Video Game Industry Faces Significant Layoffs in 2023
In the year 2023, around 6,100 video game developers are expected to lose their jobs as a result of layoffs or the closure of their development teams.
The Impact of Layoffs on the Gaming Industry
The website videogameslayoffs keeps track of all the layoffs that have occurred during this period. However, it is important to note that the exact number of employees laid off may not be known for all companies. Out of all the months, September witnessed the highest number of layoffs, with 17 companies downsizing their staff.
Closure of Development Studios
More than 80 development studios have announced permanent closure so far. This includes studios like Calypte, Dang, Puny Human, Volition Games, Mimimi Games, Vanpool, CyberConnect2 Montreal, Antimatter Games, Campfire Cabal, Kiloo Games, PixelOpus, and the most recent addition, Puny Human.
The CEO of Puny Human explained that their studio had to close due to a client’s refusal to repay a significant debt, which prevented them from meeting their financial goals moving forward.
Layoffs at Unity
Unity, a prominent player in the gaming industry, witnessed the highest wave of layoffs. Nearly 900 employees lost their jobs at Unity, with 600 being laid off in January and an additional 300 developers experiencing the same fate in May.
Layoffs have not been limited to video game development teams. Big companies like Microsoft, Meta, and Disney have also made significant cuts, letting go of 10,000, 21,000, and 7,000 people respectively this year.