Approximately 10% of game developers lost their jobs in 2024. This is according to the results of the annual survey of the video game industry conducted at the Game Developers Conference. More than 3000 developers took part in the survey, and it covered a number of topics, including layoffs in the industry and what games developers are working on.
Massive layoffs have plagued the gaming industry over the past two years, making the question of their impact on developers one of the most important in the survey. In addition to the 10% of developers who have lost their jobs, a total of 41% of respondents said they have been affected by layoffs in some way, either by being laid off directly or by seeing colleagues or colleagues from other departments being laid off. The survey also notes that the number of people affected is potentially much higher due to students and graduates who reported difficulty finding employment in the industry in general.
When asked about the reason companies gave for layoffs, 22% said restructuring, and 18% said a decline in revenue. 19% did not give any reason for layoffs at all. However, developers have their own ideas about why layoffs continue.
In the analysis of answers to the question about what developers think is the reason for layoffs, most were general statements about the excessive expansion of the industry during the pandemic. Companies were acquiring employees and studios in the hope of meeting the level of demand for games that declined after coronavirus-related restrictions were eased. However, some developers believe that the reason for the layoffs is much simpler. Companies like Microsoft and Sony still reported revenue growth despite numerous rounds of layoffs and studio closures. It is therefore not surprising that 13% of respondents attributed the layoffs to corporate greed.
In addition to layoffs, the past few years have also seen the failure of a number of high-profile, high-budget live games. While there have been some successes in this area with new games like Marvel Rivals, it is generally difficult to launch a live game that can compete with giants like Fortnite, Roblox, and Call of Duty. 2024 was also the year that Balatro, Animal Well, and Astro Bot dominated the headlines and award lists, indicating a greater appetite for these smaller-scale single-player games. Interestingly, and perhaps disturbingly, the survey found that more than 30% of AAA developers are working on a live game.
When developers were asked about their opinions on live games, the survey said:
«One of the biggest problems mentioned was the oversaturation of the market, with many developers noting how difficult it is to break through and build a stable player base».
Source: The Verge
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