59% of game developers say the industry is in a bad place

Numerous launches in a short space of time, overpriced Triple A games, an installed base of users that changes little, There are countless reasons cited as being responsible for the negative moment in the games market.

Panorama that has led to the cancellation of projects, layoffs and studio closures. A downsizing of the market. A scenario like this contributes to the perception of those directly involved in this segment to have a less than optimistic view of the present and even the future, if important changes do not come into action.

According to a survey carried out by Game Developerin which around 600 game development studios participated, 59% believe the industry is in a bad situationonly 13% consider it to be a good time.

The outlook for what is to come is also not encouraging for most of those who participated in the interview. 49% believe that conditions will remain the same for the next 6 months. 19% believe it will get worse. A more optimistic view was registered by 25%, who believe in an evolution.

What is the main reason for this crisis?

For 61% of those interviewed, the main problem is the unrealistic expectations of investors, while 58% believe that everything is due to poor management. Other factors mentioned are: development cost (41%), competition (22%), high marketing cost (21%), lack of innovation (13%), other media (10%) and consumer demand (2% ).

Below target and increasingly high pressure

The survey also reveals that 48% of full-time employees fell below the projections of what the company was looking for, and that 40% feel that they are just at a break-even point. Only 13% managed to exceed the target

33% already project that they will not be able to meet the established goals before the end of the quarter, on June 30. 43% believe that they have found a balance.

Layoffs

Some surveys indicate that the 10,000 layoff mark has already been surpassed in 2024. Therefore, in just 6 months the number of layoffs reached the same threshold as in the whole of 2023, which was the same number of job cuts.

In March, when commenting on layoffs from the Xbox division, Phil Spencer cited the lack of growth as a crucial fact.

“And when you have an industry that is projected to be smaller next year in terms of players and dollars, and a number of publicly traded companies that are in the industry need to show growth to their investors, why else would anyone own a stock in someone else if it’s not going to grow?” said the head of the Xbox division.