What Might This Mean for the Future?
2024 was a challenging year for video game developers across AAA studios and indie companies. According to research conducted by GDC (Game Developers Conference) and as reported by Variety, the extent of the layoffs highlighted just how difficult the year was for the industry.
Layoff Numbers
In 2024, the gaming industry was hit especially hard by widespread layoffs. According to Variety, one in 10 video game developers reported being cut from their roles, whether at AAA studios or indie companies. The GDC highlighted these struggles in its 2025 State of the Game Industry report, which surveyed 3,000 developers. The report revealed that 11% of respondents had been laid off in the past year, with 41% of layoffs occurring in 2024 alone. These cuts impacted individual developers and entire teams, with team-wide layoffs increasing by 35% over the previous year. As layoffs continue, 58% of developers have expressed growing concerns about the future of the industry and what lies ahead.
Reasons Behind the Layoffs
After surveys were conducted, it was revealed that “the top reason companies have given their employees for layoffs is restructuring (a general term for reorganizing a business to make it more profitable), followed by declining revenue and market shifts. That’s for those who even got an explanation: 19% of developers told us there was ‘no reason given’ for any of their company’s layoffs.” The companies laying off developers included major industry players such as Microsoft (which has owned Activision Blizzard since 2023), Sony Interactive/PlayStation, Riot Games, Take-Two Interactive, EA, Epic Games, Ubisoft, and others.
The GDC report also highlighted how developers felt about the situation. “While many of them recognized that revenue and market shifts were part of the problem, they placed most of the blame on specific issues like Covid-era overexpansion, rising production costs, declining player interest, unrealistic expectations for the ‘next big hit,’ and poor leadership and mismanagement.” Another growing concern among developers is the impact of generative AI on the industry. While 13% noted its positive impact (which was originally 21% in 2023), 30% felt it had a negative impact, an increase of 12% from the previous year.
Call of Duty: Black Ops 6 – Global Launch Gameplay Trailer (2024) Official Call of Duty Trailer
You Might Also Be Interested In:
Source: Dead Talk Live
Contact Information:
Email: news@deadtalknews.com
Phone: +1 (646) 397-2874
Dead Talk Live is simultaneously streamed to: YouTube, Instagram, TikTok, Facebook, Twitch, Twitter, Vimeo, and LinkedIn
Shop official Dead Talk Live Merchandise at our Online Store
Source: Dead Talk Live
Contact Information:
Email: news@deadtalknews.com
Phone: +1 (650) 308-4023
Dead Talk Live is simultaneously streamed to YouTube, Instagram, Facebook, Twitch, and Twitter daily at 9:30 PM Eastern U.S. Time.
Shop official Dead Talk Live Merchandise at our Online Store
Author
Janaye is a graduate student at Rowan University, pursuing a degree in Writing Arts. She previously earned her bachelor's degree in the same field, specializing in creative writing and public publishing.
Elke Simmons' writing portfolio includes contributions to The Laredo Morning Times, Walt Disney World Eyes and Ears, Extinction Rebellion (XR) News/Blog, and Dead Talk News.