Why Are So Many Developers Losing Their Jobs in the Gaming Industry in 2022?
The gaming industry in 2022 has seen a record number of critically acclaimed games being released, making it an incredibly successful year for gamers all around the world. However, for those involved in creating these games, the reality has been quite different. It has been estimated that over 10,000 industry members have lost their jobs, which is shocking and has raised many questions about the future of the gaming industry.
Gaming Industry Layoffs: A Paradox
It is perplexing to understand why, in the year considered to be the best for gaming, the people responsible for bringing these games to life are facing unemployment on such a large scale. The prevailing idea is that the greater the number of games sold, the more jobs there should be for developers. Unfortunately, this has not been the case. The industry has seen numerous layoffs despite the success of many best-selling titles. This has led to widespread concern and speculation about the driving forces behind this paradox.
Executive Bonuses vs Employee Layoffs
One of the primary reasons for the ongoing layoffs in the gaming industry is the disproportionately large bonuses being granted to CEOs and other executives. Additionally, there has been a trend of overpromising sales goals to shareholders. When these expectations are not met, rather than implementing executive pay cuts in times of financial difficulty, companies have chosen to let go of their employees. This lack of concern for the workforce has raised serious ethical and moral questions about the values being prioritized within the industry.
Lessons from the Past: The Nintendo Approach
In contrast to the current situation, it is important to reflect on past examples that demonstrate a different, more considerate approach. For instance, when Nintendo experienced financial setbacks due to the underperformance of the Wii U, its executives chose to take pay cuts to maintain the stability of their workforce. This enabled other employees to retain their jobs and continue working on future projects. The ultimate success of the Nintendo Switch is a testament to the positive impact of this approach.
The Microsoft Acquisition Fallout
Somewhat shockingly, the year 2022 has already witnessed the loss of over 5,000 jobs within the gaming industry. Notably, Microsoft, following its acquisition of Activision Blizzard for a staggering $70 billion, has laid off almost 2,000 developers. These decisions have emerged at a time when Microsoft is the second company ever to reach a valuation exceeding $3 trillion. This demonstrates that even record-breaking profits have not shielded employees from being let go, despite their significant contributions.
The Deceptive Silence in Gaming Prices
This wave of layoffs in the gaming industry has sent ripples of worry and uncertainty, especially for those who continue to work tirelessly within the field. It poses a grave reminder of the importance of fair treatment and the careful consideration of employees, who are instrumental in the realization of successful games. As the industry navigates through these challenges, it is essential to address the silent yet significant increase in gaming prices, particularly in the form of “Deluxe Editions”.
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Written by Georgina Young on behalf of GLHF.