People laid off at gaming companies: Regular business day or trouble for the Gaming Industry?

People laid off at gaming companies: Regular business day or trouble for the Gaming Industry?

It isn't news anymore that gaming companies laying off people have been a prevalent source of news these past months.

Let's run the current line:

GOG lays off a dozen employees due to lack of sales and competition, reporting financial struggle.

EA lays off a quarter of their Australian Branch known for their mobile games. They likewise had financial struggles.

Activision Blizzard laying off nearly 1k employees despite achieving record results, cutting non-game-development branches, such as publishing and e-sports.

Valve laying off 13 employees expecting to cut off their VR division.

Telltale going completely bankrupt. Despite being popular, Telltale flew too close to the sun and burned them whole. 

Anthem flopped leaving Bioware in a tricky situation.


Without also mentioning the significant drops in stock:

 Stock  Change from 2018 High
 Electronic Arts  - 40.7%
 Activision Blizzard  - 35.8%
 Take-Two  - 18.1%

Reflected not only due to the general drop in stocks from various tech-related companies, but also do to the changes in the gaming industry.


The question arises. Could the gaming industry face a new crash?

Short Answer: Absolutely not.

Long Answer:

The gaming industry will only change and adapt, but will never crash as long as it has competition and demand for video games. It's reported that the video game industry is at an all time high in terms of profits and booming in popularity all over the world, invading mainstream media more often than ever.

Despite this, the main production of video games and companies also adapts with it. Many major titles are often funded by investors, which could heavily influence the development of the game from the publishers. It could mean that video games could face a similar fate as the long running Movie Industry: products made for investors, and not for fans.

Ever since the video game industry got really big, it also attracted various popular sources, such as celebrities, investors, business politicians and many more.


Is it a bad thing? Here's why it isn't. Despite gaming companies chasing the newest trend (Battle Royale) and employing superficial tactics of game development, making the surface pretty, and the inside shallow, games are still better than ever. Opportunities are more prevalent than they ever were, giving chances for independent developers to make their name known and creating great products of entertainment.

Take it as the Music Industry. People say music nowadays suck. Yet those who say that, don't bother to search deep down the industry besides skimming the surface. Same thing as gaming. The mainstream development of games means that very popular games are very popular because it appeals to the common denominator.


That's the fate all industries suffer once they become mainstream. People getting fired can be by many things. Big gaming publishers are too big for any danger of going broke, and they aren't Atari, betting everything they have on one game. It is a combination of many carefully made business practices that could be a positive, or in this case (people being laid off) a negative. It is only a result of the climate that changes, but not ending. 


DISCLAIMER: This is an educated opinion of someone who has been relatively informed about today's journalism, but do not think of it as gospel or fact. It was made from varying opinions and sources other than myself. 

Source: Original Article made by myself (Caecus est inamabilis sciurus)

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Replies 86




Sad news!

Have an awesome day! ;)


wait until AI makes the games. I see this as a sign of the times and a troubling one.



MaximumBunny edited

Companies took over the industry. They want movie productions and software development under a single roof. That means you have producers, shareholders, etc. to deal with before you even get to Joe Programmer/Artist's little contribution. Then you have development schedules where everyone wants above average wages for a duration of 5 years plus with no guarantees of product sales or interest. Of course people are going to get fired in that kind of setup. Then gamers get upset at the companies because they have no understanding of the business infrastructure. The moral is don't invest your entire hopes in being hired by EA/Blizzard/etc. if you're aspiring to be a game developer.


Its all effect of war and global crisis.




The gaming scene changes fast and those that do not adapt die.


so sad


Atari Shock 2.0 is coming, and it's imminent.

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What does it mean for the industry?

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