--- title: "Economists Prove: Forced DEI Consulting Lowers Video Game Sales" description: "Economists Haomiao Wang and Bohui Zhang, in a study based on Steam data and the Difference-in-Differences method, showed that the forced implementation of DEI principles by external consultants leads to a significant drop in video game sales." date: 2026-11-04T01:08:07.486Z lang: en url: https://xab.info/en/posts/dei-consulting-lowers-video-game-sales tags: [dei, video-games, economics, steam, sweet-baby-inc, esg, game-industry] author: "Alexander Buran" publisher: "XAB.info" --- # Economists Prove: Forced DEI Consulting Lowers Video Game Sales ![Close-up of a video game character in futuristic gear with an emphasis on character design and suit details.](https://xab.info/media/2026/11/04/dei-konsalting-snizhaet-prodazhi-vidio-igr/dei-konsalting-snizhaet-prodazhi-vidio-igr-1.webp) ## Key Points - Economists Haomiao Wang and Bohui Zhang applied the Difference-in-Differences method to Steam data and recorded a sales decline in games touched by external DEI consulting. - The central case study is the Canadian company Sweet Baby Inc., founded in 2018, which integrates DEI principles into gaming projects. - The authors link the findings to the "dark side" of ESG initiatives that turn into tools of moral and financial coercion. ### Research Methodology and Sample Economists Haomiao Ван (Haomiao Wang) and Bohui Zhang have published a paper titled "DEI Pests: Evidence from the Global Video Game Industry," which uses quantitative data to assess the economic consequences of implementing Diversity, Equity, and Inclusion (DEI) principles in gaming projects. The authors applied the Difference-in-Differences method using data from the Steam platform, allowing them to compare sales dynamics of games affected by DEI intervention with a control group of similar projects that did not experience such influence. This approach ensures control over temporal trends and isolates the effect of external intervention from general market fluctuations. ### The Sweet Baby Inc. Case and the External Pressure Model The central object of analysis in the paper is the Canadian consulting firm Sweet Baby Inc., founded in 2018. According to the researchers, such organizations act as external actors that are not part of the creative development process, but exert significant influence on character design, narrative decisions, and the visual language of games. It is this model of "forced" external implementation of the DEI agenda, rather than organic internal studio development, that the authors view as a key factor generating negative economic effects. ### Economic Effect: Sales Decline The main conclusion of the study is that games affected by DEI intervention exhibit a statistically significant decrease in sales compared to other projects not subjected to similar external influence. The Difference-in-Differences method allows the authors to argue that the effect is not reducible to random market fluctuations, but is a persistent consumer demand reaction to changes in the product. The paper highlights two key mechanisms through which the primary harm of the aggressive DEI agenda is realized, although specific detailing of the impact channels remains limited in the available source summary. ### The "Dark Side" of ESG Initiatives The researchers interpret the findings within the broader context of corporate social responsibility. In their assessment, the described practices demonstrate the "dark side" of ESG (Environmental, Social, and Governance) initiatives. When external pressure turns into an instrument of moral and financial coercion, it directly damages the commercial success and creative freedom of developers. Thus, the work fits into a growing body of academic literature critically evaluating the consequences of mandatory and semi-mandatory ESG standards for companies' operational efficiency. ### Implications for the Industry and Further Discussions The publication emphasizes that the question of DEI consulting's impact on the gaming market is ceasing to be purely ideological and is receiving quantitative econometric evaluation. For publishers and studios, this means that decisions to involve external DEI consultants may now be accompanied by measurable financial risk. At the same time, the work relies on data from a single platform (Steam) and a single type of intervention, which limits the generalizability of the findings to other distribution channels and forms of social impact. Nevertheless, as the first systematic econometric analysis of this phenomenon, the study sets a framework for further discussions at the intersection of economics, corporate governance, and the gaming industry. ## Fact-Check & Sources - [Китайцы выдали базу: наличие мерзкой DEI-повестки гробит игры](https://www.goha.ru/kitajcy-vydali-bazu-nalichie-merzkoj-dei-povestki-grobit-igry-xzBYLe) - The source retells the conclusions of the econometric study by Wang and Zhang. The method (DiD), data platform (Steam), case company (Sweet Baby Inc., 2018), and main conclusion regarding sales decline are confirmed. The specific two mechanisms of harm are not detailed in the source text. ## FAQ ### What method did the researchers use? The authors applied the Difference-in-Differences method on Steam platform data, which allowed them to compare sales of DEI-affected games with a control group and isolate the external intervention effect. ### What is Sweet Baby Inc. and why does it feature in the work? Sweet Baby Inc. is a Canadian consulting company founded in 2018 that implements DEI principles into video games. In the study, it serves as the central case of an external actor exerting pressure on developers. ### What is the main conclusion of the study? The forced implementation of the DEI agenda by external consultants leads to a statistically significant decrease in sales of affected games compared to similar projects that did not undergo such influence. ### Is the work limited to a single platform? Yes, the quantitative analysis relies on Steam data. The authors and source indicate that this limits the generalizability of the findings to other distribution channels.