GDC’s Annual Report Reveals Widespread Layoffs in the Video Game Industry

Image: Alex Olney / Nintendo Life

The Game Developers Conference (GDC) has released its annual “State of the Game Industry” report, and the findings are troubling. 2023 proved to be a challenging year for game developers, marked by substantial industry layoffs and studio closures. From Vanpool and Volition Studios to Brace Yourself Games, Crystal Dynamics, and Free Radical, GDC’s latest report indicates that a staggering one-third of video game developers have been affected by various layoffs.

According to the report, 35% of developers disclosed that they were impacted by layoffs in some form, whether it be within their team or company, or as individuals who were laid off. The biggest share of layoffs was experienced by quality assurance (QA) teams, with 22% of QA developers being laid off in 2023. Conversely, business and finance roles only saw a 2% layoff rate.

Of those surveyed, 7% reported being directly laid off themselves, while 17% knew colleagues who were laid off. Additional data from technical artist Farhan Noor’s tracker on videogamelayoffs.com further supported these numbers. Furthermore, GDC inquired about respondents’ future concerns and found that 56% of them feared potential layoffs at their workplaces in 2024.

Furthermore, 2024 has already seen troubling stories, such as Thunderful’s plans for a company restructure that will likely impact 20% of its workforce. As concerns mount, GDC’s report also revealed that approximately one-third of developers are considering switching game engines, likely attributed to the recent Unity runtime fee controversy. Meanwhile, 84% of developers are apprehensive about the implications of Generative AI, with only 12% expressing no concerns at all.

Steamworld Build — SteamWorld publisher Thunderful is undergoing a “restructure” later this year. — *Image: Thunderul Games*

Amid all these challenges, some positive trends have emerged, as GDC’s report mentions an increasing incorporation of accessibility features in video game projects. Additionally, there is growing support for unionization in the industry, as 57% of developers believe it is essential, with 5% already being part of a union.

While the future remains uncertain, the report offers valuable insights into the current landscape of the video game industry, highlighting both its opportunities and its challenges.

What is your perspective on the State of the Game Industry 2024 report? Do you share concerns about the future of game development? Share your thoughts in the comments section.

[source gdconf.com, via pushsquare.com]