As a result of these economic pressures, the industry is projected to see over 30,000 job losses between 2022 and 2024, with 13,000 cuts anticipated in 2024 alone, following 8,500 job losses in 2022 and 10,500 in 2023.

The games industry is currently grappling with significant economic challenges, including widespread layoffs, studio closures, and the cancellation of numerous projects, a trend that has persisted for over a year.

Among the companies affected, Don't Nod announced on October 16, 2023, that it may cut up to 69 jobs from its workforce of around 340 due to disappointing financial performance.

In a stark example of the industry's struggles, Studio Black Flag, known for developing 'Orphan Age,' was shut down by the French government after losing its publisher deal.

The phenomenon dubbed 'Indiepocalypse' is also evident, as many small independent studios are shutting down, highlighting the difficulties faced by this segment of the industry.

Italic Pig, the studio behind 'Paleo Pines,' has reported challenges in finding a production partner, indicating a drying up of publishing and investment opportunities in the indie gaming scene.

In response to the current climate, major franchises like 'Assassin’s Creed' and 'Call of Duty' are focusing on their most profitable titles to mitigate risk, although this strategy carries the inherent danger of potential launch failures.

Amid these challenges, Ubisoft has faced stock market difficulties due to disappointing sales of 'Star Wars Outlaw' and has postponed the release of its next major title, 'Assassin’s Creed,' to February 2025.

Additionally, several games are becoming available on subscription services like Xbox Game Pass and PlayStation Plus, including popular titles like 'South Park: The Fractured but Whole' and 'Dead Island 2.'

This downturn follows a cyclical pattern in the video game sector, which is heavily influenced by new product launches and technological advancements, with a notable slowdown occurring after a surge during the COVID-19 lockdowns.

Similarly, Bandai Namco is undergoing significant layoffs, impacting between 100 to 200 employees.

Despite the turmoil, new game releases continue, with titles such as 'Super Mario Party Jamboree,' 'MechWarrior 5: Clans,' and 'A Quiet Place: The Road Ahead' set to debut this week.