One in 10 game developers lost their job in 2024. That’s according to the results of the annual Game Developers Conference state of the video game survey. The survey sampled over 3,000 developers and covered a number of topics including industry layoffs and what kind of games developers are working on.
Prolific layoffs have ravaged the industry over the last two years making the question of their impact on developers one of the most important in the survey. In addition to 10 percent of developers losing their jobs, 41 percent of respondents said they had been impacted by layoffs in some way, either by being laid off directly or seeing coworkers or colleagues in other departments let go. The survey also noted that the number of people impacted is potentially much higher because of the students and graduates who reported having a difficult time simply getting a job in the industry at all.
When asked what reason companies gave for layoffs, 22 percent said restructuring while 18 said declining revenue. 19 percent gave no reason at all. Developers, though, have their own ideas about why layoffs keep happening. In an analysis of responses to what developers think the reason behind layoffs is, the majority were general statements about the industry’s over-expansion during the pandemic. Companies acquired workers and studios in hopes of meeting a level of demand for games that dried up as covid restrictions loosened. However, some developers believe the reason for layoffs is much simpler. Companies like Microsoft and Sony still reported growing revenues despite multiple rounds of layoffs and studio closures. It’s no surprise then that 13 percent of respondents attributed layoffs to corporate greed.
In addition to layoffs, the last few years have also seen the failure of a number of high-profile, big-budget, live-service games. While there has been some success in that area with new games like Marvel Rivals, it’s generally tough to launch a live-service game that can compete with the overbearing likes of Fortnite, Roblox, and Call of Duty. 2024 was also the year that Balatro, Animal Well, and Astro Bot dominated headlines and award lists suggesting a greater appetite for those kinds of smaller-scoped, single-player experiences. It’s interesting, and perhaps concerning then, that according to the survey, over 30 percent of AAA developers are working on a live-service game.
When it asked developers their thoughts on live-service games the survey answered, “One of the biggest issues mentioned was market oversaturation, with many developers noting how tough it is to break through and build a sustainable player base.”