According to foreign media The Verge, the scope and scale of layoffs in the game industry in 2023 far exceed that of ordinary years, and according to incomplete unofficial data, more than 9,000 people have been affected by layoffs this year. This year is both a "big year for gaming" and a "miserable year for developers". * Believe that the reason behind this is that gaming companies that only focus on performance growth at any cost (including manpower).
*Lists the largest layoffs during the year:
In September, Epic Games announced that it would lay off 830 employees. The CEO issued a statement saying that the company had a problem of "making ends meet". Companies such as Superawesome and Bandcamp, which Epic acquired two years ago, were sold off again after announcing layoffs.
Embracer Group embarked on a large-scale restructuring program due to the collapse of a $2 billion investment deal. More than 900 employees were laid off, three studios were shut down, and many projects were axed.
Hasbro laid off more than 1,000 employees, including most of the people who worked with Larian on Baldur's Gate 3.
EA laid off 6% of its workforce, affecting about 780 people. Not only that, but companies such as Bioware, Microsoft, Bungie, Naughty Dog, Ubisoft, Amazon, CD Projekt Red, Sega, Unity, and Activision Blizzard have all been affected by the layoffs.
*It is pointed out that Nintendo's management philosophy for employees is more worthy of learning than the methods adopted by the above-mentioned companies. In 2013, then-president Satoshi Iwata adopted a salary cut strategy in the face of poor sales of the Wii U to prevent the layoffs of developers. He once said: "If we reduce the number of employees for better short-term financial performance, employee morale will go down." "In the long run, Nintendo believes that putting people first is far more important than profit, which will give creators a better incentive to make good games.
That's not to say layoffs should never happen, but they shouldn't happen this year, the authors say. These multimillion-dollar executives should prioritize mitigation measures such as pay cuts and the elimination of bonuses before laying off employees.