2023 was a landmark year for the video game industry, with numerous exceptional game releases captivating players around the world. However, behind the scenes, the year was marred by devastating studio closures and widespread layoffs. It was a year of triumph and turmoil, with the creators of these incredible games facing unprecedented challenges.

Mass Layoffs and Studio Closures

Throughout the year, the video game industry witnessed a series of unsettling events that shook the foundation of game development. Studios were shut down, and thousands of talented individuals found themselves without employment. The Game Awards 2023 also drew criticism for allocating only fleeting moments to recognize the hard work and dedication of developers who had received awards.

In a prime example of the turmoil, Microsoft’s acquisition of Activision Blizzard led to the company laying off 10,000 employees in January. This was just the beginning of a series of unfortunate events that unfolded throughout the year.

Series of Unfortunate Events

Across the industry, several high-profile studios were forced to make difficult decisions. Striking Distance Studios, known for their work on The Callisto Protocol, laid off more than 30 employees, while BioWare, the developer of Mass Effect and Dragon Age, let go of 50 employees, including long-time studio veterans.

The unfortunate trend continued in September as Immortals of Aveum developer Ascendant Studios laid off approximately 45% of its staff, and Epic Games, the creators of Fortnite, also implemented layoffs affecting 830 employees. This pattern repeated itself with studios like Naughty Dog, Telltale Games, and Media Molecule all making similar tough decisions as the year progressed.

December Despair

As the year drew to a close, Embracer Group closed the reformed TimeSplitters studio, Free Radical Design, following the closure of Saints Row developer Volition Games earlier in the year. Additionally, Hasbro, the owner of Dungeons & Dragons and Magic: The Gathering, laid off a staggering 1,100 employees in the weeks leading up to the holidays.

Long-term Impact

The ramifications of the widespread layoffs and studio closures of 2023 will be felt for years to come within the video game industry. The impact on the lives and careers of thousands of developers cannot be understated, and the gaming community stands in solidarity with those affected by these unfortunate events.

The year 2023 was a stark reminder of the challenges faced by the individuals and teams that work tirelessly to bring joy to millions of players. It is a year that will leave a lasting mark on the industry, and it is essential to recognize and support the resilience of the game development community.