10 Percent of Game Developers Lost Their Jobs in 2024
Image Credit: Riot Games | Written by Andrew Bame
2024 wasn’t exactly a banner year for video game developers. Turns out, one in 10 devs found themselves on the receiving end of a pink slip, whether they were working on big-budget AAA blockbusters or small indie gems.
The Game Developers Conference just dropped its “2025 State of the Game Industry” report, which surveyed 3,000 developers. It found that 11% of them were laid off over the past year. If you include those who kept their jobs but watched their teams get hit by cuts, 41% of game devs felt the sting of layoffs in some way. That’s up from 35% in 2023, because apparently, things weren’t chaotic enough already.
Oh, and if you’re hoping 2025 will be better? Don’t hold your breath—58% of respondents said they’re at least “a little worried” about more layoffs coming this year.
Why the Axe Fell
According to the survey, companies mainly blamed “restructuring” for the layoffs. Translation: “We’re trying to make more money, but we’re not going to explain how.” Other reasons included declining revenue and market changes. And then there’s the lucky 19% of developers who got no explanation at all—just a “Bye, and good luck!”
Some devs pointed fingers at bigger issues, like:
Overexpansion during the pandemic (turns out, you can’t just keep hiring forever).
Skyrocketing production costs (making games isn’t cheap).
Players losing interest (apparently, we can’t all spend 20 hours a week gaming).
Unrealistic goals for the “next big hit” (not every game can be Elden Ring).
Leadership that made, let’s say, questionable decisions.
The Usual Suspects
If you’re wondering who handed out the most pink slips, big names like Microsoft, Sony, Riot Games, EA, Ubisoft, and Epic Games were all on the list. And yes, that includes companies raking in billions. Guess even a massive budget doesn’t guarantee job security.
AI, Hollywood, and Other Big Changes
Layoffs weren’t the only thing keeping devs up at night. The report also found a growing unease about generative AI. Only 13% of developers said AI is having a positive impact on the industry, down from 21% in 2023. Meanwhile, 30% believe it’s doing more harm than good, up 12%. Apparently, not everyone is thrilled about chatbots taking over creative jobs.
On a brighter note, Hollywood seems to be in love with gaming. Thanks to hits like Amazon’s Fallout and HBO’s The Last of Us, more games are getting adapted into shows or movies. In fact, 13% of developers said their work is being turned into on-screen entertainment, up from 10% last year. For those in AAA studios, that number jumps to 36%. So, if your favorite game isn’t a TV series yet, give it a minute.
TL;DR
2024 saw massive layoffs: 11% of game developers lost their jobs, and 41% were affected in some way.
Companies blamed “restructuring,” market changes, and rising costs, though poor leadership also got called out.
AI is causing more headaches than excitement, with concerns about its impact on jobs and creativity.
Hollywood’s obsession with video game adaptations is only growing, especially for AAA titles.
Let’s hope 2025 is kinder to game devs—though if you’re a developer reading this, maybe don’t unpack your desk just yet.
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