Nearly Every Video Game Studio Feels the Impact
Both the rise of generative AI tools and industry-wide layoffs have had a profound effect on video game studios. Many gamers are vocal in their opposition to both crypto gaming and AI. McKinsey declared 2023 as the “breakout year” for generative AI, while the gaming industry experienced approximately 9,000 layoffs. While it’s unclear how many of these layoffs are directly linked to AI adoption, some industry professionals are concerned about the future.
Staggering Layoffs
Farhan Noor, a game developer, has been tracking this year’s industry layoffs and created a chart showcasing the largest reductions by firm and affected game studios. Major companies like Epic Games, Unity, Riot Games, Nexon, Gameloft, Electronic Arts, Amazon Games, Ubisoft, and Activision Blizzard have all made cuts in 2023. Unity had the highest number of layoffs by headcount at 1,165.
Growing Concerns and Backlash
Industry professionals and gamers alike have expressed their concerns about the rise of generative AI in gaming. Microsoft’s AI toolkit announcement in November drew criticism from many within the gaming industry who viewed it as disrespectful and dangerous to human creativity. Some fear that generative AI will replace human jobs in game development.
Generative AI’s Meteoric Rise
A report by Bain & Company predicted that generative AI will be used over 50% of the time in game development within
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