State of the Game Industry: 2025

The 2025 State of the Game Industry analysis provides a comprehensive overview of current workforce trends, economic challenges, and technological shifts within the Western gaming sector. The findings highlight a period of significant instability, characterized by widespread layoffs and increased labor demands. Notably, the percentage of developers working 40 hours or less per week has declined from 64% to 57%, while those working over 51 hours per week have risen to 13%, marking the first increase in labor intensity since 2019.

Layoffs remain a primary concern, with only 43% of respondents reporting no staff reductions at their companies, down from 53% the previous year. Restructuring and revenue declines are cited as the leading drivers for these cuts, which have disproportionately affected narrative, managerial, and artistic roles. Despite this, there is growing interest in labor organization, with significant support for unions among younger developers and those in high-risk positions like quality assurance.

Technological adoption and platform preferences are also evolving. While 52% of developers utilize generative AI, sentiment toward the technology has soured, with 30% of respondents now viewing its impact as negative compared to 18% in the prior year. Platform development is shifting toward PC, which now accounts for 80% of development efforts, alongside a resurgence in mobile development in regions like Brazil, the Middle East, and Asia. Web-based game development has also reached its highest level since 2015, capturing 16% of the market.

The industry continues to rely heavily on self-funding, utilized by 56% of developers, while venture capital remains the least favored financing method due to high failure rates. Furthermore, there is a notable trend toward transmedia expansion, with one-third of major AAA studios actively working to adapt their intellectual properties into film or television formats.