What's happening with the video game industry?

Pirate Gamer

The video game industry is going through massive changes — from record-breaking profits to studio shutdowns and massive layoffs. But what’s really happening behind the scenes? 🕹️  In this video, we explore the current state of gaming in 2025, analyzing how AI, rising development costs, subscription models, and player fatigue are reshaping the industry. From the collapse of major AAA studios to the rise of indie developers and AI-generated content, the gaming world is entering a new era of creativity… and chaos.  🎥 In this video you’ll learn:   Why so many studios are closing despite huge game sales  The role of AI in modern game development  How player expectations and budgets are changing  The truth behind subscription services like Xbox Game Pass & PlayStation Plus  What the future of the gaming industry might look like  Whether you’re a gamer, developer, or just curious about the state of gaming, this deep dive breaks down the economic, creative, and technological trends defining the future of video games.  👍 Like & Subscribe for more gaming analysis, industry breakdowns, and tech insights every week! 💬 Comment below: Do you think the gaming industry is evolving or collapsing?  #Hashtags #GamingIndustry #VideoGames2025 #GameDevelopment #AAAStudios #GamingNews #IndieGames #AIinGaming #GameDesign #VideoGameCrisis #FutureOfGaming #GamingTrends    SOCIAL MEDIA:  TikTok: https://www.tiktok.com/@pirate.gamer1 FaceBook: https://www.facebook.com/PirateGamerXD/ Instagram: https://www.instagram.com/pirate_gamerxd/ Ko-fi: https://ko-fi.com/pirategamer

Transcript

00:00The gaming world has generated billions in revenue in recent years, but the current reality is very different.

00:07Although global sales remained huge, Nuzu estimates approximately $184 billion in 2023, only 0.6% less than in 2022.

00:19The sector is experiencing a deep crisis.

00:22Since the beginning of 2023, and especially in 2024, there has been a historic wave of mass layoffs.

00:32Sources such as Obsidian Tracking documented approximately 14,600 job losses in 2024, exceeding the approximately 10,500 in 2024.

00:452023

00:45Even giant companies were not spared.

00:49Microsoft cut almost 3,000 jobs, Unity 1,500, Sony around 1,000, Electronic Arts around 700, and Take-Two another 600.

01:02In Spain, the CSIV video game union laments that

01:06Our main task is to provide support for all the layoffs that are taking place.

01:11In total, more than 15,000 developers are expected to lose their jobs between 2023 and 2024 worldwide.

01:20These cuts are due to several factors.

01:22There was a hiring boom during the pandemic, many studios opened new projects, and then the market correction came.

01:30As expert Antonio José Planel explains, the current model is not viable.

01:37Games with budgets of hundreds of millions were cancelled, titles are becoming increasingly expensive, and many as-a-service projects have not yielded the expected results.

01:49Merged or poorly managed companies, including failed investments in the metaverse or blockchain, are adjusting their workforces to lower costs.

01:58The result is that in 2024, the number of studio employees was much lower, even though the global industry nearly doubled its workforce after the pandemic.

02:09Journalist Matthew Ball agrees, in 2022 there were about 8,500 departures, in 2023 more than 10,500, and in 2024 more than 14,000, with 2025 continuing the trend, albeit at a slower pace.

02:28In the first half of 2024, there were almost 11,000 layoffs in the global industry, more than in all of 2023.

02:36By the end of 2024, large companies had cut tens of thousands of jobs.

02:42In the US and Europe, many AAA teams were decimated.

02:46The main reason is the post-bubble adjustment.

02:49With an excess of studies and games in development, only the most profitable products survive.

02:55The global economic slowdown is also forcing publishers to control expenses, reducing staff where they can.

03:04In addition, current high costs, AAA games exceeding $100 or $200 million, create risk.

03:12If a title fails, the financial hole forces staff cuts.

03:16Affected professionals face unemployment in a difficult market.

03:21Many complained that their studios handled the cuts poorly.

03:25For example, nearly 100 employees of Build a Rocket Boy published an open letter in 2025 denouncing

03:32unbearable levels of overtime, crunch, and poor management following a mass layoff.

03:39Working conditions were already tough, and this instability causes anxiety.

03:44People who manage to find work often do so in smaller studios or switch industries.

03:50Several projects have been cancelled or delayed.

03:53Games that took decades to develop are sometimes left unfinished.

03:57A prime example is Concord, 2024.

04:00This shooter-as-a-service had an estimated budget of $400 million, but sold only 25,000 copies.

04:09Concord had to shut down its servers, and even the studio was dissolved.

04:13In Spain, the big studios are showing signs of uncertainty.

04:18According to El Pais, the national sector had a turnover of 2.4 billion euros in 2024,

04:25but also saw layoffs and closures of several local companies.

04:30Another major source of conflict is microtransactions and payment systems within games.

04:37It is increasingly common to purchase items or advantages within games using real money.

04:43This generates controversy for several reasons.

04:46Lack of transparency, risk of gambling addiction, and aggressive practices.

04:51For example, the European Consumers Organization, BEUC,

04:56reported the lack of regulation of these purchases to the EU,

05:00warning that virtual currency systems hide the real cost and encourage impulsive spending.

05:06The BEUC points out that these mechanics can lead players, especially miners,

05:11to invest much more than planned.

05:13The phenomenon is not insignificant.

05:15In 2020, microtransactions generated more than 46 billion euros in revenue,

05:2225% of the global total for video games,

05:25and their use is skyrocketing in popular games,

05:29FIFA Ultimate Team, Fortnite, Genshin Impact, etc.

05:34This model has its defenders, it keeps games free, but also harsh critics.

05:39Many players complain that it ends up transforming the video game into a commercial platform.

05:46An academic study indicates that micropayments are sometimes designed

05:50to disguise the real cost, until players are mentally and financially committed.

05:57Gotcha games, typical on mobile devices,

06:00introduce randomness and require spending to progress.

06:04When the purchase of functional items grants competitive advantages,

06:08as in some modes of FIFA or Genshin Impact,

06:11this is referred to as pay-to-win.

06:14Titles with these mechanics are criticized because they can upset the balance.

06:19Players who pay more have an advantage over those who do not spend.

06:24As a Uruguayan analysis points out,

06:26these systems that accelerate progress or provide exclusive items

06:31tend to be more criticized, as they can create a pay-to-win environment.

06:37Another typical complaint is that games seem designed to induce spending.

06:42Slow progression designs, timers and urgent offers push users to pay to advance.

06:48A few years ago, an attempt was made to introduce NFTS into games,

06:54promising digital ownership of items.

06:56The community reacted hostilely.

06:58For example, Ubisoft's announcement about its Quartz NFTs in Ghost Recon

07:04was almost unanimously rejected.

07:07It received 96% dislikes on YouTube.

07:11The pressure was such that Ubisoft removed the promotional video.

07:16Other companies canceled similar projects in the face of criticism,

07:20such as Team17 with Worms NFT.

07:22In 2024, the trend is for most major publishers to avoid NFTs

07:29due to rejection by players and experts

07:31who consider them a speculative risk that distracts from the game itself.

07:37In short, these business models are very profitable for companies

07:41and threaten to grow even more.

07:43But they generate great frustration in the community.

07:46According to data, franchises such as FIFA and Fortnite

07:50represent the highest revenue from microtransactions in 2024,

07:55fueling ethical debates.

07:58Players and organizations warn of potential abuse

08:01and call for greater regulation.

08:04The consensus among many gamers

08:06is that the industry must seek other, more balanced forms of financing

08:11because the current model is not viable in the long term.

08:15Users also face video games

08:17that often arrive incomplete or with bugs.

08:20It is not uncommon for a big game to need a day one patch

08:24or show significant errors upon release.

08:27Although the list of notable titles from recent years is long,

08:30many major releases had bugs that required updates to fix them.

08:35For example, paid expansions raised doubts.

08:38The first Starfield DLC, Shattered Space 2024,

08:43disappointed critics and players alike

08:45for having very little new content in relation to its price, 30 euros,

08:50with repetitive missions that gave the impression

08:52of a shortage of new features.

08:55Games as a service also suffer from this problem.

09:00Skull and Bones was released in 2024 as a paid 8-away game,

09:04but was criticized for its repetitive mechanics

09:07and the constant feeling that there was a lack of content in the open map.

09:13In general, the tendency to cut or postpone content,

09:16leaving players thirsty for new mechanics,

09:19is seen in many modern titles.

09:22Many developments still suffer from crunch,

09:24excessive working hours to meet deadlines.

09:27In recent years, there has been pressure to end this culture,

09:31but extreme cases still exist.

09:33Economist Matthew Ball points out that improving conditions,

09:37benefits, less crunch,

09:39is raising the hourly cost of development.

09:42And the workers themselves have sounded the alarm.

09:45For example, nearly 100 employees of Build a Rocket Boy

09:49publicly demanded better practices

09:51after denouncing unbearable overtime

09:54and poor management at their studio.

09:56This affects the final quality.

09:59Exhausted or time-pressed teams

10:01sometimes release less polished products.

10:05It is increasingly common for games

10:07to offer only a bare minimum in their initial version,

10:10with good add-ons to complete the experience.

10:13Especially in online games,

10:15many features or characters

10:17only arrive via DLC or updates.

10:20An article in Zataka summed up the criticism well.

10:25Buying a game no longer guarantees you have the whole thing

10:28because many titles are sold in editions

10:30that boast of being incomplete,

10:33with season passes required to access full game modes.

10:37Titles such as For Honor

10:38even force you to invest hundreds of additional euros

10:42if you want to unlock all the extra content.

10:45In short,

10:46the accumulation of errors,

10:48cut content,

10:49and the need for post-launch patches

10:51leaves many players feeling like they've bought a bones

10:54that they have to add muscle to later.

10:56This generates massive frustration.

10:59Releases that were once celebrated

11:00due to the prestige of the series

11:03or the hope placed in the developer

11:04are now received with caution.

11:07Several analysts comment

11:09that this situation is closely linked to financial pressure.

11:12There is a rush to monetize,

11:15cut costs,

11:16or meet deadlines,

11:18sometimes at the expense of quality.

11:21The balance is evident in the relationship with studios.

11:24Failed games can destroy reputations,

11:27as in the case of Concord,

11:29or erode the trust of the community.

11:32Finally,

11:32another serious conflict

11:34is the toxicity that prevails in many gaming communities.

11:38The online environment,

11:40chat rooms,

11:40forums,

11:41social media,

11:42amplifies abusive behavior.

11:44Studies and institutions

11:46have been denouncing online harassment for years.

11:50In 2024,

11:51we continue to see cases of insults

11:53based on gender,

11:55ethnicity,

11:56sexual orientation,

11:58among others.

11:59A report cited by the World Economic Forum

12:01notes that 77% of female gamers

12:04have experienced gender-specific discrimination,

12:08insults,

12:09sexual comments,

12:10etc.

12:11In addition,

12:1328% of all gamers who experience harassment

12:15end up avoiding certain games

12:18due to their poor reputation for hostility.

12:21This indicates that the toxic environment

12:23drives away part of the audience

12:25and can damage the image of a title.

12:28Riot Games, for example,

12:30comments year after year on measures against hate

12:32in League of Legends,

12:34considered one of the games with the most incidents of this type.

12:37However,

12:39toxicity is not only verbal,

12:42mass campaigns have led to personal harassment.

12:46In 2023,

12:47several fans of Final Fantasy VII

12:49rebirth attacked actress Brianna White,

12:53voice of Aerith,

12:54for her performance,

12:56until the actress herself publicly asked the community to

12:59relax,

13:00and Ubisoft slash Square Enix

13:03warned of sanctions against harassers on their servers.

13:06Many players attribute a game's flaws to its creators

13:10and sometimes take their anger out directly on them.

13:14Independent developers have expressed this.

13:17Valve published an internal document advising creators

13:20not to get involved in hateful discussions

13:23because

13:23it's a battle you're not going to win.

13:26This reflects that even large platforms

13:29recognize how difficult it is to protect the team

13:32from trolls and haters,

13:33The authors of an independent game,

13:36Coquette Dragoon,

13:37shared this advice from Valve

13:39after receiving harsh and unfair criticism.

13:43The idea is that ignoring malicious comments

13:45is the only strategy.

13:47In short,

13:48the global gaming community is fragmented.

13:51On the one hand,

13:52there are passionate gamers

13:53willing to defend their favorite games.

13:55But there is also a lot of aggressive behavior

13:58that has led to campaigns

13:59such as hashtag gamers rise up,

14:02irony with Gamergate,

14:04or debates about moderation.

14:06Some media outlets even warned

14:08that in 2024,

14:10outbreaks of coordinated hate

14:12are resurging on social media.

14:15Companies are struggling with chat filters,

14:17moderators,

14:18and sanctions,

14:19but the culture of hate

14:20has become normalized

14:21in certain gaming circles.

14:24This affects the general mood.

14:25One in four harassed players

14:28stopped playing titles

14:29in which they experienced hostility,

14:31and several developers have stated

14:33that excessive toxicity

14:34is making them reconsider

14:36their dealings with the public.

14:39In short,

14:40the video game industry

14:41is experiencing a clash of realities.

14:44On the one hand,

14:46it remains one of the world's

14:47largest sources of entertainment,

14:49with profits greater than cinema and music.

14:52On the other,

14:53it faces profound

14:54and contradictory problems.

14:57Record layoffs show

14:58that the current development model,

15:00bigger and more ambitious than ever,

15:02is unsustainable without correction.

15:05At the same time,

15:07monetization and community practices

15:08have generated rejection

15:10even among gamers themselves,

15:12calling into question

15:13the industry's priorities.

15:15For many gamers,

15:16the feeling is bittersweet.

15:18We love video games,

15:19but we are tired of the crises

15:22surrounding our favorite studios and forums.

15:25The question remains,

15:26can the industry steer this situation

15:28toward a more balanced and healthy scenario?

15:32What do you think?

15:33Leave us your comment

15:34and tell us what you think

15:35should change in video games today.

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