Gaming layoffs cut costs at the expense of new intellectual property – Knowligent
Gaming layoffs cut costs at the expense of new intellectual property

Gaming layoffs cut costs at the expense of new intellectual property

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Summary by Variety com • Bloomberg Television on Youtube • Published 11 months ago

Please note: This article is related to Variety VIP+’s special report “The State of the Video Game Industry,” available to subscribers only.

The Real Cost of Layoffs

Last year was a major victory for mainstream adoption of video games, with hugely successful TV and film adaptations of “The Last of Us” and “Super Mario” respectively making a strong case for the medium.

But while Hollywood watches in amazement at the power of prominent gaming IP, the developers who make such games are still paying the price.

The workforce is estimated to have declined by 5,900 in January 2024, more than double the full year of 2023. While 2022 was also a year of decline, the heaviest layoffs that year were largely due to regional instability resulting from Russia’s invasion of Ukraine, primarily through sanctions.