December 31st 2023.
2023 should have been one of the best years ever for video games, with an unusually large number of high quality games launching and the current generation finally getting into gear. But behind the scenes, the reality makes it hard to celebrate. As the year wore on, an increasing number of layoffs at Microsoft studios, including 343 Industries and Bethesda, as well as almost every Western publisher and developer, from Fortnite maker Epic Games to smaller indie studios, were reported.
The reason for these layoffs is multifaceted. Companies had taken on too many staff during the inflated demand for games during the pandemic. Additionally, outside investors had become less interested in gaming since things have returned to normal. The easy access to investor money, at a time when interest rates were much lower than they are now, helped to fuel the rapid consolidation of the last few years.
One of the most disastrous effects of this consolidation has been the faceless conglomerate Embracer Group, which appeared out of nowhere a few years ago and started snapping up medium-sized developers, like a greedy child at a pick 'n' mix. When an outside investment from Saudi Arabia fell through, they suddenly started gutting developers and shutting others down. As a result, beloved studios like Saints Row developer Volition and TimeSplitters maker Free Radical Design are gone forever.
It's estimated that close to 10,000 video game jobs have been lost this year. The week before Christmas, the horrendous cyberattack at Insomniac Games, which spilt their secrets across the internet, was a stark reminder of the reality of the industry. As one developer from Riot Games tweeted: "Being a game dev in 2023 is waking up absolutely terrified of leaks, layoffs, malicious hacks, abuse, threats, etc. My heart goes out to those at Insomniac Games, all we want to do in this industry is make video games. I'm so tired and hope for safety to the devs affected."
The truth is that no matter how talented and influential the newly acquired developers are, they are still at the mercy of the execs. Worrying about having your job taken away by AI is a new threat this year, but it’s never the execs that anyone ever thinks of replacing. Microsoft and Sony have both failed to give the industry the leadership it deserves.
Despite all the money they've spent, Microsoft seem to be in no better position now than during the Xbox One generation. Sony's attitude this year has been bizarre, with no major announcements and a seemingly pathological dislike of discussing its plans in public.
Yes, there have been many great games released in 2023, but the overall health of the industry has never seemed worse in modern times. Most creative industries are a case of lions being led by donkeys but never has gaming felt so leaderless, rudderless, and vulnerable as it does now. It's a heartbreaking situation, and one that deserves more attention and scrutiny.
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