The video game industry is projected to see record profits in 2024, while layoffs have nearly doubled compared to the previous year. This is sadly not some sudden revelation, but an issue that has plagued the industry since 2022.
Raj Patel, who works as a director of marketing and communications, laid out these bleak statistics In a thread posted to Bluesky. Over the last 3 years, the games industry has seen roughly 370 announcements of layoffs, amounting to over 33,000 people losing their jobs.
There are several factors that have no doubt led to this tumultuous time in the games industry; but frankly none of them have anything to do with the individuals who have lost their jobs. Short-sighted and excessive hiring during the pandemic has led to bloated studios unable to support their own weight. Ballooning budgets and development timeframes have made AAA games even more risk-averse, with a reliance on remasters, prequels and sequels of known IPs becoming the standard instead of new ideas. The need for every game to be an immediate success, or face being sunsetted before they even have a chance to build a fanbase. We saw this only yesterday, with Ubisoft announcing that they will be shutting down their game XDefiant in June 2025.
This is all along with the high burnout rate that game developers often face, as well as many countries having very little in place to create a level of job security. There is also the growing interest in the use of AI in game development, that many suspect will have a detrimental effect on both the number of jobs in the industry, and the quality of the games being made. Thankfully, there is a growing trend within the industry of unionisation, with many studios, publishers, and disciplines banding together in an attempt to combat some of these issues.
This current dilemma is not just limited to a few studios. The likes of Microsoft, Amazon, Sony, EA, and Tencent having over 10,000 layoffs between them since 2021. No developer or publisher is safe from the current situation, whether they are an Indie studio or a tech giant.
Sadly, not everyone is sticking around in an industry that currently seems happy to use their skills and then drop them at the first sign of a financial dip (after all, the line must always go up). Many experienced people are leaving the games industry for more secure or better paying work, taking their experience with them. There are fewer and fewer veterans now to help teach and guide junior and entry-level developers, creating a skill vacuum. One person responded to Raj’s thread, pointing out this also impacts the number of people looking to enter the industry.
An important note is that the numbers shown are from the announcements where the amount of layoffs are quantified. Given the number of people who work freelance in the games industry (a growing percentage), I’m certain that there are more layoffs than recorded.
These are some of the darkest days the video games industry has faced. Despite the fact that companies are enjoying increased revenue YoY, they are decaying from the inside out. There doesn’t seem to be an easy solution to what is happening, and it is likely to continue into 2025.
What I will say is this: We must not lose sight of the fact that these are people making the video games we love. While video games have become the most profitable and universal entertainment medium, it still all comes down to the hard work, creativity and passion of those developers.
Support the games and studios you love; they need it now more than ever.
