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When we look back on 2023, it’s clear that it was a great year for games. In fact, I would argue that 2023 has been the best year in gaming history. Well, unfortunately, that’s before you look at the extreme number of industry layoffs. When we hear numbers like 6% of someone’s workforce or 1,500 layoffs, it’s easy to look at that and forget the people behind those numbers.
It’s heartbreaking to see so many people suddenly out of work in their fields of expertise while major companies boom with resounding success. In a year that has gone gangbusters with highly rated games and huge sales numbers, it also feels pretty confusing. The last thing a worker would expect is to be laid off in the middle of a successful run. It also creates a culture of fear. If you’re one of the people who just witnessed a long-time coworker let go in the middle of one of gaming’s biggest years, you’d have to wonder if you’re next. After all, who’s safe aside from the people at the very top?
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Breaking The Pandemic Bubble
The sheer number of layoffs can be a little hard to imagine. It’s also hard to pin down. Some companies don’t report their layoffs, or at least the quantity of them, so settling on a final tally is hard to do.The LA Timesestimates that about 6,500 layoffs have taken place in 2023. The siteVideogamelayoffsestimates that more than 9,000 people have been laid off this year. Both of those are staggering numbers with individuals and often families behind each one.
The general consensus seems to be that both the extraordinary game lineup and widespread layoffs are both a result of the pandemic. During the pandemic, demand for entertainment was at an all-time high. Gaming was there to fill the void. One can hardly forget the moment Animal Crossing had during lockdown. People everywhere were flocking to one another’s islands to sell their turnips. Not to mention that a whole talkshow,Animal Talking, was hosted by Gary Whitta and had guests like Danny Trejo and Elijah Wood. It was a big moment for gaming, and investors saw the opportunity. Companies took the opportunity to expand their workforce.
People work their whole lives and face tremendous amounts of competition to get their shot in the games industry.
After years of delays and setbacks, 2023 arrived with a bang. Suddenly, all of these games held back by the pandemic and shifting work environments were done cooking. However, with the completion of these gaming titans also came dreaded downsizing. From the outside looking in, it doesn’t make much sense. Each one of these games, likeThe Legend of Zelda: Tears of the Kingdom,Marvel’s Spider-Man 2,Fortnite, and more are experiencing huge moments and big sales. That’s just to name a few. So, why aren’t the workers feeling the benefits of these successes?
Some people blame the lack of unionization, claiming unions could provide some security to workers experiencing these hardships. A union may not be able to prevent layoffs, but it can negotiate severance packages on employees' behalf. They can also help with job placement once someone has been let go.Polygon has reportedthat video game unions are on the rise amid the layoffs, which is music to many ears.
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Nintendo has been seemingly immune from the landslide of layoffs, but that’s likely very intentional.In a 2013 investor meeting, Satoru Iwata said “If we reduce the number of employees for better short-term financial results, however, employee morale will decrease, and I sincerely doubt employees who fear that they may be laid off will be able to develop software titles that could impress people around the world.” In 2023, it would appear this quote has never been more relevant. While Mr. Iwata has passed, it’s likely Nintendo has seen fit to follow his guidance in many respects.
The Media Plays An Important Role
Media around the industry has struggled with their approach to the situation. It’s understandable. There’s almost a cognitive dissonance that comes with acknowledging this was the best year for games but the worst year for gaming. After all, it’s natural to think that incredible sales would lead to expansion instead of reduction. While many gaming outlets have reported on this issue several times throughout the year, one platform has been notably absent.
Geoff Keighley, whose work I truly admire, recognized the power of his Game Awards platform during Activision’s 2021 harassment cases.
It was a slam dunk for Keighley to make that statement and to use his very large platform as a call for change. In 2023, when the industry could have used his influence once again, Keighley was strangely silent. His unwillingness to address the issue coincided with what Variety reported to bea record-breaking 118 million livestreams of The Game Awards. The night of celebration went off beautifully, constantly recalling the many successes of the year without ever acknowledging the hardships faced by those who had been let down.
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Fortunately, social media around The Game Awards wasn’t so silent. Voices from within the industry, like Ashly Burch, were quick to make those struggling feel seen and appreciated.
None of this is to say that Geoff Keighley is at fault for any of the losses within the industry. He isn’t responsible for any of the layoffs, obviously. However, it’s worth noting that one of gaming’s biggest platforms was more than happy to sweep a year’s worth of hardship under the rug in the name of celebration. While Keighley doesn’t owe his platform to any particular cause, and it isn’t a place for journalism, he himself has put the platform forward as a messenger for change.
The Industry Needs More Stability
The gaming industry can be a volatile one, and that’s nothing new. It’s also a booming industry, as seen by 2023’s lineup of hit after hit after hit. While it’s important to acknowledge that gaming is a business, it’s also important to realize that these layoffs impact individual workers and their families. It can be hard to imagine 9,000 people losing their jobs, wondering where their next paycheck will come from and how they will support themselves and their families. Every number has a consequence that ripples out beyond what we can imagine.
If you’re one of the people who just witnessed a long-time coworker let go in the middle of one of gaming’s biggest years, you’d have to wonder if you’re next.
To see these layoffs within the industry is doubly sad because it’s an industry many work very hard to get into. People work their whole lives and face tremendous amounts of competition to get their shot in the games industry. It’s rarely just a job; it’s a passion. It’s why many people are willing to work long hours under poor pay and conditions just to follow their dream. To have that stripped away is tragic and haunting. Furthermore, there just aren’t enough opportunities to absorb the many people looking for work within the industry right now.
I’m not writing this because there’s an easy solution to the problem. Even if there is, I’m likely not smart enough to figure it out. I’m writing this because awareness can become power. As vapid as social media can be, it can also be a place for the consumer to directly voice their opinions to companies.
If you care about this issue, then let your voice be heard. Spread around the many articles being written about it. Repost messages from those who have been laid off and are struggling to make ends meet. Boost the voice of anyone calling for unionization within the industry. Basically, become more than a consumer; become part of the conversation. Your voice is important, and it can help more people than you know.
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