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NCSoft president: "The games industry's evolution towards acceptance and diversity is ongoing"
(www.gamesindustry.biz)
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I feel the problem is not the industry but the fanbase. As of the last few years, it's become pretty common to see videogames become target of hatred for "going woke": H:FW's Aloy's "peach fuzz", TLOU2's Abby being too masculine, women not living to the average beauty standard, LGBT characters "shoved down people's throats", character editors decoupling gender and sex or using gender-neutral language, narrative being cringe because it targets millennials (as if older games didn't target young audiences, too)... The industry is going forward, but I don't think the fanbase is ready yet.
Sometimes I think the fanbase is regressing, even. I've seen people lamenting increased "politics" in their videogame, yet saying that MGS or FFVII or Bioshock are their favourite games. Gamers don't even pay attention to what they consume, they merely parrot whatever their favourite influencer says. "Woke" is a meaningless term that gets thrown around whenever they don't like something.
Sure, it is largely the fanbase, however I also think that the game industry seems to sometimes do somewhat of a "woke-washing", meaning opically supporting the LGBTQIA movement because of financial, shitstorm-prevention or other reasons than just wanting to create more diverse and inclusive games.
For instance I like Hogwarts Legacy, but it also takes place in the Victorian era, and it seems to project the modern tolerant society ideals onto the wizarding world of that time.
Depicting the society as inclusive and diverse is somewhat history revisionist. If you play as a non-binary or trans person at that time, then you should have to deal with prejudice and marginalization, otherwise it is just "woke-wash" the history.
So, IMO there are some cases, especially in historic (fantasy) games, where injecting modern ideals and standards might not fit or needs to be better addressed, than just let it be cosmetic.
They shouldn't do a halfhearted job.