According to one unofficial tracker created by video game artist Farhan Noor, there have been 8000 layoffs in 2024 so far, following an estimated 10,500 layoffs in 2023. The leaders of Microsoft, Embracer Group, Epic and other industry giants have made swingeing cuts to their workforces. While larger companies have inevitably seen the largest reductions, many smaller developers and publishers have also cut staff or even closed their doors. Circumstances vary by company, of course, but as regards the biggest publishers, there are some broad overlapping causes: reckless or, if you prefer, “overambitious” expansion and overhiring during the pandemic lockdown gaming boom; lower-than-hoped returns on new technologies and business models such as NFTs; and rising global interest rates, which have scared away potential investors.
The carnage was uppermost in Larian CEO’s Swen Vincke’s mind when he accepted Baldur’s Gate 3’s Best Narrative gong at the GDC Awards last month. According to Vincke, the layoffs can be traced straightforwardly to a pattern of executive greed that sees company leadership betting the livelihoods and stability of their workers on whatever new idea seems capable of delivering instant growth for shareholders.
