Introduction
I’ve been in the game industry for years now, and 2024 has easily been one of the toughest years I’ve seen. Layoffs, shifting business models, AI disruptions—it feels like we’re constantly in survival mode. Recently, I caught up with my old friend Jordan Smith to talk about where things stand and what the future looks like for game developers like us.
Jordan and I go way back, so this wasn’t just a formal industry discussion. It was two friends trying to make sense of what’s happening, looking at how things have changed, and figuring out whether there’s still a future for us in an industry that seems to be pushing people out.
Mass Layoffs: A Brutal Year for Developers
One of the biggest topics on our minds was the wave of layoffs that hit the industry in 2024. Everyone knows someone who lost their job—hell, a lot of us have been laid off ourselves.
Jordan had seen this instability firsthand and had even relocated years ago, knowing the job market in gaming was unpredictable.
Jordan: “You know, the industry was in flux. Still is, right? So I remember talking to my wife way back then, and I said, ‘Hey, let’s go to Seattle.’ And luckily, we didn’t go to Seattle.”
He ended up on the East Coast, where job opportunities were more stable at the time. But even that security was short-lived.
Jordan: “We ended up going here to the East Coast, and there was a studio called Hi-Rez Studios. And we were doing… they were doing GaaS (Games as a Service) games. And I felt like that was the next big thing in the industry at the time. So I was right. I was pretty fortunate. I had a good interview here. Met a lot of good people. Worked with some really cool people, man. Now they’re all in different studios. Hi-Rez had a layoff. I wasn’t there when it happened—I left back in 2020—but still, it hit a lot of people hard.”
That last sentence says it all: no matter where you go, layoffs seem inevitable in this industry. In just the first half of 2024, over 10,000 game developers lost their jobs, according to GamesIndustry.biz (2024). Even companies that seemed too big to fail, like Microsoft, EA, and Unity, have cut hundreds or even thousands of employees.
Studios over-hired during the pandemic boom, assuming player engagement would stay high, but now, as game sales normalize, they’re slashing costs—and people are paying the price.
AI and Automation: The Silent Threat
Jordan and I also talked about how technology is reshaping the industry, and not necessarily for the better. AI is the latest disruption, and while it has potential, it’s also a major threat to creative jobs.
Jordan: “I feel like when we started, there was more appreciation for craftsmanship. But now, it’s about speed. AI is fast. It does the job quickly. And, you know, execs don’t care how we feel about it.”
He’s not wrong. A 2024 MIT Technology Review report found that 30% of studios are actively incorporating AI-driven tools to replace traditional developer roles, from procedural level design to automated asset creation. What was once an assistant tool is now becoming a replacement for actual workers.
Jordan: “Like, remember when outsourcing was the biggest fear? Everyone was saying, ‘Oh, jobs are going to China, to India.’ But now? The job is just… gone. No one’s getting it. AI is doing it.”
Developers are stuck between adapting to AI or resisting it, but either way, its presence in game development is only going to grow. The question is, will studios use it to enhance human creativity or to cut jobs and maximize profits?
The Shift to Live-Service Games and the Death of Traditional Releases
Beyond layoffs and AI, another trend we couldn’t ignore was how live-service games have completely changed the business.
Jordan: “We all saw it happening, right? At Hi-Rez, it was all about live-service. And now? Every single AAA studio is trying to copy that model. Even single-player franchises are getting forced into live-service mechanics.”
He’s right. According to IGN (2024), 70% of new AAA releases now have some form of live-service monetization—whether it’s battle passes, microtransactions, or subscription-based expansions. Studios no longer want to sell a game once; they want to keep players spending money indefinitely.
Jordan: “It’s like, do we even make ‘games’ anymore? Or are we just making content platforms?”
Games that used to have a clear beginning and end are now designed to never finish. It’s why franchises like Assassin’s Creed, Call of Duty, and even Diablo have shifted away from standalone experiences into endless online updates.
And while players have pushed back—especially after the monetization fiasco with Overwatch 2 and Diablo IV—it’s clear that studios aren’t going to stop chasing this business model anytime soon.
AR and VR: The Next Frontier?
Despite all the challenges, Jordan was still optimistic about the next phase of gaming, particularly AR (Augmented Reality) and VR (Virtual Reality).
Jordan: “I think people don’t like VR right now, but the tech is going to be there pretty soon. If you follow the stock market, look at what NVIDIA is doing, what Intel is doing, what AMD is doing—these chips are gonna get smaller and smaller. My wife has a pair of RAYBAN glasses that are, like… holy fuck, the output is 4K.”
He believes that with advancements in hardware, AR/VR gaming will finally become more accessible to the mass market.
Jordan: “I’ve always wanted to get into VR. I had an interview at Meta, and you know, I didn’t get the job. But I still think it’s the future. We’re not there yet, but once the tech catches up, it’s gonna change everything.”
His enthusiasm for AR/VR reminded me of how people talked about online gaming back in the early 2000s—skeptical at first, but then it became the norm. With Apple Vision Pro, Meta Quest 3, and PlayStation VR 2 all launching new iterations, it’s clear that companies are still betting on immersive gaming being the next big thing.
If Jordan is right, maybe VR isn’t just another trend—it could be the next real evolution of gaming.
Conclusion: “Just Keep at It”
As we wrapped up, I told Jordan I was still pushing forward in my career, despite everything.
Me: “Yeah, just trying to keep at it for sure.”
That’s all we can do—keep going, keep adapting, and hope things get better.
The game industry is in a rough place, but as long as there are passionate developers, there’s still hope for the future.
These sources offer detailed insights into the various challenges and developments within the gaming industry as discussed in the article.
- GamesIndustry.biz: For information on the impact of layoffs in the gaming industry over the past two years, you can refer to their article:
GamesIndustry.biz - MIT Technology Review: For insights into how AI is influencing video game development, see their piece:
MIT Technology Review - Newzoo: For data on games market trends and forecasts, including the rise in indie game sales, consult their reports:
Newzoo - Take This: For discussions on mental health and the effects of layoffs in the gaming industry, their article provides valuable information:
Take This
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