XDS 2025 Insights: how external development derisks gamedev in a risk-averse market

What are the key learnings you’ve taken away from XDS 2025?

“A growing sense of transparency and collaboration between developers and service providers was the main theme. One major takeaway was the shift in how developers view external development—not just a support function, but as a source of innovation. Many are opting to start small, engaging one or two experts before scaling up, in hopes for more targeted and agile partnerships.

Rates were a major talking point, with increasing pressure on vendors to offer competitive pricing without compromising quality. There’s also a clear move away from “one-size-fits-all” providers, with developers seeking partners with focused expertise rather than those claiming to do everything.

Another valuable insight was the call for more clarity in pitch and creds decks. Developers want to see real value and innovation, not just capabilities.”

Which other events have you attended this year and what have been your general observations?

“This year, I attended XDS, GDC, Develop, and Gamescom. Compared to previous years, both GDC and Develop felt noticeably quieter, particularly on the buyer side. With the recent upheaval across the industry, there’s been a visible increase in service providers ranging from new specialist start-ups to developers pivoting towards external services.

Many outsourcing teams mentioned that they had received hundreds of meeting requests at a single event, which made it challenging to prioritise time and often lead to them spending more time with existing partnerships than new opportunities. Despite the industry turbulence, there’s a growing sense of cautious optimism. The industry is showing signs of recovery, though risk aversion remains high, resulting in tighter budgets and a stronger reliance on external development.

The role of industry events has become more essential, not just for networking, but for navigating this “new normal” and fostering meaningful, long-term relationships.”

What are the benefits of external development for game developers?

“External development offers developers flexibility, expertise, and efficiency, which is especially valuable in an industry that’s seen widespread restructuring and downsizing. It allows studios to scale teams and services as needed, without increasing permanent headcount and helping to maintain stability throughout the development cycle.

Service providers bring deep experience and diverse skill sets, with decades of game development experience across different engines and genres, often acting as expert problem solvers who can integrate quickly into projects. For example, Tech Art specialists can jump in and support the specialised pain points that internal dev teams face.

External partners also build bespoke teams tailored to specific challenges, such as improving pipeline efficiency or tackling complex sections of a game. Because we operate in a competitive market, we invest in R&D to stay ahead developing tools like artist-friendly engine plug-ins, for example, that reduce rendering time which directly benefits developers.”

What are clients looking for in outsourcing partners?

“Clients are looking for partners who deliver real value, whether that’s specialist expertise they don’t have in-house, or a proactive team who can solve niche problems creatively and efficiently. They want collaborators who can scale flexibly across different areas, reducing the need to onboard multiple external vendors, which can be time-consuming and complex.

Long-term partnerships are the goal, and building them requires trust, transparency, and consistent communication. Clients value partners who take the time to understand their unique challenges and who can adapt quickly to evolving needs while maintaining a high standard of delivery.”

How does Atomhawk stand out in a crowded market?

“For us, our goal has always been to combine long-term client partnerships with a deep commitment to transparency, flexibility, and innovation.

Since 2009, Atomhawk has built a loyal client base through regular, honest communication and a collaborative approach to problem-solving. Each project is supported by a dedicated Producer and Art Lead, reducing the client’s workload and ensuring high-quality delivery. What sets Atomhawk apart is our behind-the-scenes excellence, and robust production tracking which enables accurate project forecasting—information that we openly share with clients.

Our team’s curiosity and drive for efficiency also fuels innovation. By exploring new technologies and refining pipelines, we consistently find ways to reduce production time and cost without compromising creativity or quality. The studio has grown into a talented team of artists and developers, expanded its service offerings, and fostered a culture of continuous learning. Many team members recently celebrated over a decade at the company!

This blend of experience, transparency, and forward-thinking makes Atomhawk a trusted and distinctive partner in the video games industry.”

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Thought Leadership at Atomhawk, brought to you by the Canopy initiative.