Devs weigh in on layoffs, AI, and more

The last 12 months have seen their share of opportunity and heartbreak for game developers. Industry layoffs have continued, working hours are rising, and investment opportunities are shrinking. But the industry is resilient, as are its developers. The 2025 State of the Game Industry report brings these issues, and how they’re impacting the game community, into focus.

The Game Developers Conference has released the results of the 13th annual State of the Game Industry survey, revealing trends and insights in the game industry ahead of GDC 2025, which will be held at San Francisco’s Moscone Convention Center from March 17-21, 2025.

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We surveyed over 3,000 game developers and industry professionals this year (with a ±2% MoE), working with our partners at Omdia and Game Developer to analyze the survey data. We found that more studios adopt Generative AI, even though it’s increasingly unpopular among developers. Layoffs have continued, to the point where one in 10 developers have lost their jobs over the past year. Opinions on live-service games are mixed, and severe weather events like Hurricane Milton and the Southern California wildfires are drawing attention to the growing impact of climate disasters. 

Here are some of the highlights from the 2025 State of the Game Industry. 

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Layoffs Continue To Ripple Through The Industry

According to this year’s survey, 11% of developers reported being laid off in the past year. Roles in the Narrative field saw the most impact, with 19% of respondents. Business and Finance saw the least reported layoffs, impacting only 6% of respondents. 

41% have reported feeling the impact of these layoffs, with 29% observing their direct colleagues being let go and 18% witnessing developers on other teams being let go. 4% reported being laid off due to their studios being closed down.

When asked about what reason developers were given for these layoffs, 22% were told it was due to restructuring, 18% cited declining revenues and 15% were due to market or industry shifts. Interestingly, 19% were not given a reason for the layoffs they observed.

Developers Are Ever Hesitant About Generative AI

30% of respondents reported that they believe that generative AI is having a negative impact on the games industry, which is a 12% increase from last year. Developers pointed to intellectual property theft, energy consumption, a decrease in quality from AI-generated content, potential biases within AI programs and regulation issues as the main factors behind their discontent with the technology.

More than half of developers surveyed (52%) work for companies that have implemented generative AI and one-third (36%) personally use them. Respondents within Business and Finance Roles in companies were most likely to use Artificial intelligence tools (51%), followed by Production and Team Leadership (41%) and Community, Marketing and PR (39%).

PC Game Development Skyrockets

Last year, 66% of developers reported that they were working on games for PC; this year, that number climbed up to 80%. While the reason for this is unclear, it could be at least partially attributed to the rising popularity for Valve’s Steam Deck. While the Steam Deck wasn’t specifically listed as an option for developers to list as a platform they’re developing games for, of the respondents who chose the ‘Other’ option, 44% of them wrote in Steam Deck as a platform they’re interested in.

Interestingly, web browser games are also climbing in popularity, as 16% of developers noted that they’re working on releases for web browsers (compared to 10% last year and 11% the year before). This marks the most interest game studios have in browser games across the past decade.

One-Third of AAA Devs Are Working On Live Service Games

One in every three AAA developers surveyed (33%) noted that they are working on a live-service title. Across the entire survey base, 16% are currently working on a live-service game, and while 13% noted they are interested in developing live service games, 41% expressed that they were not interested at all.

Developer opinions of the value of live service games largely vary. On the positive side, developers recognized the financial and community-building benefits of the strategy whereas those who expressed concern with declining player interest, creative stagnation, predatory practices, microtransactions and the risk of burnout.

One of the biggest concerns surrounding live-service gaming was market oversaturation, with many developers noting how hard it is to build a sustainable player base.

Most Games Are Financed Through Self-Funding

More than half (56%) of survey respondents reported that they have put their own money into funding the creation of their game. That’s nearly double the next most option of project-based or publishing deals, which 28% noted was where their funding had come from.

Those who reported that they had utilized self-funding appear to be a good option, as 89% of respondents listed it as being at least somewhat successful for them. Co-development contracts have observed the highest rate of satisfaction, with one-third (37%) calling the method “very successful.” Accelerators were seen as the least viable option, with 43% calling the option “not successful at all.” This was followed by Venture Capital at 32% and crowdfunding at 31%.

Climate Change Impacts A Notable Number of Developers

In 2024, the impacts of climate change continued to be felt across the game industry, with 16% of developers saying they or their company have been impacted by natural disasters. 76% said they haven’t been impacted whereas 8% opted for the didn’t know option.

When asked to specify what natural disasters they or their company faced, 73% of respondents referenced floods, hurricanes, storms and other water-related events. Other disasters referenced include extreme heat, wildfires, and earthquakes.

The full survey, which includes more insight into the game development community’s thoughts on these topics and a multitude of other facts and details, is available to download. 

View the Free Report

GDC returns this March 17-21, 2025, and our Early Rate is currently live (for a limited time)! For more information, be sure to visit our website and follow the #GDC2025 hashtag on social media. 

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