Game developer Farhan Noor, the curator of videogameslayoffs.com, has meticulously tracked job cuts since the beginning of 2023. His estimates reveal that approximately 10,500 employees in the gaming industry faced layoffs throughout the previous year.
As we embark on the new year, less than a month into 2024, reports suggest that around 3,000 planned job cuts have already been confirmed.
In an anonymous discussion with GamesIndustry.biz, seasoned industry leaders expressed concerns, cautioning that the gaming market is bracing for more challenging times.
The anticipated difficulties stem from persistently high-interest rates, an oversaturation of new game releases, and wary investors.
“If 2023 was the year of layoffs, 2024 will be the year of closures,” according to one CEO of a public company. “Not just developers, but publishers, media, service companies.
“There are just too many unprofitable businesses in video games,” they added. “We’re looking at up to two years of pain.”
One publisher boss said: “Too many games were green-lit in 2020 and 2021. We need to get to pre-pandemic levels in terms of the release schedule, and that’s probably going to take two years.
“You can already see publishers signing fewer games. That’s happening everywhere. The stores are saturated, not just Steam, and the games just aren’t delivering the levels they were. ”
“Studios grew too quickly during the pandemic, and people are spending less money on games during a cost of living crisis,” one respondent said. “The bubble is sadly bursting. I hope it creates new start-ups that revolutionize how we develop games and sets a precedent for larger studios to follow by.”
When questioned about their apprehensions regarding potential layoffs in the upcoming 12 months until October 2024, out of the 3,000+ respondents, 14% expressed strong concern, 16% indicated moderate concern, and 26% conveyed mild concern.
In addition to these responses, some participants chose to share anonymous feedback, offering insights into their perspectives on the increasing prevalence of layoffs within the industry.
