DodoFinance Breaking News Made For You!
The gaming industry is facing a turbulent period as thousands of video game industry workers are being hit with mass layoffs at various game developers and publishers in recent months. Companies such as Microsoft, Sony, Unity, and Riot have collectively let go of approximately 7,800 employees, attributing the layoffs to overexpansion during the pandemic gaming boom.
Experts point to broader forces such as changes in consumer gaming preferences and access to games as contributing factors to the industry’s current challenges. It is predicted that the industry may not see significant improvement until 2025, with the release of highly anticipated games like “Grand Theft Auto VI” and Nintendo’s successor to the Switch console.
The layoffs are a direct result of overspending by publishers and developers during 2021 and 2022, fueled by the COVID-19 pandemic. While global gaming industry revenue experienced a significant increase in 2020, it has since declined, leading to job losses and layoffs.
The rise of mobile gaming and live service games is also impacting the traditional gaming segment, resulting in reduced spending on consoles and PCs. Despite some standout titles like “Helldivers 2” drawing players currently, it may take another year for the industry to stabilize.
The exact timeline for the industry’s recovery remains uncertain, with experts highlighting the challenges ahead. To stay informed on the latest financial and business news, readers are encouraged to subscribe to the Yahoo Finance Tech newsletter for updates on the gaming industry and more.
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