The video game industry faced significant challenges in 2024, with record layoffs surpassing even the grim figures of 2023. By mid-November, estimates suggested that at least 14,000 people had lost their jobs. Many of those laid off will find new jobs, but the industry is bleeding talent and experience.
The numerous canceled projects due to studio shutdowns will lead to a noticeable drop in new releases over the next several years. However, there were also some positive developments. Some companies have taken steps to improve working conditions amid talent loss.
Capcom raised its starting salaries by almost 28% and paid a one-time bonus to existing employees. Another developer, , announced it will raise basic salaries by around 12% starting next April. In a surprising turn of events, Microsoft shut down Tango Gameworks, the studio behind the surprise hit “Hi-Fi Rush.” Fortunately, the South Korean publisher Krafton acquired the studio, welcomed all its employees back and acquired the “Hi-Fi Rush” IP rights, planning to expand on it with future projects.
Workers’ rights in the video game industry have been lacking for years, but increased efforts to unionize are beginning to take shape.
Industry challenges and glimpses of hope
Notable unions formed in 2024 include one at Activision in March and another at ZeniMax in early December.
Swen Vincke, director of “Baldur’s Gate III,” has been a vocal critic of the focus on profits at the expense of everything else in the video game industry. He called out the shortsightedness of publishers, highlighting how they fire employees to meet quarterly profit goals, only to rehire them later, perpetuating a harmful cycle. Over the last 12 months, there has been a resurgence of smaller-scale AAA games from big publishers.
Games like “Astro Bot,” “Senua’s Saga: Hellblade II,” “Prince of Persia: The Lost Crown,” and “Indiana Jones and the Great Circle” have received significant attention, focusing on the quality of gameplay hours rather than sheer quantity. The live service space has become overly crowded, making it difficult for new titles to make a significant impact. Many new games simply copy existing successful ones without introducing anything unique, leading to disinterest from potential players.
The term “woke” has become an almost meaningless catch-all for criticisms people have about inclusivity and diversity efforts in video games. The discourse around Diversity, Equity, and Inclusion (DEI) initiatives often becomes tiresome and counterproductive. As we progress, the focus should remain on creating a fairer, more sustainable industry for everyone involved.
While layoffs and missteps are alarming, there are heartbreaking trends like salary raises, unionization, advocacy for fair treatment, and the return of more minor, high-quality games.
April Isaacs is a news contributor for DevX.com She is long-term, self-proclaimed nerd. She loves all things tech and computers and still has her first Dreamcast system. It is lovingly named Joni, after Joni Mitchell.
