The video game sector continues to face significant workforce challenges, with the latest data indicating that more than half of employees who were let go in the past two years remain without a job. This finding comes from the 15th State of the Game Industry Report, which was published on Thursday by the organizers of the GDC Festival of Gaming.
The report highlights a rising trend in layoffs across the industry. Approximately one third of all respondents stated that they have been laid off within the last 24 months. This figure represents an increase from 28% in the previous year’s survey. For professionals based in the United States, the rate of layoffs is even higher, standing at 39%.
The impact of these reductions has been immediate for many workers. Of those who reported being laid off, 68% lost their positions within the past 12 months. The report further notes that nearly half of all surveyed employees said their companies conducted some form of layoffs during the same period. These cuts were most prevalent at AAA studios, where 68% reported layoffs, compared to 35% at older indie studios and 14% at younger indie studios.
The difficulty in finding new roles is starkly reflected in the application numbers. Sixty-two percent of the surveyed workforce reported applying for at least 20 positions, while 25% indicated they had applied for 100 or more jobs. Despite these efforts, 54% of those who were laid off stated that they are still unemployed. Overall unemployment among the survey group has risen to 21%, up from 13% in the prior year.
For those who did manage to secure new employment, the outcomes varied. Nine percent of re-employed respondents left the game industry entirely, while 4% chose to start their own companies or studios. The report aims to provide a comprehensive snapshot of the current industry state, reflecting on the year’s developments.
This year’s edition of the report was released earlier than usual. Organizers explained that this edition, as well as future reports, will be adjusted to release near the end of the year. This timing is intended to better reflect the current state of the industry and serve as a yearly snapshot.
The data is derived from responses by over 2,600 game industry professionals. This sample size marks a 12% increase compared to the previous year. The survey also examined the integration of new technologies, finding that 40% of professionals now use generative AI tools as part of their jobs, a four percent increase from the previous year.
Usage of generative AI is widespread among those who adopt it, with 57% reporting daily use. Adoption rates are highest among those in business operations and services, mobile-only studios, and teams working on free-to-play games. However, company policies on AI usage vary significantly by size. Twenty-seven percent of AAA workers feel encouraged or pressured to use these tools, whereas only 9% of indie studio workers report similar pressure.
The report also details the current landscape of game development platforms. Ten percent of respondents are developing for the next PlayStation, while 8% are working on Xbox’s Project Helix. PC remains the dominant platform for development, cited by 83% of respondents. Figures for the PlayStation 5 and Xbox Series X/S remain consistent with previous surveys, at 47% and 40% respectively.
The next major industry gathering, the 41st edition of GDC, which is now branded as the GDC Festival of Gaming, is scheduled to take place from March 1 to March 4, 2027, at the Moscone Center in San Francisco.
