Record Year for Gaming, But Job Losses Mount
Last year was a banner year for the gaming industry, with a slew of critically acclaimed games hitting the market. However, while gamers were enjoying the fruits of this success, the same cannot be said for those who actually make the games. Shockingly, over 10,000 industry professionals lost their jobs.
Profitable Companies, Layoffs Abound
Despite record-breaking sales, major companies like Microsoft and Activision Blizzard have implemented massive layoffs. Microsoft, after acquiring Activision Blizzard for a staggering $70 billion, let go of nearly 2,000 developers. This raises the question: why are job losses increasing when game sales are booming?
Executive Bonuses and Overpromising Sales Goals
The answer lies in the hands of CEOs and other executives who are prioritizing their own bonuses and shareholder expectations over the well-being of their employees. When companies fail to meet projected profits, instead of taking pay cuts themselves, executives are choosing to downsize the workforce.
Learning from Nintendo's Approach
Contrastingly, Nintendo took a different approach when faced with a similar situation. After the Wii U underperformed, leading to financial difficulties, then-president Satoru Iwata took a substantial pay cut and other executives followed suit. This allowed Nintendo to retain its employees and develop the successful Nintendo Switch.
Massive Layoffs in 2024
Unfortunately, other companies are not following Nintendo's lead. In 2024 alone, there have been over 5,000 industry layoffs, with Microsoft being responsible for a significant portion of them. Despite Microsoft's recent acquisition and record-breaking value of over $3 trillion, employees are still being let go.
A Harsh Reality for Gaming Industry Workers
It is clear that even within the gaming industry, where companies are generating enormous profits, employees are not immune to job insecurity. The situation highlights the need for a more compassionate approach from executives and a reassessment of priorities.
If you're interested in learning more about the gaming industry, be sure to read our piece on the silent increase in gaming prices through Deluxe Editions. Written by Georgina Young on behalf of GLHF.
