Rampant Layoffs Plague Video Game Industry in 2024
The video game industry has always been known for its demanding production pipeline and intense work schedules. While this has resulted in some incredible games over the years, it has also taken a toll on the mental health and job stability of developers. Layoffs have unfortunately become a common occurrence in the industry, but recent months have seen a surge in job cuts across studios of all sizes.
In the first month of 2024 alone, an estimated 6,000 people in the video game industry lost their jobs. This number is steadily increasing and follows a wave of layoffs in 2023, where approximately 10,500 video game jobs were cut. To put this into perspective, 2022 saw around 8,500 layoffs, which was already considered a significant issue. The trend of layoffs shows no signs of slowing down, with 2024 on track to surpass the previous year’s numbers.
Some notable layoffs in January include Riot Games, which laid off 530 employees, accounting for about 11 percent of its workforce. Devolver Digital also let go of 28 people from Artificer, a team it had acquired in 2021. Dead by Daylight studio Behaviour Interactive lost 45 employees, while Sega of America fired 61 workers. Microsoft made headlines when it laid off nearly 2,000 employees across Activision Blizzard, ZeniMax, and Xbox, coinciding with the company reaching a valuation of $3 trillion. Unity plans to cut 1,800 jobs by March, adding to the 1,000 positions eliminated in 2023. Embracer Group also made significant cuts, laying off 97 people at Eidos Montreal and canceling a new Deus Ex game.
These layoffs have affected studios of all sizes, even as the industry’s leading companies continue to grow financially. The timing of these job cuts is particularly concerning, as they come amidst the hype surrounding upcoming game releases. It’s difficult to get excited about new titles when we know that people have lost their jobs during the production process. The industry’s growth and corporate consolidation during the pandemic have contributed to this instability.
However, amidst the layoffs, there is a glimmer of hope. Unionization efforts within the video game industry have been on the rise since 2021, and they are proving to be a valuable tool in protecting workers’ rights. While many people still lost their jobs at Sega of America, the studio’s AEGIS-CWA union was able to negotiate to save some roles and provide severance packages for temporary workers. The appeal of collective bargaining and the protection it offers is becoming increasingly clear as more layoffs occur.
Despite the challenging circumstances, there are still exciting developments in the video game industry. Renowned game designer Hideo Kojima is partnering with Sony to create a new game that blurs the boundaries between film and games. The project, codenamed PHYSINT., will leverage Sony’s connections in movies and music. Kojima Productions will begin working on this new IP after completing Death Stranding 2, which is set to release in 2025. Additionally, Xbox is rumored to be releasing some of its exclusive titles on PlayStation and Nintendo platforms, potentially expanding their reach.
In conclusion, the video game industry is currently facing a crisis of rampant layoffs. Despite the excitement surrounding upcoming game releases, it’s challenging to fully enjoy these developments when we know that people have lost their jobs during the production process. However, there is hope in the form of unionization efforts, which are proving to be effective in protecting workers’ rights. As the industry continues to evolve, it’s crucial to address the issue of job stability and mental health within the video game development community.