2023 proved to be a turbulent year for the video game industry. Microsoft made headlines with the acquisition of Activision Blizzard King for a whopping $69 billion, marking the largest gaming acquisition in history. Actors also went on strike due to concerns over artificial intelligence usage, and more than 10,000 game developers found themselves unemployed.
As we reach the midpoint of 2024, the industry continues to face significant job losses, surpassing last year’s numbers with over 11,000 layoffs already reported, according to a recent report from Variety.
“What was once a period of remarkable growth has now turned into a noticeable dry spell,” remarked Scripps News producer Matt Picht, who hosts the documentary series “Next Level” exploring the impact of video games on society.
Picht highlighted how, despite industry growth, game prices have struggled to keep up with inflation or meet the expectations of new investors. This has led to challenges for many companies in the market.
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Newzoo analysts noted that the cyclical nature of job losses in the industry has been exacerbated by unique circumstances. Factors such as decreased home gaming during the pandemic, post-launch team downsizing, and industry-wide downsizing have all contributed to the current situation.
The industry anticipates more game cancellations and a shift in game quality going forward. Picht also acknowledged the challenges faced by companies in producing expensive “Triple A” titles and getting a return on investment.
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Notable companies experiencing layoffs include Activision Blizzard, Xbox, Playstation, EA, Riot Games, Twitch, and most recently, Take-Two Interactive working on the next “Grand Theft Auto” installment.
Picht expressed concern over the increasing churn in the industry, leading to studio closures, developer layoffs, and challenges in bringing immersive gaming experiences to market.
