2024 GDC Survey Highlights Industry Struggles: 41% of Developers Impacted by Layoffs

In 2024, 41% of developers reported being affected by layoffs, according to the Game Developers Conference (GDC) State of Games Industry survey. Among the hardest-hit roles were game narrative developers, with 19% experiencing redundancy.

The annual GDC survey, conducted in collaboration with market intelligence firm Omdia and Game Developer, gathered insights from over 3,000 developers on layoffs, working conditions, platform preferences, and more. The findings reveal a significant increase in layoffs compared to 2023, where 35% of developers reported being affected.

Developers cited restructuring, declining revenues, and shifting market strategies as key reasons for job losses. “Covid-era overexpansion, rising production costs, and mismanagement” were frequently mentioned as contributing factors. Despite the challenges, unionization discussions gained traction, with 20% of respondents reporting conversations about union support within the past year.

The role most impacted by layoffs was game narrative, with 19% of developers in this field losing their jobs. Ironically, the sector showed year-on-year growth, increasing from 14% of respondents in 2023 to 17% in 2024. 

AAA studios also saw a decline in their workforce, with developers working at large studios (250+ employees) dropping from 18% to 15%. Meanwhile, smaller indie studios, where over half of developers are part of teams with fewer than 20 members, continued to hold their ground.

The survey highlighted shifts in working hours, with fewer developers (57%) working 40 hours or less per week compared to 64% in 2023, while 13% of respondents reported working more than 51 hours weekly, with self-imposed pressure cited as a significant factor by two-thirds of those surveyed.

PC remained the dominant platform in 2024, with 80% of developers creating projects for it, a notable increase from 66% in 2023. The rise in popularity of the Steam Deck likely contributed to this growth, with nearly half of respondents expressing interest in the platform.

Mobile development also saw a resurgence, with 29% of developers working on games for Android and iOS – the first increase since 2020. Meanwhile, interest in web browser games jumped to 16%, up from 9% last year.

As for consoles, PlayStation 5 came out on top, with 37% of developers focusing on projects on the PS5 or PS5 Pro compared to 33% for the Xbox Series X|S. However, Xbox outperformed PlayStation in cloud services. 13% of respondents are making games for Xbox Game Pass, with 9% focusing on PS Plus (Extra or Premium).

The live-service model sparked mixed reactions among developers. While some praised its potential for community building and sustained player engagement, others expressed concerns about market oversaturation, creative stagnation, and the risk of developer burnout. GDC highlighted the challenges of maintaining a sustainable player base in this genre, pointing to the shutdown of notable titles like Anthem and Redfall.

In 2024, the video game industry experienced significant layoffs, with estimates of about 14,600 employees.