Layoffs Continue to Plague the Video Game Industry in 2024
The video game industry has been hit hard by a wave of layoffs in recent months, with studios of all sizes being affected. This trend has only escalated in 2024, with an estimated 6,000 people losing their jobs in just the first month of the year. The layoffs are casting a shadow over the industry, overshadowing the exciting game debuts set for 2024.
Thousands of Jobs Lost and the Industry’s Leading Companies Grow
In January alone, several prominent studios and companies announced significant layoffs. Riot Games laid off 530 employees, while Devolver Digital cut 28 jobs at Artificer, a recently acquired team. Dead by Daylight studio Behaviour Interactive and Sega of America also suffered losses, with 45 and 61 employees respectively being let go. Microsoft, now a $3 trillion company, laid off nearly 2,000 employees across Activision Blizzard, ZeniMax, and Xbox.
Even Unity, a prominent game development platform, plans to drop 1,800 employees by March. This comes on top of the 1,000 jobs the studio eliminated in 2023. Embracer Group, another major player in the industry, laid off 97 people at Eidos Montreal, canceling a new Deus Ex game in the process.
Layoffs Cast a Shadow Over Game Hype
The wave of layoffs has created a sense of instability within the video game industry. Despite the financial growth of leading companies, including Microsoft and Sega, job cuts are still happening. This raises concerns about the ethics of the industry and the impact on the mental health and job stability of developers.
The layoffs crisis in the industry has only become more concerning in the first weeks of 2024. The industry experienced a period of unchecked growth and corporate consolidation during the pandemic in 2020 and 2021. Unfortunately, the layoffs are now a response to that growth period.
Unionization Offers Protection for Game Developers
In the midst of the layoffs crisis, there is hope in the form of unionization efforts within the video game industry. Unionization has been on the rise since 2021, and it’s becoming increasingly clear how collective bargaining can help protect the rights and jobs of game developers.
At Sega of America, the AEGIS-CWA union negotiated to save some roles and offer severance to temporary workers. They have more than doubled the number of saved jobs through their union efforts. Unionization is gaining appeal as game developers aim to protect themselves against the firing squads in the industry.
Hideo Kojima’s Partnership with Sony and Xbox’s Multiplatform Plans
In other news, renowned game developer Hideo Kojima is partnering with Sony to create a new game that blurs the boundaries between film and games, leveraging Sony’s connections in the movie and music industry. Additionally, Xbox is rumored to be releasing some of their exclusive titles on PlayStation and Nintendo platforms. These developments offer a glimpse into the potential future of cross-platform gaming and collaboration between major players in the industry.
Analyst comment
Negative news. The wave of layoffs in the video game industry is causing instability and raising concerns about job stability and mental health. However, the rise of unionization efforts offers hope for protection and collective bargaining for game developers. Hideo Kojima’s partnership with Sony and Xbox’s multiplatform plans indicate potential future collaboration between major players in the industry.
