It's more than healthy, and still growing. I still play Riot's Teamfight Tactics regularly, and I've never waited for more than a few seconds for a match. That's why it was so exciting to see New World appear last year, even though it's not very good. These games serve their communities well, but the broader genres are effectively in hibernation. They're both very much alive genres, of course, but players have coalesced around a few giants and mainstays, with hardly anything that's new or novel appearing. We saw MMOs and MOBAs go through this gold rush too, but not with this much speed. Then the genre skipped the part where it becomes established and stable, rushing instead towards stagnation and decline. The incredible pace of expansion suggested great things for autobattlers. In less than a year we'd gone from a single mod to a bunch of high profile games, each boasting millions of players and big tournaments touting meaty payouts.
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