Video Game Industry Layoffs Are Worse Than Ever
It’s a tumultuous time for the video game industry as layoffs continue to plague game developers and publishers. The recent layoffs at Sony and Electronic Arts (EA) are just a few examples of the widespread convulsion of job cuts that have been occurring throughout the industry.
Sony’s announcement of laying off 900 people across its worldwide games business, affecting studios like Naughty Dog and Insomniac Games, sent shockwaves through the industry. Similarly, EA’s decision to lay off 670 employees, citing a shift away from the development of future licensed intellectual property, added to the growing concerns about job security in the industry.
These layoffs are part of a larger trend that began in 2023, with many major developers and publishers making significant staff reductions. Companies such as Epic Games, Embracer Group, Microsoft, Take-Two Interactive, Amazon, Bungie, CD Projekt Red, Ubisoft, Riot Games, and Unity have all been affected by layoffs.
The impact of these job cuts has been substantial, with at least 8,100 people laid off in the first two months of 2024 alone. This year is shaping up to be even worse than 2023, which saw a record number of layoffs. According to estimates, 11,250 people lost their jobs in the games industry in 2023, highlighting the severity of the situation.
The Game Developers Conference’s annual State of the Game Industry Survey revealed the widespread concern about job security in the industry. A third of the 3,000 respondents reported being impacted by layoffs, either through personal job loss, witnessing layoffs of colleagues, or working at companies where layoffs occurred. Additionally, half of the respondents expressed varying levels of concern about future staff cuts, indicating the pervasive unease among industry professionals.
These developments come at a time when the industry has been experiencing critical and commercial success with titles like Marvel’s Spider-Man 2 and The Last of Us Part II Remastered. Despite these achievements, the specter of layoffs looms large, casting a shadow over the future of the video game industry.
