A blaze of layoffs in the gaming industry, lights shining in the ice age of employment

At the end of January, Microsoft carried out a restructuring of 1,900 people, mainly at the acquired Activision Blizzard. On February 27, Sony Interactive Entertainment announced a 900-person workforce reduction, including the disbandment of its London studio, and the gaming industry is currently experiencing a wave of layoffs. In the meantime, we would like to introduce game developers with a strong independent spirit who are trying to survive.

■ It has already surpassed last year’s restructuring situation.

On January 25, news broke that Microsoft had carried out a restructuring of 1,900 game developers and business divisions, mainly at Activision Blizzard. In the same month, Unity Technologies continued to reduce its workforce on an unprecedented scale, laying off 1,800 people, or 25% of its total workforce.

Afterwards, on January 31, Eidos Montreal, which developed the Tomb Raider series and other studios under the Embpressor Group, laid off 97 people, and on February 27, Sony Interactive Entertainment laid off all employees, including the dissolution of its London studio. A restructuring of approximately 900 employees, equivalent to 8%, was announced.

Additionally, on February 29, Electronic Arts announced that it would discontinue development of a new FPS with the theme of ‘Star Wars’ and lay off 5% of all 650 employees. Although details were not disclosed, large publishers in the gaming industry are reexamining their portfolios, including restructuring of Codemasters of the ‘F1’ series and Glu Mobile, the mobile division, last week.

[그림] The news that Electronic Arts’ new ‘Star Wars’ development has been halted is unfortunate news for fans who have been waiting for a sequel.

According to the foreign news agency Kotaku, the number of layoffs in the gaming industry announced in the first two months of this year reached 8,100. This figure already exceeds the total number of layoffs in 2023. Manpower layoffs are taking place at a tremendous pace.

In particular, not only large companies, but also 30 people from People Can Fly for ‘Outriders’, 24 people from ZA/UM for ‘Disco Elysium’, 94 people from Supermassive Games for ‘Until Dawn’, and 94 people from ‘Life is Strange: True Colors’. 30 people at Deck Nine Games were also laid off, a development company that created well-known works.

The gaming industry easily overcame the Lehman shock 15 years ago, perhaps because many people spend time playing games at home when their spare funds dwindle, but things seem to be a little different this time. Large publishers are focusing on developing and operating live services that can expect stable profits rather than releasing new titles one after another. Global console game console sales and, by extension, smartphone sales are sluggish. It can be said that further market expansion cannot be expected.

[그림] ‘Video game industry layoffs’ illustration created by AI. I hope that those who have been laid off can find new employment where they can use their creativity.

Additionally, the emergence of generative AI has also played a role in automating a series of processes ranging from art, music, bug checking, and programming. Managers will be cautious about expanding employment and weighing the rationality of outsourcing and licensing.

■ New developers also appear one after another

Of course, many game developers are true creators who are skilled at expressing themselves through interactive media and entertainers who try to entertain gamers with their ideas and skills. As development costs have been lowered in the first place, it also has the advantage of being able to continue self-development even if you are confined to your home for a while, as long as you have funds and support from your family.

Considering that indie studios continued to release interesting works and create new trends right after the Lehman Shock, it is not easy to conclude that the game industry is in a recession.

In fact, CD Projekt Red recently established CD Projekt Red North America in Boston, Massachusetts to develop its new work ‘Project Origin’. In addition, Fun Dog Studios, comprised of veteran developers who developed ‘Mass Effect’ and ‘Horizon: Zero Dawn,’ and Cult of the North, comprised of members who participated in the ‘Candy Crush’ series. North) and BulletFarm, led by David Vonderhaar, who played an active part in Treyarch’s ‘Call of Duty’ series, there has been news of a series of startups, showing the same dynamism as before in the gaming industry.

[그림] Artisan Studios, headquartered in Canada, is well known for developing games incorporating Japanese style, such as ‘Astoria Ascending’. It is said that a branch will be established in Saudi Arabia to create employment for 200 people.

There are several other pieces of news about the start-up of emerging developers. I would like to take this opportunity to introduce it.

■ AntiStatic Studios

Antistatic Studio, which includes Lukasz Ludkowski, who participated in scenarios such as ‘Cyberpunk 2007’, and Kris Temper, who was an environment artist for the ‘Bioshock’ series, is a completely remote studio.

The new game ‘Code Name Hornet’ is said to be a PvE shooting game that overturns conventional wisdom. ARG-type dummy sites for Mortfield Industries and AnomaLeaks, organizations expected to appear in the game, have already been revealed. It is done.

■ Shapeshifter Games

Shapeshifter Games, founded in Champaign, Illinois, is an independent company formed by members of Volition, which ended its 30-year history in August 2023 during the reorganization of Embressor Group, which was in financial trouble. Key members include creative director Brian Traficante and studio head Matt Madigan. Although the new project is not known, it is expected that inxile Entertainment will cooperate in the development of the action game ‘Clockwork Revolution’ announced in June 2023.

■ Hundred Star Games

Hundred Star Games, a London-based company, is said to be already developing AAA titles. The founders are the duo of Sefton Hill and Jamie Walker, co-founding members of Rocksteady Studios, famous for the ‘Batman Arkham’ series, who left the company in October 2022. They are currently developing an undisclosed title with about 25 core members, but are said to plan to grow to 100 members in the future.

■ MataCore Berlin

‘Merge Mansion’, a mobile puzzle game released in 2020, has recorded 50 million downloads to date and is a mega hit that earned $136 million (approximately KRW 188.3 billion) in 2022. Although it is the first work for developer MetaCore of Finland, it plans to establish a new branch in Berlin, Germany to produce additional content and use it as a base for new work development.

Metacore is one of the developers that has gained momentum by acquiring the copyright to ‘Everdale’, a village-building simulation for mobile based on a board game, from Helsinki powerhouse Supercell in January 2023.

■ Absurd Ventures

Rockstar Games’ official announcement of ‘Grand Shift Auto 6’, aiming for release in 2025, brought great joy to gamers around the world. It was in June 2023, long before the big news, that Dan Houser, the father of GTA, founded a new studio, Upthird Ventures.

It’s unclear whether it’s a game in the first place, but quite impressive projects called ‘American Caper’ and ‘A Better Paradise’ are in motion, aiming for release in 2024.

Reporter Jang Yong-kwon [email protected]