From this article in 2022, which references the US Bureau of Labor Statistics, "Arts, Entertainment, & Recreation" is one of the "lowest survival rates" for businesses in their first year, and is the #8 overall "Most Risky Industry to Start a New Business."
Now you can focus on how the article talks about new businesses, but it does give 5-year survival rates as well. And as folks familiar with the gaming industry know, even a well-established brand can only carry itself so far and isn't immune to failure.
What percent of Arts, Entertainment, and Recreation is Video Game Production?
And yes, you're correct. The fact you cite is "first-year". The point made was about AAA games.
That is not first year.
Further, this whole discussion is about Nintendo. I don't think AAA games or Nintendo are related to what's stated in that article in any way. Precise facts in context are necessary to support the original comment. They don't exist though because it's not accurate.
Not sure the breakdown of Arts & Entertainment into video games but it is part of that category so regardless it's still a top-10 risky business.
And yeah my whole second comment was meant to explain that the risk can be extrapolated even to well-developed brands, because we've seen well-developed brands fail. Being Nintendo doesn't mean they're immune to the high risk of the industry. AAA games are still risky and fail often, especially in 2025 where the market is incredibly saturated and people can afford to be more critical because there are more alternatives.
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u/BearMethod 1d ago
It is not one of the highest risk industries in the world.