With gaming layoffs sweeping through the industry, you would be forgiven for believing it is a problem that’s suffered equally across the world. However, it appears as though North America has been hit with disproportionate cuts, with 70% of layoffs occurring in the continent, with over 50% coming in the state of California alone.
It’s important to recognise that a large concentration of popular video game developers are located here, but if there are other factors at play, they could be used to better understand some of the root causes of these layoffs.
California Gaming Layoffs
A report in 2023 revealed California to have the largest share of game development compared to other US states. Assuming that this trend has continued, economic conditions that lead to layoffs are going to naturally be concentrated there.
This makes sense when you consider that California is often seen as a globally recognised hub for tech and innovation with ‘Silicon Valley’ in the Bay Area still housing some of the leading brands in the industry.
However, outside of that, it is most likely that the high numbers in this state are merely representative of the scale of layoffs across the rest of the country.
The Future of Gaming Industry Layoffs
This might, naturally, raise some alarm bells about how the industry will continue to thrive, or whether it’s even sustainable at all.
This is part of a broader discussion about the increasing costs of games and how development of larger titles might become unaffordable to the studios.
This is one of the reasons that indie games have continued to receive a larger amount of attention, fostering a smaller, more dedicated community – though these too are at risk from their inclusion in subscription services like Game Pass that might impede their ability to garner revenue.
International Developers
Does this mean that developers in other parts of the world aren’t struggling as much with layoffs?
It is no doubt a global problem, though the sheer number of game studios in the US creates a cutthroat environment.
However, with tech shortages and challenging economic conditions all around the globe, developers everywhere are searching for ways to make their development more sustainable. With so much money being invested in development, slightly underperforming can be much more damaging than it once was.
