Video Game Industry Cuts: One-Third of Workforce Laid Off in Two Years

The gaming industry in the U.S. is facing significant challenges, with a recent survey revealing that one-third of video game workers have been laid off in the past two years. This data comes from the 2026 State of the Game Industry Report released by the organizers of the Game Developers Conference (GDC).

Key Findings from the Report

The report included input from over 2,300 professionals across various sectors within the gaming industry, including developers, marketers, and executives. Here are some notable statistics:

• 33% of U.S. respondents experienced layoffs in the last two years.
• This percentage drops slightly to 28% on a global scale.
• 50% of respondents indicated their current or previous employers conducted layoffs within the past year.

Impact on Different Studio Types

The report highlighted disparities between different types of game studios. Among AAA studios, approximately two-thirds of employees reported layoffs, compared to one-third from indie studios. This trend emphasizes the precarious nature of employment in gaming.

Unionization Support and Workers’ Sentiment

Another significant finding from the survey was regarding unionization. An impressive 82% of U.S.-based respondents supported union efforts within the industry. Support varied among different demographics:

• 87% of those earning under $200,000 per year.
• 88% of individuals who were laid off in the past two years.
• 86% of workers aged under 45.
• No respondents aged 18-24 opposed unionization.

Challenges for Future Generations

The report also included perspectives from game educators and students to better understand the challenges awaiting the next generation of game developers. These insights are critical as they highlight future industry trends and needs.

Upcoming Events and Future Outlook

The release of the State of the Game Industry report coincides with the upcoming GDC Festival of Gaming, scheduled for March 9-13 in San Francisco. The event has been revamped to encompass a broader spectrum of the gaming industry and will feature enhanced programming tracks.

In conclusion, as the video game industry faces widespread layoffs, the push for unionization and support for the workforce is becoming increasingly important. The newly released report aims to address these key issues while providing insights into the industry’s future direction.