In 2024, one in ten video game developers lost their jobs, a record high for the industry. The industry continues to face canceled projects, studio closures, and other challenges.
This is reported in the 2025 State of the Game Industry report from the Game Developers Conference.
How many developers were laid off
Over the year, more than 14,000 developers lost their jobs. One in ten industry workers (11%) reported being laid off. The largest number of layoffs was in the narrative sector (19% of the total), while the business and finance department suffered the fewest losses — only 6%.
41% of game developers felt the impact of layoffs on themselves, 29% said their direct colleagues were laid off, another 18% found layoffs in other teams. 4% reported being laid off due to studio closures.
The most common reasons for dismissal:
- restructuring — 22%;
- decline in profits — 18%;
- changes in the gaming market — 15%.
19% of respondents said they were not informed of the reason for their dismissal.
The impact of AI on the industry
30% of respondents believe that generative AI will have a negative impact on games and the industry. In 2023, only 12% said so. Among the biggest problems, developers note intellectual property theft, energy consumption and the fact that games become worse quality due to the use of AI.
Also note the potential bias of AI programs and regulatory issues.
More than half of respondents — 52% – said that their companies have already started using AI, and 36% have used new technologies themselves. 80% of developers said they are currently creating games for PC, up from 66% in 2023, as they generate almost twice as much revenue as consoles.
Among other things, 16% of developers reported working on browser games, the highest figure in a decade.
Another interesting element is that the gaming industry relies on developers who finance their own projects themselves, such among those surveyed 56%. They said they invested their own money in creating games. A further 28% take up project-based or publishing-based funding deals.
At the same time, 89% of respondents who invested their own money in games say it was a successful decision for them.