During a conversation at Gamescom Asia (via GamesIndustry.biz) with Raw Fury co-founder and chief publishing officer Gordon Van Dyke, Layden talked about the disappearance of AA studios and the negative impact it's had on the industry.

THE gaming industry has struggled recently with waves of layoffs washing through the industry. In the last twelve months, Xbox has laid off over 2.5k employees, and this is far from the only

The executive said the console power chase has hit a “ceiling” and called for companies to compete on content rather than specs. “It’s time for a real hard reset on the business model, a hard reset on what it is to be a video game,” he told VGC.

Shawn Layden, former PlayStation executive, has spoken out against the current industry model on several occasions. Specifically, he believes that big productions and AAA games that cost millions of dollars are not the right path, as he thinks they will lead to a major crisis.

With more and more studios opting to make spin-offs, sequels and reboots of existing I.P. rather than explore new concepts and stories, former PlayStation executive Shawn Layden has declared there is a "collapse of creativity" in the games industry.

Speaking at Gamescom Asia, former PlayStation executive Shawn Layden offered a grim diagnosis for the state of the games industry: AA studios have disappeared, and rising development costs have left the industry in a creative death spiral (via GamesIndustry.biz ).

Former PlayStation boss Shawn Layden has said that the disappearance of lower budget, AA games is a death sentence.