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NEWS: 41% Developers in 2025 GDC Survey Impacted by Layoffs, 11% Experienced Layoffs




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mdo7



Joined: 23 May 2007
Posts: 6695
Location: Katy, Texas, USA
PostPosted: Tue Jan 21, 2025 2:30 pm Reply with quote
Can't say I'm surprised by this. Yeah, I agreed about the A.I thing. Also, the layoff at game companies also concerned me.

I'm also very concerned that this generation and the last generation has a lack of new I.P. franchises from AAA developers and that includes Sony, and Microsoft compared to the PS3/360/Wii era when there seems to be more creative IP franchises being created in that era. So yeah, I find that disturbing that there's a lack of new IPs from AAA developers. We're getting sequels from established IP franchises (which is OK, but still doesn't mean that people will take notice of the lack of new IP), and we're seeing more indie game development (which is good, but won't keep the distraction of AAA developers not creating new IP franchises for that long), and I'm happy to see retro games are still in active forces. But the micro-transaction and the DLCs are turning off a lot of people from this model of video gaming.
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Greed1914



Joined: 28 Oct 2007
Posts: 4696
PostPosted: Tue Jan 21, 2025 3:36 pm Reply with quote
No real surprise that layoffs leaned more towards narrative areas and less towards "business and finance." Less creativity and more 'how do we make money?'.

My guess is that devs will probably treat the story/script writing as something more like the QA part. They'll rely more on outsourcing early on when the need is higher and have fewer in-house employees doing it.
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AiddonValentine



Joined: 07 Aug 2006
Posts: 2385
PostPosted: Tue Jan 21, 2025 5:29 pm Reply with quote
Good grief, when your entire industry loses 10% of its work force, that is a disaster. I've seen some articles that straight up have the XBox on them, considering MS are the biggest culprits. Then there's the whole problem with the tech industry as it goes through its awkward phase into an industry about maintenance rather than breakthroughs. What a mess
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thecowardlyantoine



Joined: 04 Aug 2023
Posts: 27
PostPosted: Tue Jan 21, 2025 7:30 pm Reply with quote
I guess it's time for studios to start making good games again.
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varmintx



Joined: 31 Jul 2006
Posts: 1244
Location: Covington, KY
PostPosted: Tue Jan 21, 2025 8:01 pm Reply with quote
Boy, that sure is a lot of terrible.
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Romuska
Subscriber



Joined: 02 Mar 2004
Posts: 818
PostPosted: Tue Jan 21, 2025 8:25 pm Reply with quote
The wrong people are making too much money off these games and are making horrendous decisions to keep their wealth in place.
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Zased



Joined: 30 Nov 2024
Posts: 20
PostPosted: Tue Jan 21, 2025 9:59 pm Reply with quote
That seems pretty bad to me yet I keep hearing from gaming outlets how 2024 was the best year in gaming ever and anyone who has issues about the state of the industry is misinformed. Not sure what to think now.
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Issac Sarrowtail



Joined: 16 May 2011
Posts: 103
PostPosted: Wed Jan 22, 2025 3:14 am Reply with quote
mdo7 wrote:
Can't say I'm surprised by this. Yeah, I agreed about the A.I thing. Also, the layoff at game companies also concerned me.

I'm also very concerned that this generation and the last generation has a lack of new I.P. franchises from AAA developers and that includes Sony, and Microsoft compared to the PS3/360/Wii era when there seems to be more creative IP franchises being created in that era. So yeah, I find that disturbing that there's a lack of new IPs from AAA developers. We're getting sequels from established IP franchises (which is OK, but still doesn't mean that people will take notice of the lack of new IP), and we're seeing more indie game development (which is good, but won't keep the distraction of AAA developers not creating new IP franchises for that long), and I'm happy to see retro games are still in active forces. But the micro-transaction and the DLCs are turning off a lot of people from this model of video gaming.


I'll be honest it seems clear to me that expecting the AAA developers to create something is asking for quite a lot given that the market right now has very little margin for error.

Most of those developers and their publishers will hone in on what they think is safe, but that's only going to go so far. and it also seems clear to me that it has very little runway.

It truly scares me how much of Iwata was right, the man had quite the read on the market and it flows at the time, and where it all might lead. It is an utter shame that his warning landed on deaf ears, and then he died.


I think the thing that bugs me the most right now is that there seems to be an assumption that if you build AAA game that gamers will come to it... ask for Square Enix how that's working, because it isn't.
My personal corner of the gaming world is the FGC, and aside from the constant cry for content the thing that I see missing right now is that the games that the community builds from isn't trying to attract new players. and the latter is a lot more important, as someone who witnessed "the Dark ages" personally.

We need to build, we need to grow, we need a space where one can make an error and it doesn't land one on a street corner asking for change. The industry right now is so horribly afraid of doing anything, that it remains stagnant while the world keeps turning.... that won't last forever and I fear that bad things will happen because of it. They already are when it concerns the layoffs, because quite a few of those folks aren't coming back.

Zased wrote:
That seems pretty bad to me yet I keep hearing from gaming outlets how 2024 was the best year in gaming ever and anyone who has issues about the state of the industry is misinformed. Not sure what to think now.


It continues to be pretty bad in my eyes, because again the entire market seems to be shrinking. Even places that we're seeing "unlimited growth" like mobile... aren't. I'm not saying that good things didn't happen over the year, because they did. I'm just not in the habit of understating a downward trend for an industry that is used to monumental highs.
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TokimekiCrisis



Joined: 01 Nov 2022
Posts: 57
PostPosted: Wed Jan 22, 2025 3:25 am Reply with quote
Issac Sarrowtail wrote:
My personal corner of the gaming world is the FGC, and aside from the constant cry for content the thing that I see missing right now is that the games that the community builds from isn't trying to attract new players. and the latter is a lot more important, as someone who witnessed "the Dark ages" personally.


Fighting games seem like they're in the complete opposite position in my opinion. My own issue with fighting games is they seem more focused on trying to attract new players at the expense of alienating old ones. So many of them have completely dumbed themselves down either through auto-combos or just generally lowering the skill ceiling. It's why I can't stand Strive and went back to the older Guilty Gear games I grew up with. That and modern fighting games embody some of the worst aspects about modern gaming in the way they're monetization with season passes and DLC.

That probably extends to other genres as well. There's a lot of focus to target non-gamers and when that audience doesn't show up that means layoffs. So many franchises that used to be at the top of their game are now struggling because they banked on replacing their old player base with a new one. It's why I appreciate games that know what they are and what they want to be and cater to their fans.
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Davy Sprocket



Joined: 21 Feb 2023
Posts: 38
PostPosted: Wed Jan 22, 2025 8:27 am Reply with quote
According to the GDC 1/3rd of AAA developers are working on live-service games so I expect there will be even more layoffs in the future when most of those don't find success. Not a fan of live-service games myself.
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enurtsol



Joined: 01 May 2007
Posts: 14899
PostPosted: Wed Jan 22, 2025 1:17 pm Reply with quote
AiddonValentine wrote:

Good grief, when your entire industry loses 10% of its work force, that is a disaster. I've seen some articles that straight up have the XBox on them, considering MS are the biggest culprits.


Lol, that's not what the numbers say. Let's see how many cancellations have Sony done lately - heck, one studio was created then closed without even getting a chance to release a single game:

Arrowhead Game Studios - Helldivers 2 - Released
Bend Studio's game - Canceled
Bluepoint Games' God of War - Canceled
Bungie's Marathon - In development
Deviation's game - Canceled, studio closed
Firewalk Studios' Concord - Released, un-released, studio closed
Firesprite's (reported) Twisted Metal reboot - Canceled
Guerrilla Games' Horizon co-op game - in development
NCSoft Horizon MMO - Canceled
Haven's Fairgame$ - In development
London Studio's fantasy game - Canceled, studio closed
Naughty Dog's The Last of Us Online - Canceled
Neon Koi's mobile action game - Canceled, studio closed
Unannounced studio's (reported) Gummy Bears - In development

Just because Sony is very secretive about their closures doesn't mean people don't notice it happening. Sony has closed more studios this gen than released first-party PS5 games

Microsoft fires a lot of people because they hire a lot of people



MS went from Q1-21 160k to Q1-25 230k - they hired a lot of people and grew their workforce over 40% in just 4 years

Now let's see Sony has been shedding workforce by almost 40% for more than a decade now:



Playstation fired 8% of their workforce in early 2024 despite a successful 2023 and without the excuse of a merger, and now this week, just months after acquiring Alamo Drafthouse theater chain, laying off 9% of Alamo's workforce

I mean, c'mon man, that narrative is getting tired, lol
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SilverTalon01



Joined: 02 Apr 2012
Posts: 2421
PostPosted: Thu Jan 23, 2025 7:14 am Reply with quote
Zased wrote:
That seems pretty bad to me yet I keep hearing from gaming outlets how 2024 was the best year in gaming ever and anyone who has issues about the state of the industry is misinformed. Not sure what to think now.


There were many highly profitable games in 2024 like Black Myth and Helldivers. There were also many AAA games with hundreds of millions of dollars spent that flopped. Some studios don't listen to their audience and instead try to pander, and it isn't very realistic to act like you're making a niche game while spending 200+ million on it where you are requiring multiple millions of sales to break even. The studios making successful games aren't laying off. They're hiring.
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Stampeed Valkyrie



Joined: 10 Aug 2014
Posts: 863
Location: PA
PostPosted: Thu Jan 23, 2025 11:29 am Reply with quote
I'm not sure how these numbers surprise anyone who hasn't by chance been living under a rock.

Western game companies have decided to throw themselves on the cross of DEI.. for a Modern Audience that does not exist. If they do, they don't spend enough money to support to the studios.

I figured these numbers would be worse, with publishers partnering with kiss of death groups like Sweet Baby or others like it, Add brand managers who are activists who kill the game before it even gets off the ground with just terrible decisions and PR nightmares.

And on the flip side, Korean and other Asian publishers are knocking it out of the park releasing games that gamers want to play.

Between Game studios and Hollywood, its like a race to see who goes under first.
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BadNewsBlues



Joined: 21 Sep 2014
Posts: 6397
PostPosted: Thu Jan 23, 2025 4:04 pm Reply with quote
mdo7 wrote:
when there seems to be more creative IP franchises being created in that era. So yeah, I find that disturbing that there'sa lack of new IPs from AAA developers.


It shouldn’t be that surprising general rule of thumb is if you take risks and fail you’re going to be less inclined to keep taking those same risks. And instead play it safe hence why we keep seeing new Assassin’s Creeds, Final Fantasies, & Call Of Duties.

thecowardlyantoine wrote:
I guess it's time for studios to start making good games again.


Because all the games that have been made the last decades have been bad?

TokimekiCrisis wrote:
That probably extends to other genres as well. There's a lot of focus to target non-gamers and when that audience doesn't show up that means layoffs. So many franchises that used to be at the top of their game are now struggling because they banked on replacing their old player base with a new one. It's why I appreciate games that know what they are and what they want to be and cater to their fans.


This can cut both ways. If you keep making your game the same specifically to appeal to your established base you’re simply going to go through stagnancy and wind up seeing that built in player base move on to something new and different anyway.

Stampeed Valkyrie wrote:
Western game companies have decided to throw themselves on the cross of DEI.


Yeahhhhh let’s not spout this nonsense. DEI has nothing to do with gamers complaining about games being too short, too long, nickel and diming them for content, coming out with game or experience killing bugs, digital storefronts going offline rendering games inaccessible, games winding up in development hell, cheaters running amok in multiplayer games, use of AI etc.

This narrative can stay it’s ass home in 2014.


Stampeed Valkyrie wrote:
And on the flip side, Korean and other Asian publishers are knocking it out of the park releasing games that gamers want to play.


A number of which would include service games which last I checked the gaming community in the west tends to hate and some of which have shut down not to long after getting western release if they ever got one.
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AiddonValentine



Joined: 07 Aug 2006
Posts: 2385
PostPosted: Thu Jan 23, 2025 6:12 pm Reply with quote
Issac Sarrowtail wrote:

I'll be honest it seems clear to me that expecting the AAA developers to create something is asking for quite a lot given that the market right now has very little margin for error.

Most of those developers and their publishers will hone in on what they think is safe, but that's only going to go so far. and it also seems clear to me that it has very little runway.

It truly scares me how much of Iwata was right, the man had quite the read on the market and it flows at the time, and where it all might lead. It is an utter shame that his warning landed on deaf ears, and then he died.


Pretty much and it's why all these "reasons" given by c-suite are so grating. They act like these were all unavoidable acts of God when Nintendo is sitting over there making record breaking profits, a robust lineup, good development environment, and is set to basically make another big console this year despite being the SMALLEST of the platform holders in terms of employees. There are no excuses for anyone else.
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