2024: Video Game Industry Crisis Deepens

2024: A Year of Struggle for the Video Game Industry

2024 proved to be a year of immense hardship for the video game industry. At the Game Developers Conference, the prevailing sentiment was one of survival, as record-high layoffs and online harassment plagued developers.

Layoffs and Studio Closures

Layoffs in 2024 drastically surpassed those of 2023. Advisor and producer Matthew Ball estimates that job losses will be approximately 40 percent higher than the previous year. This widespread job loss accompanied numerous studio closures and game cancellations. The reasons are multifaceted, encompassing development costs, studio staffing, consumer spending, and game pricing.

The Impact on Games

High-profile game releases like Suicide Squad: Kill the Justice League underperformed commercially. Online groups attributed these failures to diversity, equity, and inclusion (DEI) initiatives, a claim that overlooks the complexities of the situation. Despite the release of several critically acclaimed games, including Final Fantasy VII Rebirth and Black Myth: Wukong, the overall narrative of the year remained bleak.

Indie Developers Face Existential Threat

Indie developers faced a particularly severe threat. Dozens of small studios closed in 2024, with the actual number likely higher due to many quiet closures. The industry faces a complex storm, with multiple factors contributing to the ongoing crisis.