In 2024, the video game industry faced a tumultuous year filled with layoffs, studio closures, and canceled games. The annual Game Developers Conference in March served as a reminder of the industry’s struggles, with the theme “Survive till ’25” reflecting the need for developers to hold on for dear life. Layoffs in the industry reached record highs, with over 10,000 developers losing their jobs and one-third of game-makers reporting being affected in some way. The industry also faced attacks online, with labor organizers at big studios like Activision Blizzard and collective action around protecting jobs from the encroachment of AI.
Despite some wins for labor organizers, the industry’s collective brain drain continued as workers lost jobs en masse. By mid-year, the layoff tally had already surpassed that of the previous year, and it was predicted to be 40 percent higher by the end of 2024. According to industry adviser and producer Matthew Ball, the explanation for these layoffs is complex and involves various factors such as development costs, staffing, consumer spending habits, and game pricing.
The struggles faced by the industry also had an impact on the quality of games released in 2024. High-profile releases like Suicide Squad: Kill the Justice League were commercial failures, and online right-wing groups reduced it to a single mantra: “go woke, go broke.” This reductionist view ignores the many reasons for a game’s poor performance and places the blame solely on diversity, equity, and inclusion (DEI).
While there were still some incredible games released in 2024, such as Balatro, Final Fantasy VII Rebirth, Metaphor: ReFantazio, Astro Bot, and Black Myth: Wukong, they couldn’t distract from the overall bleak narrative surrounding the industry. For indie developers, the threat to their existence was even more substantial, with dozens of small studios shutting down quietly and without much fanfare.
With limited opportunities for funding from investors, developers turned to alternative methods to finance their games. Some took matters into their own hands, highlighting the resilience and determination of those in the industry. Despite the challenges faced in 2024, the passion and dedication of those who make video games continue to drive the industry forward.
