The industry is fundamentally different from five years ago. Yes it is! For some of you this will not be new “news” as such, but for others, you may find this useful….

It has ultimately moved from growth at all costs to commercial efficiency and studios are now operating in a market where:

• AAA development budgets regularly exceed $200M.
• Consumers are spending more time in fewer games and ecosystems.
• Live-service titles have begun to dominate player attention.
• Publishers have become far more selective about greenlighting new IP. Whether that is new games IP as a whole or integrations of third party IP.

Recent GDC reports among others consistently describe an industry focused on execution, efficiency and measurable return on investment rather than rapid expansion.

Developers are looking for ways to increase lifetime player value instead of relying solely on unit sales.

So what does this mean for Licensing as a whole? We would say it is increasingly viewed as a commercial multiplier rather than simply a marketing exercise. Although synergies across the two are worth exploiting should the opportunity arise.

A successful partnership amongst other things can:

• attract new audiences;
• improve player retention;
• generate incremental revenue;
• create press coverage;
• and strengthen a game's long-term brand value.

When we look at market dynamics as a whole, inbound licensing has pretty much become one of the fastest growing commercial strategies.

Five years ago, licensed content was largely limited to blockbuster titles such as within Fortnite or Call of Duty to name just two well-known franchises.

Today, publishers across mobile, PC and console are actively looking at external IP as a way to differentiate their games.

Inbound licensing now generally falls into four categories:

Brand Collaborations

Fashion, automotive, sport and entertainment brands appearing as skins, cosmetics or events. These partnerships primarily drive engagement and social reach.

Entertainment IP

Films, television, anime, comics and toy brands being integrated into games through characters, events and limited-time experiences. Publishers increasingly see games as part of wider entertainment ecosystems rather than isolated products.

Creator & Community Licensing

Influencers, esports teams and creator brands are becoming commercially valuable intellectual property in their own right. The community is often as important as the content.

Permanent Franchise Expansion

Rather than one-off promotions, publishers increasingly seek multi-year licensing programmes that continually refresh live-service games. The objective is no longer to launch a collaboration it is to keep players returning every month.

The opportunity is moving beyond Fortnite (although it remains notable)…

Fortnite demonstrated that licensed content can become a core business model rather than occasional downloadable content.

Now almost every publisher wants some version of that strategy.

Across the industry there is growing interest in:

• premium entertainment IP;
• anime;
• sports;
• automotive brands;
• fashion labels;
• music artists;
• consumer products;
• tabletop games;
• museums and cultural institutions;
• educational brands.

The conversation has shifted from "Should we license?" to "Which IP best fits our player community?"

Publishers increasingly prioritise authenticity over sheer scale. A smaller, highly engaged fan community can often outperform a globally recognised brand if there is strong audience overlap. This also makes alternative IPs potentially valuable to exploit and this is where Layer is seeing evolving success complementing existing licensing strategies by dovetailing new ideas.

What licensors should understand…

Game publishers rarely begin by asking:

"What famous brand can we add?"

Instead they ask:

• Will this improve player retention?
• Will our community genuinely care?
• Does it fit the game world?
• Can it generate repeat engagement?
• Does it create monetisation opportunities without damaging player trust?

The strongest licensing opportunities and associated proposals therefore often combine commercial value with genuine gameplay relevance.

Looking ahead

The next wave of licensing is likely to move beyond cosmetic collaborations.

Publishers are increasingly exploring:

• narrative integrations;
• playable licensed characters;
• AI-driven branded experiences;
• persistent virtual destinations;
• co-created game modes;
• franchise ecosystems extending across games, streaming, consumer products and live experiences.

As development costs continue to rise, licensing is becoming less about adding content and more about reducing commercial risk while increasing lifetime franchise value.

For rights holders, this creates a significant opportunity.

Games are no longer simply another licensing category. They are one of, if not the, primary platform through which audiences discover, engage with and spend money on entertainment brands.

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Licensing has moved on from “nice to have” to a core element of audience management and growth strategy.

The games industry has entered a new commercial phase.

After several years of restructuring, layoffs and tighter investment, publishers are placing far greater emphasis on extending the lifetime value of existing games rather than relying on new releases alone.

Recent GDC discussions and wider industry commentary point to a common theme: sustainable growth will come from stronger communities, recurring engagement and diversified revenue streams rather than simply selling more downloads of the core game.

This is creating a significant opportunities for inbound licensing.

Where licensed content was once reserved for blockbuster titles, publishers across PC, console and mobile are now actively exploring external IP to drive player acquisition, improve retention and create regular moments that keep communities engaged.

The focus has also shifted from one-off promotional tie-ins to long-term partnerships that become part of a game's live-service roadmap.

Successful collaborations increasingly include themed events, playable characters, cosmetics, narrative content and seasonal updates designed to encourage players to return throughout the year.

The key question publishers are asking has changed. Instead of "Which famous brand can we licence?", the conversation is now "Which IP naturally fits our community and supports long-term engagement?"

Elements may feel a little repetitive but these points are worth repeating.

What else to Watch…

Away from the obvious (as such), the licensing ecosystem within the games industry continues to broaden.

While entertainment crossovers remain highly visible, the market is expanding well beyond film and television.

Recent examples illustrate the diversity of opportunities now emerging:

• Competitive gaming platform Global Gaming League has recently secured licensing agreements with publishers including Activision Blizzard, Bandai Namco, Capcom, Electronic Arts, Ubisoft and Tetris to use their games within organised competitive formats demonstrating that publishers increasingly see outbound licensing as a route to audience expansion as well as direct revenue.
• More publishers are exploring multi-year collaboration programmes rather than limited time promotional events, creating opportunities for brands, consumer products, automotive, fashion, sports and entertainment properties to become recurring content within live-service games.
• Video game IP is simultaneously flowing in the opposite direction, with publishers investing heavily in film, television, publishing and consumer products to maximise franchise value and build wider entertainment ecosystems.

Expect future announcements to focus less on individual collaborations and more on strategic, long-term partnerships where licensed content becomes part of an ongoing content calendar.

But Who is Looking?

Although few publishers publicly announce that they are "looking for licences", several clear indicators suggest inbound licensing is once again becoming a growing strategic priority.

Live-service publishers

Studios operating persistent online games continue to seek new IP that can refresh player engagement through seasonal content, limited-time events and cosmetic collections.

Platform owners

Microsoft, through Xbox  continue to emphasise helping developers reach broader audiences and build sustainable businesses, reflecting an increasing focus on ecosystem partnerships rather than simply platform exclusivity.

Business development teams

One of the strongest themes emerging from GDC conversations is the growing importance of commercial partnerships. Senior business development leaders report that publishers are actively looking for partners who can contribute to growth, distribution and audience development, not simply transactional relationships. Licensors be aware, that anything notable you can bring to the table will be rewarded.

Independent developers

Many independent studios are also becoming more receptive to licensed IP. As development costs rise and discoverability becomes increasingly difficult, attaching a recognised brand can reduce marketing risk and accelerate community building. This is an area where the Layer marketplace and AT New Media’s support services are becoming more sought after.

The companies most likely to pursue inbound licensing over the next 12 months are likely to include:

• Live-service publishers seeking fresh seasonal content.
• Mobile publishers looking to improve player retention through branded events.
• Mid-sized publishers seeking recognisable IP to reduce launch risk.
• Developers building multiplayer and community-driven games where licensed content can support recurring engagement.

In conclusion, the industry's commercial mindset has evolved again.

Licensing is no longer viewed as an ancillary revenue opportunity but as a strategic tool that supports acquisition, engagement, monetisation and long-term franchise development.

For rights holders, the most attractive partners are increasingly those that can deliver authentic, community-first experiences rather than one-off promotional activations.

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