Former Nexon CEO Accuses Gaming Industry of Chasing “Fads”

Owen Mahoney, former CEO of South Korean publisher Nexon, has called out the global games industry’s leaders for following fads rather than building products players actually want. In a recent blog, Mahoney argues that the sector suffers from what he calls "mass delusions" which are cycles of empty hype where concepts like the metaverse, esports, and cloud gaming catch executive imaginations, then fall short in delivery. The result, he warns, is billions in capital loss and a trail of disrupted careers, as the business chases headlines instead of substance.

Dissecting the Gaming Industry’s Hype Cycle

Mahoney’s critique arrives at a moment when industry innovation is uneven, dominated by major investments in the “next big thing” without due diligence or testing. Referencing his 2015 experience, Mahoney noted the rarity of executive transparency when speaking out against popular trends, explaining that destructive mass hype can seriously harm not only companies but ordinary investors and developers as well. He traces the pattern through four stages: an enticing “glamour shot,” an emotional grand narrative, the "OK Boomer phase" of consultancy charts, and finally the expensive M&A rush that legitimizes hype, even when the core product is missing or half-baked.

Mahoney uses concrete examples to detail the damage caused by ill-considered hype. He points to the push for esports stadiums as a symptom: investors and sports owners bought into the grand vision without solid user demand. Instead of lasting communities, these moves created revenue for sellers but rarely long-term value for fans or developers. The same cycle played out with virtual reality and blockchain games, alluring narratives, investment frenzies, then inevitable letdowns.

He urges executives to mock failed fads, not for mean-spirited fun but as a useful discipline. “The malinvestments destroyed billions of dollars that belonged to pension funds, retirement accounts, and ordinary savers,” he writes. True leadership, according to Mahoney, means asking three questions as part of a “fad audit”: does a trend improve the user experience, is there genuinely new utility, and can decision-makers experience the product hands-on? “Your own senses are usually more reliable than the crowd’s opinion,” Mahoney suggests, warning that too often CEOs confuse buzz with substance and overlook what really makes a game sticky or meaningful for players.

Beyond fads, Mahoney laments the scale-driven nature of AAA development, where massive teams and budgets lead to risk aversion, stagnation, and unhappy workers. He champions more fun, smaller teams, and practical innovation, arguing that too much focus on “cinematic graphics” and top-heavy management saps the joy from development and dilutes creativity. Instead of “painting leaves on trees in Photoshop” for the sake of visuals, he believes studios should give more weight to designer-led product discussions and actual customer feedback.

The former Nexon CEO concludes that the current gaming hype cycle is potentially the largest and most consequential yet, as new technologies from AI to cloud are poised to reshape the entire sector. His warning: discern the real from the hollow, ground product strategy in user reality, and resist chasing fashion when building for both business and players.