"Uncovering the Ongoing Layoffs Plaguing the Video Game Industry"
Originally Published 1 year ago — by Polygon
The video game industry has been hit with a wave of layoffs, with over 8,500 workers laid off in 2022 and 10,500 in 2023. The pandemic-driven industry boom led to overexpansion, but revenue growth did not hold, resulting in layoffs. Companies are facing challenges with slowing revenue, increased development costs, and a shift towards user-generated content models. Some companies, like Unity and Twitch, are struggling with profitability. Developers are unionizing and exploring alternative models to address the industry's cyclical hiring and firing behavior.