Video Games Year in Review: Part 1, 2024

The first half of 2024 was defined by significant instability within the global video games industry, characterized primarily by widespread workforce reductions and corporate restructuring. Following the post-pandemic economic downturn, major entities including Activision Blizzard, Unity, Riot, and Twitch collectively laid off over 3,500 employees in January alone. This trend of contraction persisted throughout the first six months of the year, with further job losses reported at Sony Interactive Entertainment, Electronic Arts, and various other studios, ultimately pushing total industry layoffs beyond the 10,000-person threshold seen in 2023.

Beyond labor market volatility, the industry experienced notable shifts in corporate strategy and regulatory oversight. Embracer Group announced a major split into three separate business units due to financial pressures, while IGN’s acquisition of the Gamer Network portfolio signaled ongoing consolidation within games media. Regulatory developments also played a critical role, as European authorities utilized the Digital Markets Act to compel Apple to allow rival app stores, and Chinese regulators withdrew proposed spending caps that had previously unsettled domestic market giants like Tencent and NetEase.

Despite the prevailing atmosphere of austerity, specific segments of the industry demonstrated resilience and growth. The viral success of Palworld, which sold over 7 million copies in its first week, and the strong performance of Helldivers 2 highlighted the continued potential for breakout hits. Furthermore, strategic partnerships—such as the $1.5 billion investment between Disney and Epic Games—indicated a long-term focus on persistent digital environments. These developments, alongside the critical success of media adaptations like the Fallout television series, provided a counter-narrative to the broader theme of industry-wide retrenchment during the first half of the year.