Year after year, we find ourselves reporting on staff reductions in the gaming industry. It’s something we have frequently pointed out as being somewhat anticipated due to a so-called “layoff season”, where companies seek to decrease employees in order to bolster the upcoming year’s figures. While this doesn’t make it justified, it does make it foreseeable. Last year felt distinct as the instances of layoffs we covered seemed to increase throughout the year, and again, some were predictable, resulting from mergers and similar activities.
Despite the apparent frequency, it is challenging to determine the exact impact on the industry until analyzed in statistics. That’s exactly what GCD did with their recent “State of the Game Industry” survey, and the results are now public domain. The comprehensive report can be accessed on their website for those wishing to delve into it. They have also highlighted some of the most notable figures for those seeking a synopsis.
The report’s standout finding is that 11% of survey respondents, game developers, were laid off in 2024. This represents a large number of individuals. Among them, 19% were involved in storytelling, implying that a significant percentage of those laid off are the ones crafting narratives in video games. It’s safe to assume that few would be shocked to learn that the departments least affected by layoffs were in the business and finance sectors. However, these departments were not immune, as 6% of respondents who were laid off worked in them. Causes for layoffs varied from reorganization (22%) to the closing of the studio (4%).
In addition to jobs, the survey took into account AI’s effect on the industry. For 30% of those surveyed, generative AI has had a detrimental vibe – an increase of 12% from the previous year. The usual reasons were cited, including theft, quality and regulation concerns among others. Interestingly, at the time of this survey, over half (52%) of respondents said their companies were utilizing AI. This potentially corresponds to the rising number of developers marking AI as having a negative impression.
The report also divulges statistics such as the platforms being used for game development. PC development leaped from 66% to 80%, a trend the report speculates could be attributed to the Steam Deck. It further notes that despite an Omida survey last year demonstrating 70% of developers were dubious about the long-term viability of live service games, a third of developers are still focusing on this area.
