winning games feature our contributions, highlighting the quality of work available within Keywords.
Given the complexities and demands of triple-A game development, it is vital to ensure job growth keeps pace with technological advancements. The challenge lies not just in growing revenues but also in safeguarding and enhancing employment opportunities.
Looking Ahead to 2025 and Beyond
Bodson: As we approach 2025, many industry players will find the year challenging, but I expect Keywords will help navigate these complexities and play a part in fostering growth. While 2026 may bring clearer pathways for recovery and expansion, we remain committed to shaping the industry positively.
Source
venturebeat.com