Western game dev certainly seems to be in a bad place. I think there are probably a few factors explaining what is happening now:
1: Overhiring during the pandemic. There was a lot of money flowing into tech during the earlier days of the pandemic, and companies were hiring and expanding like crazy. The economy settled, and now companies are laying people off left and right. Not even limited to game dev, as we saw this occur for Facebook, Twitter, Google, Microsoft, and pretty much everywhere else in tech.
2: The knock-on effect. When big developers start to lay off staff in bulk, other companies may be incentivized to copy that behavior. It’s easier to justify firing a bunch of employees when everyone else is doing it, and then when you have a surplus of people in the market for a new job, you can selectively hire new talent for cheaper.
3: More attention in reporting. If it wasn’t a trend, a studio laying off 30 employees might not otherwise be newsworthy. A lot of studios actually make it an unfortunate common practice to lay off their contractors/temps right at the end of dev cycles so that they don’t get any sales bonuses. But there’s a lot of layoffs happening, so even smaller ones are generating buzz, and with a lot of workers’ rights/pro-union sentiments going around following the successful strikes in Hollywood and the automotive industry, people are starting to pay more attention when workers are being treated unfairly or being taken advantage of elsewhere.
Its also typical in game development, you dont need the ‘full team’ all the time, if your in preproduction you hardly need 100 programmers sitting around twiddling their thumbs
High interest rates make investing in risky projects like game development uninteresting. Why take risk if interest rates bring in high returns by themselves.
A lot of the games industry is backed by a constant flow of investment. Which has totally dried up. This company got 80 million in investment last year, this year can’t find more to keep paying the bills. Same is true for most of the announcements.
Then there is large companies like Microsoft, those layoffs are purely about paying shareholders extea money.
You are not logged in. However you can subscribe from another Fediverse account, for example Lemmy or Mastodon. To do this, paste the following into the search field of your instance: [email protected]
Welcome to the largest gaming community on Lemmy! Discussion for all kinds of games. Video games, tabletop games, card games etc.
Rules
1. Submissions have to be related to games
Video games, tabletop, or otherwise. Posts not related to games will be deleted.
This community is focused on games, of all kinds. Any news item or discussion should be related to gaming in some way.
2. No bigotry or harassment, be civil
No bigotry, hardline stance. Try not to get too heated when entering into a discussion or debate.
We are here to talk and discuss about one of our passions, not fight or be exposed to hate. Posts or responses that are hateful will be deleted to keep the atmosphere good. If repeatedly violated, not only will the comment be deleted but a ban will be handed out as well. We judge each case individually.
3. No excessive self-promotion
Try to keep it to 10% self-promotion / 90% other stuff in your post history.
This is to prevent people from posting for the sole purpose of promoting their own website or social media account.
4. Stay on-topic; no memes, funny videos, giveaways, reposts, or low-effort posts
This community is mostly for discussion and news. Remember to search for the thing you’re submitting before posting to see if it’s already been posted.
We want to keep the quality of posts high. Therefore, memes, funny videos, low-effort posts and reposts are not allowed. We prohibit giveaways because we cannot be sure that the person holding the giveaway will actually do what they promise.
5. Mark Spoilers and NSFW
Make sure to mark your stuff or it may be removed.
No one wants to be spoiled. Therefore, always mark spoilers. Similarly mark NSFW, in case anyone is browsing in a public space or at work.
6. No linking to piracy
Don’t share it here, there are other places to find it. Discussion of piracy is fine.
We don’t want us moderators or the admins of lemmy.world to get in trouble for linking to piracy. Therefore, any link to piracy will be removed. Discussion of it is of course allowed.
Is the entire gaming industry collapsing?
It seems like I’m reading headlines similar to this one almost daily, as of late.
Western game dev certainly seems to be in a bad place. I think there are probably a few factors explaining what is happening now:
1: Overhiring during the pandemic. There was a lot of money flowing into tech during the earlier days of the pandemic, and companies were hiring and expanding like crazy. The economy settled, and now companies are laying people off left and right. Not even limited to game dev, as we saw this occur for Facebook, Twitter, Google, Microsoft, and pretty much everywhere else in tech.
2: The knock-on effect. When big developers start to lay off staff in bulk, other companies may be incentivized to copy that behavior. It’s easier to justify firing a bunch of employees when everyone else is doing it, and then when you have a surplus of people in the market for a new job, you can selectively hire new talent for cheaper.
3: More attention in reporting. If it wasn’t a trend, a studio laying off 30 employees might not otherwise be newsworthy. A lot of studios actually make it an unfortunate common practice to lay off their contractors/temps right at the end of dev cycles so that they don’t get any sales bonuses. But there’s a lot of layoffs happening, so even smaller ones are generating buzz, and with a lot of workers’ rights/pro-union sentiments going around following the successful strikes in Hollywood and the automotive industry, people are starting to pay more attention when workers are being treated unfairly or being taken advantage of elsewhere.
Its also typical in game development, you dont need the ‘full team’ all the time, if your in preproduction you hardly need 100 programmers sitting around twiddling their thumbs
High interest rates make investing in risky projects like game development uninteresting. Why take risk if interest rates bring in high returns by themselves.
A lot of the games industry is backed by a constant flow of investment. Which has totally dried up. This company got 80 million in investment last year, this year can’t find more to keep paying the bills. Same is true for most of the announcements.
Then there is large companies like Microsoft, those layoffs are purely about paying shareholders extea money.