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Relic’s Quest for Faster Game Development

▼ Summary

– Relic Entertainment gained fame with RTS games like Homeworld and Company of Heroes but faced challenges after THQ’s bankruptcy and Sega’s acquisition.
– The studio was sold by Sega in 2024 after industry layoffs and a rocky launch of Company of Heroes 3, leading to redundancies and private-equity ownership.
– Relic is now focusing on smaller-scope titles, faster development cycles, and self-publishing to ensure sustainability as an independent studio.
– CEO Justin Dowdeswell emphasizes controlling game scope, improving production efficiency, and using AI as a tool to enhance workflows without replacing people.
– The studio aims to balance its RTS expertise with modern player expectations while navigating a mature market by staying close to its fan base and avoiding unnecessary pivots.

Relic Entertainment is charting a new course for its future, focusing on faster game development cycles and a more sustainable business model after navigating significant industry shifts. The studio, known for classic real-time strategy titles like Homeworld and Company of Heroes, has embarked on an independent path following its separation from Sega. CEO Justin Dowdeswell is steering the company through this transition, emphasizing the need to release games more frequently without sacrificing the quality fans expect.

The journey to this point has been challenging. The studio faced immense pressure after the rocky launch of Company of Heroes 3 and the broader industry trend of layoffs and reduced contract work. This situation made it difficult to sustain the studio’s previous size, leading to difficult decisions and, ultimately, a parting of ways with Sega. Following the split, Relic underwent a wave of redundancies and secured a cash injection from private-equity firm Emona Capital, which now owns the developer.

Dowdeswell brings a unique perspective to this challenge, having worked at both large corporations like Electronic Arts and smaller indie studios. He joined Relic in 2013, just as Sega acquired the studio from the bankrupt THQ. He admits his initial, overly enthusiastic approach didn’t resonate with a team still reeling from the THQ collapse. Building trust required deliberate action—identifying problems, implementing solutions, and demonstrating tangible results over time.

For years, Relic’s business was heavily concentrated on premium PC real-time strategy games. Dowdeswell recognized the risk of having “all of its eggs in one basket” and sought to diversify into new genres, platforms, and business models. Ironically, the studio ended up returning to its roots by partnering with Microsoft to develop Age of Empires 4. While this project didn’t achieve the desired diversification, it was a critical and commercial success that reinforced the studio’s core strengths and built a strong partnership with Microsoft’s World’s Edge group.

Now operating independently, Relic is confronting the hard realities of self-sufficiency. The entire team has had to adapt, with employees wearing multiple hats and taking on broader responsibilities. A key advantage of this smaller structure is that everyone feels closer to the games being developed. The studio is also stepping into self-publishing, a daunting but exciting new frontier exemplified by the recent release of Warhammer 40,000: Dawn of War – Definitive Edition. This project not only pleased existing fans but also attracted a surprising number of new players, highlighting opportunities to expand their audience.

A central pillar of Relic’s new strategy is accelerating its development process. Dowdeswell identifies long development cycles as a significant weakness, leading to lost player connection and escalating costs. The goal is to get games to market more frequently. To achieve this, the studio is embracing rapid prototyping, giving small teams tight deadlines to explore new ideas using existing tools. Controlling scope is another major focus, making smarter choices about game systems to avoid unnecessary complexity that lengthens development, design, and testing.

Technological efficiency is also being prioritized. The studio is now committed to a more unified approach with its proprietary engine, ensuring that improvements made for one project carry over to the next. This represents a shift from past practices where technological gains were often siloed within specific franchises. This “additive process” with their technology is designed to provide a stronger foundation for future projects, enabling the team to build games faster.

On the topic of artificial intelligence, Dowdeswell sees it as a tool for augmentation rather than replacement. He believes AI’s power lies in handling tedious tasks, thereby allowing the team to accomplish more. He emphasizes that core creative decisions must still be made by people. The studio is in a learning phase, figuring out where AI can best serve its processes while being mindful of player perceptions and establishing clear boundaries for its use.

The current gaming landscape presents its own set of challenges. Dowdeswell notes that the economics of bloated AAA budgets are no longer sustainable, forcing studios to be more disciplined with scope and manage the delicate balance between price, value, and player expectations. He believes the key is staying close to the player community, a area where the studio, with its 28-year history, is still adapting to modern, direct engagement methods.

Despite a less predictable market, Dowdeswell sees a path forward through specialization. He argues that success now comes from being an expert in a specific area rather than chasing every trend. For Relic, this means focusing on its strategic gaming heritage while solving the complex problems of faster development, distributed teamwork, and the thoughtful integration of new technologies. By honing its expertise and passion, Relic aims to carve out a sustainable future, creating games that resonate deeply with a dedicated audience.

(Source: Games Industry)

Topics

studio history 95% rts games 93% business transitions 90% leadership challenges 88% game development 87% market changes 85% studio restructuring 83% player expectations 82% development efficiency 80% technology improvements 78%