You may have noticed that there have been a lot of layoffs in the gaming industry in 2023. But with that year behind us, things don’t necessarily get better. Many gaming company executives expect all layoffs to make way for permanent closures by 2024.
It is estimated that more than 10,000 jobs were cut in the gaming industry last year, a trend that will continue in 2024. Moreover, it is likely to get worse, several CEOs of gaming companies told GamesIndustry.biz anonymously. One CEO calls 2023 the year of layoffs and 2024 the year of closures.”
- Check out these gaming deals!
This applies to studios but also to publishers and other gaming-related companies. According to this CEO, there are “too many companies that don’t make a profit in video games.” The industry is facing “two painful years.”
Industry is struggling with a surplus of games
This has largely to do with the pandemic, according to another CEO. There was a lot of demand for games at the time, which meant that too many projects were given the green light at that time. Publishers are already signing up for fewer games, but for a healthier industry, the release calendar must return to looking like it did before the pandemic. That will take at least two years.
A similar statement was recently made by the CEO of publisher Nacon. He indicated that digital stores are flooded with games, making most of them practically invisible. Studios that make smaller titles need a specific, untapped niche to stand out.
