The gaming industry has faced significant layoffs in 2023 and 2024, with over 18,000 jobs lost during this period. Major companies and smaller studios alike have been affected, with layoffs occurring for a variety of reasons, including the shifting consumer focus towards mobile and live service games, rising development costs, and a post-pandemic slowdown in revenue growth. Notable companies like Sony, Warner Bros. Games, Epic Games, and Bungie have seen layoffs and studio closures, impacting many developers and other gaming professionals​.

In 2024 alone, companies like Microsoft, Riot Games, Twitch, and Unity have announced substantial job cuts. Microsoft cut 1,900 workers in its gaming division, Riot Games laid off 530 employees, Twitch let go of over 500 staff, and Unity announced layoffs affecting 1,800 employees​ (Fast Company)​. Other affected companies include EA Cologne, Chief Rebel, Eidos Montreal, and Sega of America, highlighting the widespread nature of the job cuts across different segments of the industry.

The trend represents a significant shift from the pandemic-driven boom when the industry saw a surge in revenue and employment. However, as the immediate effects of the pandemic waned, the industry has had to adjust to a new normal, leading to these unfortunate job losses​​.