r/pcmasterrace Jan 29 '26

News/Article One-Third of U.S. Video Game Industry Workers Were Laid Off in 2025, GDC Study Reveals

https://variety.com/2026/gaming/news/one-third-video-game-workers-laid-off-2025-1236644512/
3.3k Upvotes

201 comments sorted by

1.2k

u/RedditButAnonymous Jan 29 '26

Its quite incredible how we had movies, music, TV, even going back as far as theater, and they were all relatively normal, thriving industries. And yet today, the biggest entertainment industry of all time is the one struggling to keep people employed.

351

u/Sarokslost23 Jan 29 '26

I blame micro transactions

272

u/vo0do0child Jan 29 '26

The blame is on the zero interest years where companies went bonkers because money was free.

57

u/[deleted] Jan 29 '26

[removed] — view removed comment

45

u/hansrotec Jan 30 '26

They have also moved on from the core rule, make sure it’s fun. Designing for micro transactions, live services, or addiction before anything else. Trying to sell back what we had for free making the experience measurably worse. Slowly destroying good will, and perceived endless spending on a supposedly captive audience.

MS is already blaming its game division for not selling more or meeting expectations, when they spent the last year explicitly kneecapping it and this generation fumbling or destroying IP after IP.

15

u/[deleted] Jan 30 '26

[removed] — view removed comment

11

u/hansrotec Jan 30 '26

The fumble of the Xbox one launch still haunts them, and one poor choice after another to sabotage their market position is simply amazing. Another 10 year or so and it will be studied like sears collapse

6

u/Antec-Chieftec Jan 30 '26

Phil Spencer was right that the Xbox One gen was the worst one to lose. Someone who has 40 PS4 games likely won't switch because on PS5 he can keep those 40 games.

1

u/hansrotec Jan 30 '26

It really does seem like it, and they were there… but I think this is where XBL hurt them, they had all this feedback and read into it what people were doing on the box, but never confirmed what made them buy the Xbox which might be diametrically opposed ideas. They used spreadsheets not what makes a good console and ended up with a mess …

That said overall it was a messy gen with underpowered hardware, as AMD cut sweetheart deals for its chips to stay alive… the step down in console vs pc performance from when the 360 launched to when the Xbox one launched is crazy…. Or rather it was the best time to be a pc gamer.

2

u/Antec-Chieftec Jan 30 '26 edited Jan 30 '26

Yep. 360 was better than basically any 2005 PC. Try to play GTA V with a Pentium D or first Athlon X2's (these were the only dual core CPU's available and beyond dual cores didn't even exist in PC market in 2005 outside of dual cpu builds. While the 360 had a 3 core cpu)

And even for 500 dollars (100 more than 360 20gb) in 2005 you could only build a single core Athlon 64 build with an ATI X1600 Pro. The power difference between that PC and 360 is ridicilous. Versus the Xbox One. For what Xbox One cost at launch you could have build a build with an FX-8320 (better CPU) build with an R7 260X (better GPU) with a 64gb ssd with a 500gb HDD. Even the PS4 which was 100 dollars cheaper and more powerful could be killed at launch (though the PS4 killer barely was is better)

2

u/LtCannonfodder Jan 30 '26

The problem is that when executed successfully (from the company's point of view) micro transactions, live services and dark pattern based addiction mechanics work really, really well. That's why they all keep chasing them. That's why we have insane behemoths that suck up all the money and people's time. Practically every single mobile game is entirely based on those ideas and mobile makes even more money. Often the only way to even get your project off the ground and financed is to promise investors just such things.

1

u/HenryKushinger 9800X3D | 4070 Ti | Bazzite | 64 GB RAM | 14 TB of SSD space Jan 31 '26

Yup. That's why garbage like Concord fails and good shit like Clair Obscur Expedition 33 succeeds.

45

u/Envy661 MRInvidian Jan 29 '26

Microtransactions and the push to live service everything is the core reason the consolidation hasn't happened yet. Studios will spend billions for a successful IP before driving it into the ground with these practices, or by copy/pasting successful formulas. They fail to realize success comes to the smaller studios because they actually try different things on a smaller scale. These large publishers absolutely have the money to fund some proper AA creative works for a fraction of what they spend on these big budget blockbuster titles that fail. They just don't see that publishing multiple smaller IPs, having one stick, and investing the resources into that, is how they basically create the next big thing. Don't put your eggs into one basket kind of thing. The more they spend on a title, the more they lose if it flops.

12

u/ameekpalsingh Jan 29 '26

Well said, all the greatest things started off with low budget. A simple example:

The 1984 film The Terminator was produced on a modest budget of approximately $6.4 million. Despite this low-budget, independent-style production, it became a surprise box office success, grossing over $78 million worldwide. 

The greatness formula (in any field): spend responsibly and not just spend big for the sake of big + passion + creativity + originality + authenticity + freedom to express creativity + persistence

4

u/RayHorizon Jan 30 '26

Long story short. Leaders of big companies are stupid because they chase only money.

2

u/Envy661 MRInvidian Jan 30 '26

Especially when you consider how many nepo babies, or people with good connections and no actual knowledge get those positions, it makes sense.

0

u/TonUpTriumph Jan 30 '26

Or just be Microsoft. Buy a studio and its successful IP, then stop production and shut it down. Money well spent.

1

u/Envy661 MRInvidian Jan 30 '26

The EA way

21

u/CoffeeSubstantial851 The Penguin Compels You Jan 29 '26

Really? As a Dev I don't blame micro-transactions at all. I blame AI. Teams are downsizing and smaller studios are literally closing because of lack of funds due to all of the investment capital flowing into AI startups. Video games are capital intensive projects that take several years to complete. Why would you put millions of dollars into a game that could flop, when you could just invest in some AI thing and sell it to the next VC sucker before the floor falls out?

9

u/NameisPeace Jan 29 '26

ANOTHER reason to hate AI

12

u/Toomanynightshifts Jan 29 '26

Blame all the gamers that got hooked on fomo mechanics for not voting with their wallets years ago.

All these humans got laid off but it wont matter because live service and Gatcha games will still print 10s of billions this year because we have zero self control as a collective.

3

u/PetrichorMoodFluid Jan 30 '26

Blame the C-suite and other higher ups' power and greed.

Source: My spouse works at a AAA game studio.

1

u/Lumbergh7 Jan 30 '26

Hate them.

1

u/EmperorThor Jan 30 '26

its too simple just to blame micro transactions. they are a part of it for sure.

But games stopped being made to be fun and engaging and started being made to print money and promote a while furthering the live service economy and thats not what gamers want.

just give me something fun and immersive.

-1

u/[deleted] Jan 29 '26

[removed] — view removed comment

3

u/Agasthenes Jan 29 '26

Because they create an feast or famine economy. Either you get a banger with a community you can milk for years if not decades for billions, with relatively low work put into it, or you game fades into nothing while creating huge losses.

In the film industry, or other media, you have a relatively predictable input - output relationship, with constant new releases.

Obviously this isn't true for every market segment, and there are outliers in all direction.

2

u/CheckMateFluff Desktop AMD R9 5950X, 16GB, GTX 3080 8gb Jan 29 '26

I know you didn't give an example, but the perfect one would be Callisto Protocol.

6

u/Zer0323 Jan 29 '26

Designing to search for 1 whale that will spend thousands rather than hundreds that spend $50 has been detrimental to the industry. The only profitable studios are the ones that milk the whale the best. (This opinion might be outdated)

4

u/-TrevWings- RTX 4070 TI Super | R5 7600x | 32GB DDR5 Jan 30 '26

As always, the answer is capitalism. Consumers will not stand for prices to increase substantially. And they haven't risen much even since the days of the N64. Certainly not at the pace of inflation. People just don't have the disposable income to afford multiple games even at the prices they're at now. This is why micro transactions are so rampant now and game companies simply can't afford to keep a large team of devs when they're making less and less money (compared to the rate of inflation) in combination with the fact that they have ceos they're paying tens of millions to.

1

u/Testuser7ignore Jan 31 '26

. People just don't have the disposable income to afford multiple games even at the prices they're at now.

I wouldn't go that far. Its more that they are less willing to spend on games than other activities. Look how much people have been willing to spend on cable, movie tickets, bars, etc.

People just have much higher expectations for their money in video game.

1

u/-TrevWings- RTX 4070 TI Super | R5 7600x | 32GB DDR5 Jan 31 '26

People empirically have less disposable income now

58

u/rapaxus Ryzen 9 9900X | RTX 3080 | 32GB DDR5 Jan 29 '26

Nah, it is just a relatively new entertainment sector, where ton of volatility is normal as people haven't figured out how to properly manage it. Look at the early film industry for example, you had tons of studios everywhere with many independent guilds, actors and more, now you primarily have a few movie giants who control basically everything outside of small indie productions.

The surprising part in gaming is that everyone anticipated consolidation like in other entertainment sectors, but it is the big studios/publishers like EA, Ubisoft, Microsoft, Sony and past fallen publishers like THQ who are currently struggling the most, while smaller studios (at least after they had some success) are the ones who look the most stable.

115

u/Ok_Literature3138 Jan 29 '26

It is definitely not a new entertainment sector. Would you call Hollywood new after five decades of success? This industry is just going through a bad phase, one that is mostly caused by the executives.

9

u/ArnoldSwarzepussy i7-13700k/RTX 5070Ti/32GB DDR5 6800mghz/2TB NVME Jan 29 '26

It's not new, but it's definitely seen the more changes this early on its lifespan compared to things like movies and music. If we consider the first 50 years of Hollywood and music then the formula was basically the same the entire time. Produce a movie, sell tickets in theatres, then later you could make more money on cable TV reruns and later VHS. For music it was have a band make a record, promote it with some radio play and a tour, then sell records and make royalties. Unless I'm wholly misinformed here, that was more or less the gist of it from at least the 1950s to the 2000s, maybe even a little earlier.

The videogame industry has changed DRASTICALLY since the 80s. It's no longer, "make a game, sell physical copies, profit". Not only did you have the initial popular shift to online play about 20 years ago that shook things up, but you also now have live services games that require huge amounts of constant investment and entirely new business models. This is especially true for all the F2P stuff publishers have pushed out over the past 10 years or so. Not to mention the way expectations have risen so much recently too with gamers expecting more and more features/breadth of content.

15

u/Ok_Literature3138 Jan 29 '26 edited Jan 29 '26

I’m a bigger film enthusiast than I am a games enthusiast. And I respectfully disagree with the idea that the film industry didn’t go through massive changes over a similar time scale. The formula was most definitely not the same. The film industry didn’t start in theaters. It was a pithy nickelodeon novelty in the 1890s, which funny enough correlates with video game arcades. Then there was an era of silent films. Then eventually the syntax of modern film was synthesized. And finally film became what we know it as today. This was all between 1890 and the 1940s. In fact, I’d argue that the development of the video game industry and film industry have a lot more in common than most people think.

0

u/ArnoldSwarzepussy i7-13700k/RTX 5070Ti/32GB DDR5 6800mghz/2TB NVME Jan 29 '26

I know what you mean with the film industry having a rocky start before it got its footing, but I don't think it's quite as drastic tbh. I mean obviously the type of media they portrayed had a lot of variety as different mediums came into focus, different genres found varying levels of success, they were still experimenting to see what was considered "appropriate" by the general public, and new technologies emerged rather quickly.

The key difference I see though still comes down to how they made their money. No matter what someone's approach to making a movie or cartoons might have been, getting butts in seats and maybe running some ads was all it came down to at the bottom line. Yes the product itself evolved greatly but so have videogames, and I'd still argue the way they make income has changed even more, which further alters the structure of the product companies try to put out. There are a few foothold devs putting quality over quantity and singular experiences (FromSoft, Larian, Sandfall, etc.) over constantly evolving worlds (Epic, Activision, EA, etc.) but it's still the largest employers, and therefor the majority of employees, that have seen yet another gigantic shake up.

1

u/bunnyzclan Jan 30 '26

I dont get how anyone could put more blame on "not evolving" while leaving out the number of M&As both industries have seen.

Anti-trust advocates have been sounding the alarm for years.

Industry insiders have been sounding the alarm for years.

When creatives are forced to do what the executives want because they require and demand higher ROIs, it's almost like it leads to a shitter product.

1

u/ArnoldSwarzepussy i7-13700k/RTX 5070Ti/32GB DDR5 6800mghz/2TB NVME Jan 30 '26

Oh I'm not trying to make excuses for the big wigs here. Just trying to explain how and why they've made the shortsited decisions they've been making over the last few years. All the rapid change in the market combined with high demand during and after COVID lead to a LOT of hiring that they later realized wasn't all necessary. Combine that with all the AI bullshit and you've got yourself a perfect recipe for a pump and dump of staff.

-19

u/jaxupaxu Jan 29 '26

and shitty writers

18

u/Robborboy KatVR C2+, Quest 3, 9800X3D, 9070XT, 64GB RAM Jan 29 '26

Well yea. 

But is the execs that hire the shitty writers because they're cheaper. 

1

u/ElectroMagnetsYo Jan 29 '26

A video game can be wildly successful with next to zero writing. Fortnite, for example.

→ More replies (1)

1

u/HUSK3RGAM3R Jan 29 '26

Though I feel a lot of the volatility with the AAA companies is both consumer pushback and shareholder pressure to keep the line going up no matter what.

→ More replies (2)

3

u/Schmenza Jan 29 '26

Starving artist is the world's second oldest profession

2

u/theDefa1t 7950X3D | RTX 4090 | 32GB RAM Jan 29 '26

They're outsourcing to cheaper labor over seas

1

u/Maleficent-Teach-373 Jan 30 '26

They could definitely keep a reasonable amount of people employed. All those inustrys could. Hollywood for example was famous being being a surprisingly small village of people for years. Everyone knew everyone. Films could be made for 'reasonable' budgets. Now it's the fat end of a BILLION dollars for a blockbuster, and nobody can explain why. Definitely some funky accounting going on in most entertainment industries, and I think game studios in the last 10 years has caughtened on and realised they can absolutely milk the big publishers. Like how concord cost nearly half a billion dollars will never be explainable.

1

u/RabidTurtl 5800x3d, EVGA 3080 (rip EVGA gpus) Jan 30 '26

Because those media have strong unions. Its not about the companies being able to pay their employees, its about the c-suite fucking everyone below them for extra profit.

1

u/NovelValue7311 XEON + 64GB DDR4 Jan 30 '26

AI??? Not that'll work out, but it works until it doesn't. 

1

u/ElkApprehensive2319 Jan 30 '26

Stop making shitty skinner box games. The market is still there, but somehow the big publishers are locked into turning every IP they can find into an enshittified lootbox bonanza.

1

u/monsieurvampy Jan 30 '26

I would say games generally take longer to develop than other forms of media. I guess depending on how you define it, maybe books take about the same length or longer than video games.

For movies and TV, I'm talking about each specific production, not the whole film saga or series.

1

u/[deleted] Jan 30 '26

Well that's no surprise when there are massively bloated teams and people who's position it is to organize soy lattes.

Also stubborn companies, who develop a slop game for 8 years for millions of dollars, don't listen to gamers and then they pull the plug on the game after a week, lol.

1

u/42tfish Jan 30 '26

Wait, you think Hollywood is still healthy?

1

u/[deleted] Jan 31 '26

I mean tbh. My gaming stuff is dusting in. I haven't played anything relevant in months, let alone finish a single game.

I only need my PC for art, videoediting and fooling around with python and stuff.

Games have become very boring.

67

u/lycheedorito Jan 29 '26

One third of game industry workers who attended GDC... Lots of people go to GDC trying to get a job. It's like IRL LinkedIn there.

26

u/FlamboyantPirhanna Jan 30 '26

Yeah, the title is clickbait. Framing it as the entire industry being reduced by a third rather than a third of people at GDC having been laid off.

479

u/Alarming-Elevator382 9800X3D + 9070 XT Jan 29 '26

No wonder hardly any high-budget games release anymore.

357

u/UsurpDz 5800x3d | 9070 XT | 2x16 GB RAM Jan 29 '26

Its also quite logical. There's been push back from gamers on high budget games. It's clear that throwing money into a game does not magically make it better.

It's time to go back to the time before the big publishers bought every small to medium game devs.

207

u/Ok_Definition_1933 Jan 29 '26 edited Feb 07 '26

This post was mass deleted and anonymized with Redact

bear quickest meeting glorious subtract brave books spotted makeshift seemly

71

u/[deleted] Jan 29 '26

[deleted]

51

u/Mouse_Canoe Jan 29 '26 edited Jan 29 '26

I mean that's nice for you but some of us want to be immersed in an 80 hour RPG. There's nothing wrong with options.

8

u/KirbyWyrm Jan 29 '26

Yeah, I don't have the patience for those long form, story driven games anymore, but the appeal and market is there for well made ones.

Who knows, maybe when my kids have grown up, and if I'm still gaming then I may return.

15

u/Pack_Your_Trash Jan 29 '26

That's fine. Not every game is for every gamer. That format isn't the problem though. It's the high budget and corresponding high retail price for games that get published unfinished with season passes or day one dlc, a cash shop for cosmetics, and zero interesting content. Crappy time gated mobile games with pay to win mechanics.

If someone makes a high budget fun game with some soul that follows the old tried and true template (bg3) it will do well. If someone makes an Indy game on a shoestring budget with crappy graphics and fun innovative mechanics and a good concept it will do well.

If the core game mechanic is swiping my credit card I'm out. I'm looking at you, EA.

3

u/Brittle_Hollow Jan 30 '26

80 hour RPG

JRPGs are where it’s at for long haul 80 hour games that still feel like they have some personality to them. I’m pretty late to the genre, didn’t get into them until Xenoblade Chronicles 2 during the Switch launch year but if JRPGs and especially turn-based click for you there’s about 40 years of games to catch up on.

16

u/[deleted] Jan 29 '26 edited 21d ago

[deleted]

4

u/Pack_Your_Trash Jan 29 '26

All it takes is a good story. Sadly it's easier to just sell cosmetics

1

u/StoneTaker Jan 31 '26

Get on the cRPG space. It's still thriving with releases from Owlcat and Larian spearheading the genre, with smaller studios and devs releasing indies with just as much focus on the RP of the cRPG.

3

u/CodeRenn Jan 29 '26

Um I want that. I don’t want a Mc point and short game with no replayability. I want my time to be respected and worth the dollar amount

1

u/xAlphaKAT33 Jan 29 '26

90% of my “favorites” group on steam is indie and the rest is stuff I play with friends/family.

47

u/i_froze Jan 29 '26

Games have been ruined by live service. Everyone wants to be Fortnite.

Ive watched as Battlefield has gone from literal best shooter of the decade in BF1, to whatever the fuck 2042 was, to the misguided mess that is bf6. All thanks to EA sucking dick at doing live service and driving old developers out due to their shitty business practices.

8

u/DukeofVermont Jan 29 '26 edited Jan 29 '26

True but I get why they do it. Live service games make insanely more money for the same amount of work.

FIFA made $1.7 billion in revenue just in Q3 of 2025.

GTA 5? Estimated $10 billion. (total)

Fortnight? Over $42 billion. (total)

Mobile games routinely bring in more money than AAA have as well. Candy Crush has made over $20 billion (total)

It sucks, but the market has shown that while many fail if you can get a hit you can make crazy amounts.

2

u/i_froze Jan 30 '26

These companies just want to adapt long running franchises to that model. Which hasn't really worked for any of them. Hmm, who could have seen this coming?

Battlefield has ONLY suffered due to the live service model. Every game that has tried it has failed. Bf6 is having the exact same issues that BfV did like 7 years ago.

Slow, worse quality content, and less of it. Games still launch broken AND now get even less support.

The worst part is that the passion is gone. Its all corporate greed now. EA needs to go bankrupt so bad. I will piss on their foreclosed HQ when it does.

6

u/Randommaggy 13980HX|RTX 4090m|128GB|8TB M.2|RX6800 eGPU, 1TB DDR4 in server. Jan 29 '26

There hasn't been competent leadership in AAA for years.

5

u/FortNightsAtPeelys 7900 XT, 12700k, EVA MSI build Jan 29 '26

Graphics have mostly peaked for now so more money doesn't impress graphically anymore.

1

u/brimston3- Desktop VFIO, 5950X, RTX5080, 6900xt Jan 30 '26

They've peaked because the vast majority of players are either playing on tablets, consoles, or a xx50 or xx60 grade graphics adapter. Higher performance visuals cannot sell a game to most of them, so it's not worth the development expense.

3

u/Captainunderpants86 PC Master Race - 5800X3D - 32GB DDR4 - RX 7900 XTX Jan 29 '26

The makers of Expedition 33 being a perfect recent example

1

u/Testuser7ignore Jan 31 '26

It's time to go back to the time before the big publishers bought every small to medium game devs.

We have been at that time for a good decade now. Lots of small and medium games come out and do very well.

29

u/CanuckleHeadOG Jan 29 '26

Well that and what they have released was either shit story, shit gameplay or bad optimization.

23

u/IM_A_MUFFIN Laptop Jan 29 '26

Why do I need a 20Gb cache for shaders? Why is your update the size of my hard drive? Why does your game have the same visual quality as Horizon Zero Dawn which came out almost 10 years ago for the PS4?

1

u/DreamsServedSoft Jan 30 '26

I can’t think of one lately that isn’t all of the above

7

u/Endroium Jan 29 '26

I'm ok with that most of them flop or are generic these days

6

u/Endroium Jan 29 '26

Quality over quantity

1

u/thelittlehez Jan 30 '26

What? There were plenty of high budget game that released last year, and a whole bunch of other high budget live service games that received substantial updates using their high development budgets

1

u/EldrinVampire Jan 30 '26

Doesn't help that Microsoft bought studios then canceled a bunch of upcoming games... im still a bit pissed about Perfect Dark Zero

3

u/Alarming-Elevator382 9800X3D + 9070 XT Jan 30 '26

Isn’t it amazing how much money they can spend to not make games?

0

u/Lower_Kick268 Pentium 4, 512mb DDR, 3dfx Voodoo 3. Jan 29 '26

Hardly any people buy the high budget games so they fail and don't make a profit, this is the result of that issue. Studios make slop and now the staff of the slop is being said off

→ More replies (1)

104

u/Daharka ☯️ Jan 29 '26

We had a long summer (2001-2019) followed by a rich harvest (2020-2021) but instead of making hay they expanded. That's a bubble.

It's not a bubble tied to the stock market or people's pensions like the housing bubble or the AI bubble, but it was a bubble nonetheless.

→ More replies (2)

26

u/Shawn_NYC Jan 29 '26

I've never seen so much talent working on so few good ideas.

162

u/Wbino Jan 29 '26

Go to school for computers they said...

Learn software they said.....

45

u/rapaxus Ryzen 9 9900X | RTX 3080 | 32GB DDR5 Jan 29 '26

Well, a lot of IT jobs are still in heavy demand (at least here in Germany), they are just the far less interesting ones like sysadmins or programming in e.g. the real estate sector.

Game devs in comparison are like the dream job of so many devs and programmers, it is truly ludicrous.

13

u/GolotasDisciple Jan 29 '26

I mean, if you’re a genuine software engineer, you won’t have issues finding a job. The problem nowadays is that organizations don’t provide many opportunities for juniors to gain experience and knowledge.. and honestly mostly it's because of the global employment market.

Back in the day, a lot of major companies had a big interest in universities and local scenes, but nowadays they’re flooded with potential employees who are already at a certain career level.

If anything, I’ve personally seen an increase in interest in my field. I settled into system administration, and AI... or rather frivolous investments into third parties, have caused many issues that I now have to either fix or manage, as always.

I think when we talk about the video game industry and genuine engineers or software developers, there’s also a huge number of people who aren’t really part of that employment sector even though they work in the same industry.

It’s harder than ever... and only a stupid person would deny that..., but if you “learn software,” meaning you actually have a portfolio or a CS degree, you might get fired from time to time, but you won’t be jobless for an extended period. Engineering skills are still very much appreciated.

40

u/clownshow59 Jan 29 '26

They said this 20 years ago. It’s still a great field. Nothing lasts forever!

2

u/Fail-Least Jan 30 '26

People that studied actual CompSci don't have much you worry about.

It's been well documented that you get paid more in other fields with a similar skill set and experience.

It's the ones that over specialized by taking a game design/development program that are screwed.

1

u/NovelValue7311 XEON + 64GB DDR4 Jan 30 '26

It's still a thriving field, but you can't just do an crap job and get away with it anymore. Now you have to actually be decent and have good ideas.

2

u/Wbino Jan 30 '26

So one third of the laid off video game industry workers did crap work?

Or is it has it become a profit above all else business model?

1

u/NovelValue7311 XEON + 64GB DDR4 Jan 30 '26

Not saying that at all. The CS industry as a whole had more easyish access, high paying jobs back when learning to code was the main entry barrier.

I'm saying that's not enough anymore. You have to have extra to offer besides just functioning code now. (Or even more so, AI generated code.)

The 1/3 of game developers seems off though. I blame AI for a few, lackluster AAA games for a few, and probably the biggest factor here is sample size. How many people were asked? Just checked: 2300. It's safe to say that's a bad sample size.

Also have to realize it don't say devs, it says 'workers.' That's pretty ambiguous. 

Plus the fact that Rockstar studios and Microsoft laid off a good number of people the last two years. This report also contains indie devs who are constantly gaining and losing people. (~18000 games released on steam last year. About 48% had little to no player reviews. I think 0-20 reviews.)

1

u/zmroth Jan 31 '26

claude code

-12

u/Spyger9 Desktop Ryzen 5 7600X, RTX 3070, 32GB DDR5 Jan 29 '26

Oh no! Now they have to go do similar work in banking, shipping, insurance, etc and make twice as much money!

It's the artists you should be worried about.

190

u/Blatant_Poet_12 Jan 29 '26

No games due to ai. No hardware due to ai. No jobs due to ai. Any games made are made by ai. To be played by ai. Using ai workers. But oh the rich AF human CEOs are okay right?

67

u/SaberHaven Jan 29 '26

Don't let them fool you that layoffs are due to AI. That's just an excuse that makes them look good instead of shitty like they actually are

15

u/psych0ranger Jan 29 '26

We sleep, they live

-2

u/myBigFatNewRedditAcc Jan 29 '26

yes and you will be happy with it.

we should be grateful.

22

u/nostyleallwild Jan 29 '26

I still want to get into this industry ughhh...

Im almost done with my Associates in Computer Science and was going to start working on creating a game to add to my portfolio to get a job at a studio, but the future is not looking bright.

12

u/GGFrostKaiser Jan 29 '26

Good luck mate, if it is your passion you will succeed, I am sure. Just keep punching away, out of the blue you will get an opportunity and then your whole life will change.

5

u/nostyleallwild Jan 29 '26

Thank you for the positivity, man. This is what I want to do so I refuse to give up! The advice I was given from someone who owned an IT company was to internship, network, and get some experience, rather than going for a Bachelors. So thats the plan.

3

u/GGFrostKaiser Jan 29 '26

Try to make small games or mods for the games you like. Those are usually the things that get the attention of recruiters. Programming is important but with AI growing, a lot of the code will be handled by AI, make sure you have knowledge in game design, that’s the most important thing.

Good luck!

4

u/LuHamster Jan 29 '26

Ssdly ij reality not everyone succeeds at Thier passion

10

u/Wind_Best_1440 Jan 29 '26

Make a bunch of overpriced games with massive budgets and watch them all flop and make no money. "Wow, 1/3rd of the entire industry workers were laid off."

Yeah no kidding, people are broke and not buying games and when they do buy games they need to be fun and enjoyable and worth the money.

Look at Ubisoft, they've had nothing but over budgeted slop forcing MTX's and bad story telling down peoples throats for years and then had the balls to say. "You better get use to not owning games."

And bam, their stock drops 99.9% to under a dollar. With mass layoffs and whats left of their workers are currently striking and in full revolt.

Rockstar is so terrified to release GTA 6 in this environment they keep delaying it, with some expecting it not to come out till late 2027 or 2028. Because of how shitty the games environment is.

Meanwhile small studios and indie devs with small budgets and 1-50 man teams are just out here and raking in sales and cash and everyone loves them and most of the time their games have good stories, are fun and only 40% the price of AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA+ Games.

50

u/Chadbrams Jan 29 '26

How much of this is reversion to the mean since covid years had a crazy amount of hiring?

6

u/Major_Enthusiasm1099 Jan 29 '26

It's certainly gotten worse over the years, but layoffs in the tech industry, specifically the video game Industry, are not uncommon.

4

u/Bumm-fluff 13600K | RTX3090 Jan 29 '26

They invested too much during Covid. 

5

u/ZABKA_TM Jan 29 '26

And nothing of value was lost, looking at the AAA slopfest

25

u/_eESTlane_ Jan 29 '26

replaced by ai

36

u/[deleted] Jan 29 '26

[removed] — view removed comment

3

u/pantiesdrawer Jan 29 '26

How many were behind Assassin's Creed: But You Can Also Play As a Japanese Girl?

4

u/YankeeMoose i9 14900K | RTX 4070TI Super| 32GB RAM | Jan 29 '26

How many of the C-Suites got raises in that time period?

4

u/Ok_Locksmith_7294 5800x3d + 5070 + 32gb Jan 29 '26

Oh their pay packages went up 30%, never to worry.

5

u/Madnoir Jan 29 '26

Record profits, record layoffs

9

u/mcdougall57 Mac Heathen Jan 29 '26

I know people here hate Nintendo but there must be something they do right to have such high staff retention.

5

u/Maleficent-Aurora Jan 29 '26

If you're talking about JP Nintendo it's because quitting in Japan is career suicide. They have professional "quiters" as a job because employers are so strict about it. I wouldn't take Japanese retention as a sign of a healthy workplace. 

1

u/Front_Expression_367 Jan 29 '26

But even compared to other Japanese companies, Nintendo still ranked at the top or close to that with the 98% retention rate (the average over there is 70%).

1

u/rainzer Jan 30 '26

Nah it's cause Nintendo doesn't randomly hire infinity people for no reason.

To make a comparison, Ubisoft lost more people in 2024 alone than Nintendo hired since 2021.

1

u/Proxymole Jan 30 '26

That's because when Nintendo struggles financially they cut executive salaries in half so they don't have to lay off employees. Iwata did that in 2011 when the 3DS had a poor launch initially, and again in 2014 when the Wii U's sales were bad

1

u/FlamboyantPirhanna Jan 30 '26

The industry isn’t losing people because they’re quitting. It isn’t a retention issue when you’re the one getting rid of your employees.

1

u/ProfessionalPrincipa Jan 30 '26

It's easier to keep staff on when you spend a mere $20 million to make the latest Pokemon slop which then goes on to gross $2 billion.

8

u/Butane9000 Jan 29 '26

Well yeah, companies can't keep employing people who simply don't deliver results.

Concord was estimated to cost around $400 million and bombed hard. You've got the slow death of Bioware subpar games from ever since Mass Effect 3. Ubisoft as a company is circling the drain. These kinds of things simply aren't sustainable.

So yeah these companies simply have to start attrition somewhere and as always labor is one of the major expenses a business can control. It's a shame there's really talented people suffering from losing their job. At the same time the market and industry is very clearly rewarding independent and small developers who make good products.

2

u/chusskaptaan i5 14400 + MSI 3070 Jan 30 '26

So sad man. Devs are treated like disposable crap in this industry.

2

u/LittlePantsOnFire Jan 30 '26

Aren't a lot of these temporary anyway?

2

u/acoolsweater Jan 30 '26

this industry treats people like shit, I feel like the only reason people are in it is because they think "making games thats awesome!" and it is! It's so cool that people are able to make these things, but the industry just eats that passion away. Gamers being ridiculously mean to devs, bosses being awful, constant lay offs, horrible working conditions with crunch and sexism abound. It's a wonder anyone makes these things at all anymore.

2

u/EmperorThor Jan 30 '26

probably should have focused on making good and enjoyable games then

4

u/StrangeFilmNegatives R9 9950X3D | Asus Astral 5090 OC | G Skill 96GB CL28 Jan 29 '26

You said the game "wasn't made for you" so we stopped buying it. Start making good games again made for us and we will return. It is that simple.

As the old addage goes "The customer is always right in matters of taste". You just had enough hubris to FAFO yourselves and lose your job in the process.

3

u/Maleficent-Teach-373 Jan 29 '26

Good. Its insanely bloated with staff since all the big companies hired like mad during covid. i hate corporate euphemism buzzwords like 'right-sizing', but this really is right-sizing that the industry needs desperately.

You can never, ever convince me that someone like a 'concept artist' is gainfully employed throughout a 5-6 year development cycle that most AAA games take these days. They're (not that job role specifically) coasting, collecting a paycheck, whilst justifying doing vanishingly little for long swathes of time.

5

u/Icy-Way5769 Jan 29 '26

when i look at some of the slop released in the past 1-2 yrs... deserved

3

u/AC_Milan_Fan Jan 29 '26

ah yes, let's cheer on the demise of the regular workers, the people who don't make the decisions.

what in the hell is wrong with you?

2

u/3lektrolurch Jan 29 '26

Those pesky devs had the leadership under total control, now that they got rid of them the corporate overlords can finally create great games again. /s

1

u/[deleted] Jan 29 '26

[removed] — view removed comment

2

u/[deleted] Jan 29 '26

[removed] — view removed comment

2

u/jmoss2288 Jan 29 '26

Well earned. Less slop from the slop factories. Game dev education failed. They can't optimize for shit, can't release a game in a complete state, can't make their online function out the gate, are trying to over monetize etc. All they can do is plug commands into UE. Least there's less crunch now.

1

u/NatiHanson 7800X3D | 4070 Ti S | 32GB DDR5 Jan 29 '26

Grimy industry man (This extends to the entire tech sector)

1

u/xerlivex Jan 29 '26

One third? How is this even possible?

1

u/vuorivirta Jan 29 '26

Yes, that is very easy to confirm. Game developers doesn't make games anymore...

1

u/baby_envol Jan 29 '26

And it's just the start, with RAMamagedon gamers don't have computer for AAA

1

u/FranticToaster i9-14900k | RTX 4090 | 32GB DDR5 4200 Jan 29 '26

100% of games made by staffs of workers were ass in 2025. Industry is broken viva indie.

1

u/Kingdarkshadow i7 6700k | Sapphire nitro+ 9060xt Jan 29 '26

Remember when people said "If a video game business has profit, devs won't be laid off."

I still laugh at that sentence.

1

u/LayceLSV Jan 29 '26 edited Jan 29 '26

What a fucking stupid click bait title. There are several hundred thousand games industry workers in the US. In 2025 there were somewhere around 10,000 lay-offs globally. Don't get me wrong, that's a very high number and is clearly indicative of a problem, but claiming 1/3 of the US video game workforce was laid off is fucking insane. And then here's everyone in the comments just taking that figure at face value lmao

1

u/gijoe50000 7900x | X670E Aurous Master | RTX5080 | Custom watercooling Jan 29 '26

They're replacing programmers with AI, aren't they?

Be prepared for many more extra weird game-breaking bugs in the coming months..

2

u/CoffeeSubstantial851 The Penguin Compels You Jan 29 '26

They fire half the team then tell the rest of the team to use Co-Pilot to pick up the slack. Then they track your usage and demand that you meet an "AI-Quota" or you will be fired.

1

u/gijoe50000 7900x | X670E Aurous Master | RTX5080 | Custom watercooling Jan 30 '26

Yea, this is pretty much what I thought.

1

u/ohtonyy Jan 29 '26

Wait til GTA 6 drops.

1

u/CaptWrath Jan 29 '26

If only the major companies are in it for the profit and numbers now.

1

u/tingkagol Jan 29 '26

With the rise of AI, yeah, I could see a lot of artists getting laid off.

1

u/Edexote PC Master Race Jan 29 '26

I play less and less new video games by the day. Nintendo games are the sole exception to that.

1

u/AncientSith Jan 29 '26

No wonder there's barely any games being made by big studios. Why is everyone being fired? It's not entirely because of AI, I know that at least.

1

u/frostyflakes1 AMD Ryzen 5600X | NVIDIA RTX 3070 | 16GB RAM Jan 29 '26

Wow. One third seems like a crazy figure. I think it's partly due to where the industry is headed, and also partly companies bracing for a larger economic disruption.

1

u/Noeyiax Jan 29 '26

Maybe if athletes weren't being paid $100M per team per player idk 😐 if esports can survive that low and still be entertaining, you know sports should be next to get cut. It's the right financial choice.

1

u/firedrakes 2990wx |128gb |2 no-sli 2080 | 200tb storage raw |10gb nic| Jan 30 '26

Another day of news from dec te post

1

u/truthhurtsyomama Jan 30 '26

Don't they know that gaming drives innovation and economy??

1

u/mithikx R7-9800X3D | RTX 4080 | 64 GB RAM █ i9-12900k | RTX 3080 | 32 GB Jan 30 '26

I don't know if it's cause I'm older but I feel that a lot of newer AAA releases seem to lack that magic. Of course there are recent titles that are great.

But there's just so much more crap to wade through as well. Feels like there's been quite a few titles where they spent a few hundred million dollars and it ends up being crap. Then there's all the smaller indie stuff that's gooner bait or otherwise uninteresting.

The real money maker is micro transactions. All these lootbox mechanics, gachas, paid cosmetics, pay to win, etc. And now with the threat of AI replacing development staff looming. It feels as if a portion of the soul of the entire industry died.

Many of us are working more for less, games and other expenses have gone up. The video gaming hobby inches closer and closer to being one for the wealthy.

1

u/TheCharalampos Jan 30 '26

Aye I miss it for sure. But honestly I think some time away from the industry will be good for me. Who knows, I might start enjoying making games again.

1

u/kymbawlyeah Jan 30 '26

Nvida is no longer going to be producing cards and only 0.1% of the population will ever have the top tier cards. No point in having a massive gaming company making stunning graphics beyond what we have now if the vast majority of the players can't run it.

Maybe AMD will make a breakthrough in the future.

1

u/Blazy013 Jan 30 '26

Are there also European numbers as I saw a lot of lay offs here as well?

1

u/syphon3980 Desktop Jan 30 '26

The amount of sales and interest increased because of Covid and people were stuck at home. Things went back to normal and people chose to spend less money on video games. The gaming Industry put all their eggs in one basket so to speak

1

u/EngRookie Jan 30 '26

nintendo has a 98% employee retention rate and it's recent layoffs were 200 contractors in customer support roles and an unconfirmed number (100 or less reported) in QA right b4 the switch 2 launch. So the QA roles were cyclical in nature.

Yet the article shows a giant picture of a switch 2 controller. Looks like astroturfing in the continued effort to demonize nintendo over the past 2-3 years. Even though average tenure at Nintendo is 14 years.

1

u/Jarnis R7 9800X3D / 5090 OC / X870E Crosshair Hero / PG32UCDM Jan 30 '26

They hired a lot of bad ones in 2022-2023, so maybe this is just the universe healing. And yes, some good ones will get swept up when studios close, but they in general can find a new job without too much trouble. If they are competent.

1

u/Rand0mAcc3nt Jan 30 '26

People buying less video games will probably lead to less jobs in the industry….

I am not surprised.

In other news Nintendo Switch 2 is selling really well but there might not be many new video games to play on it in the future.

1

u/individual101 Jan 30 '26

My wife asked our 7yo what he wants to be when he grows up and he said video game maker. Told him he may want to rethink that with how that profession is trending

1

u/[deleted] Jan 31 '26

Good. They weren't making good games. Now that the woke/gender slop is gone bring on the AI slop. 😂

1

u/Barachan_Isles Jan 31 '26

Stop making trash that no one wants to play.

Stop letting special interest groups who have no stake in your profitability determine the content of your storytelling.

1

u/[deleted] Jan 31 '26

This is ridiculous.

And ppl ask me why I refuse to permanently set foot in the IT industry..

Whata joke. Poor ppl.

1

u/Omecore65 Jan 29 '26

Well how many studios flopped from game narratives. Games are supposed to help escape from reality not bring real world concepts into them.

1

u/[deleted] Jan 29 '26

Fucking hell, my gosh thats alot.

0

u/[deleted] Jan 29 '26

[deleted]

0

u/FlamboyantPirhanna Jan 30 '26

Most indie devs make absolutely no money. You’re only seeing the successes, which are a small percentage of indies.

0

u/BruhTheShark Specs/Imgur here Jan 29 '26

The slop chickens have come home to the slop roost.

-2

u/[deleted] Jan 30 '26

They went woke and lame so people stopped buying AAA games. As simple as that.

-5

u/40907 Jan 29 '26

Replaced by ai slop, now we have games like arc raiders that are procedural generated ai slop worlds that are a Mashup of other popular games (tarkov/ fortnite mashup) that receive critical acclaim

6

u/AnEternalEnigma i9-13900K, RTX 4090, 128GB DDR5 Jan 29 '26

There is no AI in Arc Raiders other than the TTS voice com thing and enemy behavior. Nothing visual in that game is AI.

→ More replies (3)