The games industry endured yet another challenging year in 2025, with layoffs remaining alarmingly high even as they ticked down a bit – a sobering signal that the fun-filled world of video games is grappling with deep-seated instability. But here's where it gets controversial: while the numbers improved slightly, the geographic shift of jobs to emerging markets might be reshaping the industry in ways that leave longtime players wondering if their favorite hubs are being left behind. And this is the part most people miss – the ripple effects on salaries and innovation, which could redefine what 'gaming' means for the next generation.
Despite a roughly one-third drop in layoffs compared to the previous year, the conditions in the games sector stayed tough, with studios across the US and Western Europe potentially feeling the pinch from opportunities migrating to up-and-coming regions. Layoffs hit a total of 9,175 in 2025, according to Amir Satvat, the business development director at Tencent Games who runs a vital resource for job seekers (amirsatvat.com). For context, beginners might not realize that tracking layoffs in this industry is tricky because not all are publicly announced, so Satvat goes the extra mile by tapping into his community networks to uncover unreported figures and estimate the real impact when companies keep quiet about the numbers involved. His January forecast was 9,769, but the final tally came in just under that, a far cry from the whopping 15,631 in 2024, though still above the 8,500 back in 2022 when this ongoing crisis really ignited.
Looking ahead, Satvat anticipates another 7,500 layoffs in 2026, suggesting a gradual path to recovery. However, he notes that open positions in North America and Western Europe are likely to dwindle further, which could mean fewer chances for local talent to thrive. To illustrate, earlier this year, Satvat pointed out to The Games Business that over 70% – sometimes up to 75% – of layoffs have struck North America, especially hard-hitting for AAA studios with more than half occurring in California alone. This regional disparity highlights how economic pressures are concentrating cuts in wealthier areas, potentially stifling creativity where big-budget games are born.
A survey from October revealed that over 26% of European game professionals lost their jobs in the past year, and median salaries plummeted compared to 2024. Tanja Loktionova, founder of Values Value and co-founder of InGame Job, explained that programmer pay, particularly for those skilled in Unity, has nearly halved due to a lack of openings. 'There have been a lot of layoffs and very few new opportunities,' she said, painting a picture of an oversaturated market where skilled developers are scrambling to stay afloat.
Satvat predicts that while job opportunities will shrink in Western Europe and North America, they'll expand in Latin America, Eastern Europe, and Asia – a trend echoed by industry insiders. For example, Lirui Ding from Transcend Fund, speaking at this year's GamesIndustry.biz Investment Panel, observed a significant flow of investment from the US and Europe to places like China, Turkey, and Vietnam. 'We're really seeing a lot of money actually going from the US and Europe to other emerging markets,' he remarked, underscoring how global capital is chasing cost efficiencies and fresh talent pools.
Chris Petrovic, chief business officer and board chairman at FunPlus, similarly forecasted in a December GamesIndustry.biz piece that the industry will expand, but in new global hotspots. 'Previously, we talked a lot about gaming innovation, creativity, and commercial success coming from places like the United States, Canada, Germany, and Finland,' he noted, 'and now we are increasingly talking about emerging game dev hubs like China, Turkey, Israel, and Vietnam.' This shift could mean exciting new perspectives in games, but it also raises questions about whether established regions are losing their competitive edge.
Diving into the specifics of 2025's layoffs, the year was marked by several studio shutdowns, including Toadman Interactive, Freejam, nDreams Studio Orbital and nDreams Studio, Thunderful-owned Studio Fizbin, Spectre Divide developer Mountaintop Studios, Zynga-owned Echtra Games, Dundee-based Cobra Mobile, Microsoft-owned The Initiative, Avalanche Studios Group's Liverpool studio, Ubisoft Leamington, T-Minus Zero Entertainment, Fantastic Pixel Castle, and Bad Brain Game Studios. Reports also suggested that Ballistic Moon, the UK studio behind the Until Dawn remake, was effectively shuttered after nearly all staff were let go, while Aheartfulofgames, creators of Teenage Mutant Ninja Turtles: Mutants Unleashed, faced closure threats after owner Outright Games aimed to redundancies everyone. Additionally, UK studios Three Fields Entertainment and Splash Damage initiated consultations affecting all employees.
Beyond closures, dozens of studios trimmed their teams, such as Just Dance VR developer Soul Assembly (cutting 15% of its workforce), Poland-based Huuuge Games (reducing by 29%), MechWarrior 5: Clans maker Piranha Games, Bandai Namco-owned Reflector, Vancouver-based Phoenix Labs, Storm Lancers developer ProbablyMonsters, Lost Skies creator Bossa Games, Tony Hawk's Pro Skater 3 + 4 studio Iron Galaxy (laying off 66% to ensure survival), Smite developer Hi-Rez Studios, Crysis maker Crytek (cutting 15%, delaying Crysis 4), Funko Fusion developer 10:10, Australian VR studio Toast Interactive (majority cuts and office closure), Myst creator Cyan Worlds (half the team), Australia's top studio PlaySide Studios (restructure and cuts), AppLovin subsidiary Machine Zone (97 job losses including CEO), Devolver Digital-owned Nerial (40% staff reduction), Toronto-based Mighty Yell, Niantic spin-off Niantic Spatial (small number), Polish studio People Can Fly (project suspensions and layoffs), mobile giant Playtika (up to 160 jobs in Israel and Poland), Runescape maker Jagex (unspecified non-dev roles, shutting Project Zanaris), Scottish Outplay Entertainment (15% cut), Splitgate 2 developer 1047 Games (layoffs in June and July, including sending the game back to beta), MindsEye creator Build A Rocket Boy (around 300 at risk), Lost Records developer Don't Nod (significant chunk), Stockholm-based Toca Boca, Dark Pictures and The Quarry maker Supermassive Games (36 staff, delaying Directive 8020), mobile publisher Sandsoft (shutting two studios, 65 jobs in Riyadh and Barcelona), Tron: Catalyst developer Bithell Games (majority full-time redundancies), social platform Rec Room (half the team despite a $3.5bn valuation), California-based Dreamhaven, Payday creator Starbreeze Entertainment (canceling Project Baxter, ~44 affected), Hyper Light Breaker maker Heart Machine (second round), Angry Birds studio Rovio (36 due to underperformance of Dream Blast), Finland-based Redhill Games (restructuring), UK publisher Outright Games (27 staff), and King of Meat developer Glowmade.
Turning to the major players, Tencent Games oversaw several cuts and divestments at its European operations. In February, Tencent-owned Sumo Group announced a refocus on partner development services, impacting studios and staff. They sold publisher Secret Mode in March, and Sumo studio The Chinese Room handled small layoffs in June before gaining independence. Splash Damage, acquired by Tencent in 2020, flagged job risks in January after canceling Transformers: Reactivate, then was bought by private investors in September and entered full consultation in November. Funcom, Tencent-owned and behind Dune: Awakening, made cuts in October as part of restructuring. Sharkmob, working on Exoborne, cut jobs at its Malmo studio in November.
NetEase also faced turmoil: Jar of Sparks sought a new publisher in January after funding withdrawal, Liquid Swords (founded by Avalanche co-founder Christofer Sundberg) cut jobs in February, a US Marvel Rivals support studio laid off staff hours before announcing 40 million players, and they shuttered T-Minus Zero Entertainment, divested Fantastic Pixel Castle (which closed), and exited Bad Brain Game Studios (launched in 2023, closed after no new publisher).
Microsoft ramped up cuts: small layoffs in January, 3% overall in May, and a massive 9,000 in July (4% of workforce), shaking up games division with closures like The Initiative and impacts on King, Blizzard, Turn 10, Raven Software, and ZeniMax Online Studios. Sony laid off at PlayStation Visual Arts and PS Studios Malaysia, and made redundancies at Bend Studio (Days Gone creators). Unity cut jobs in February (after 1,800 in 2024), Amazon shed 14,000 in October (halting New World MMO), Intel in April and July, Meta 5% in January plus Reality Labs cuts in April (with potential 30% budget slash in 2026), Netflix-owned Night School Studio in February, Krafton-owned Striking Distance Studios (The Callisto Protocol) in March, and Square Enix with a November restructuring pulling from overseas, risking over 100 jobs.
Embracer-owned Crystal Dynamics cut staff in March, August, and November (totaling multiple rounds), yet unveiled Tomb Raider: Catalyst in December (published by Amazon). Eidos Montreal (Marvel's Guardians of the Galaxy) faced alleged layoffs in December after March cuts. Ubisoft made waves with January redundancies at Düsseldorf, Stockholm, Reflections, and Leamington closure; July cuts at Red Storm (19); September publishing team layoffs (9); and October proposals at RedLynx (up to 60) plus voluntary redundancies at Massive Entertainment.
EA kicked off with Respawn canceling two projects and cutting ~100 from Apex Legends and Star Wars: Jedi teams, followed by 200 more in Experiences, and pausing WRC development, leading to Codemasters layoffs. Take-Two Interactive saw 2K reduce BioShock 4 team size and cut Firaxis headcount for Civilization and XCOM.
But here's the truly divisive part: the Independent Workers' Union of Great Britain accused Take-Two-owned Rockstar Games of union busting after dismissing 31 employees attempting to organize at the end of October. This sparked protests outside offices and a letter signed by 220 Rockstar North staff demanding reinstatement. Rockstar denies the claims, stating the firings were for gross misconduct involving confidential info shared publicly. UK PM Keir Starmer called it 'deeply concerning,' prompting an investigation. Is this a genuine attack on workers' rights, or a necessary enforcement of company policies? The debate rages on, with some seeing it as a sign of industry resistance to change, while others argue it's about maintaining security in a creative field.
All in all, 2025's layoffs paint a picture of an industry in flux, with traditional strongholds suffering while new regions rise. But is this geographical shift a natural evolution of globalization, or a symptom of exploitative practices in games development? And what about the ethical dilemmas, like the Rockstar saga – does union organizing threaten innovation, or is it essential for fair treatment? Do you agree that emerging markets will dominate, or should we prioritize reviving jobs in the West? Share your thoughts – agreement or disagreement – in the comments below!
