New State Of The Industry Report Provides Developer Thoughts On Layoffs, Acquisitions, A.I., And More

Last year was a fantastic year for games, with standout triple-A releases like Baldur's Gate 3, The Legend of Zelda: Tears of the Kingdom, Marvel's Spider-Man 2, and great independent games like Jusant, Sea of Stars, and countless others. But in 2023 alone, more than 10,000 developers and people in games-adjacent industries were laid off. Plus, the unchecked rise of A.I. continued, and Unity burned developers with its controversial new game engine policies, not to name a few other not-so-great parts about 2023 – it was a great year for games but one of the worst for those who make them. 

Now, just as 2024 has begun, the Game Developers Conference has released its 12th annual State of the Game Industry report. Its data was collected from 3000 developers surveyed back in October of last year. GDC and GameDeveloper.com partnered with Omdia, a research firm, to dissect the data. In its State of the Game Industry 2024 report, which you can view in full here, developers share their thoughts on A.I., layoffs, social media, and its role in marketing, game engines, and more. 

«The most striking observation derived from job losses in the industry – naturally a pressing concern for many,» Omdia research director Dom Tait writes in the report. «Among the insightful developer comments on the subject was the following: 'Studios grew too quickly during the pandemic.' This statement is born out of games industry data, which shows a Covid-driven hump of extra revenue in 2020 and 2021, collectively totaling $50 billion over expected figures.

»But 2022 and 2023 showed a reversion to the spend treeline seen prior to 2020, thus this reduction in headcount is partly caused by companies belatedly adjusting to the new, less positive market reality. However, with the forecast returning to steady growth to 2027, this ought to present a more stable picture for employment levels in the future." 

Below, we'll break down some of the highlights of the State of the Game Industry 2024 report. 

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