A new report has painted a rather bleak picture of life in the era of games industry layoffs.
More than a third of games industry professionals have been laid off in the past two years, according to a new global survey. Morale across the industry has hit a low.
Spotted by VGC, the 15th State of the Game Industry survey, run by the GDC Festival of Gaming, polled more than 2600 games industry professionals worldwide. It found 34% had been laid off at some point in the past two years, rising to 39% in the US.
That’s a marked increase on GDC’s previous survey, published in January, which found 28% had been laid off over the same timeframe.
Games industry layoffs – quick links
What else did the survey find?
The picture for those who lost their jobs is bleak. More than half (54%) said they were still unemployed, and 27% said they had submitted at least 100 job applications.
Of those laid off, 17% said it had happened twice in two years, and 3% three or more times.
Job security is shaky even for those still employed. Only 45% at least slightly agreed that their job was secure for the next 12 months.
Overall, 81% of respondents said they were concerned about their future in the games industry, and 73% disagreed that they were hopeful about where it is headed.
One independent studio co-founder quoted in the report criticised executives who refused to train junior developers, then laid off experienced staff to cut costs. They warned the coming years would decide whether games remain a creative profession or become ‘a financial asset-management business’.
How does Australia compare?
The GDC survey doesn’t break out Australian results. But local data suggests the industry here has looked better than the global picture, though not without casualties.
The Interactive Games & Entertainment Association’s latest Australian Game Development Industry Snapshot, released in March, found local studios generated $608.5 million in revenue in FY25. The industry employed 2443 full-time staff, only slightly down from 2465 the year before.
IGEA described a maturing industry with relative stability in the local jobs market after years of downturn. More than half of surveyed studios said they planned to hire.
Australian studios earn around 95% of their revenue overseas. That leaves them closely tied to the health of the global market.
Local studios haven’t been immune
Australia has seen its own share of cuts. In March, Brisbane’s Halfbrick, the studio behind Fruit Ninja and Jetpack Joyride, cut 41 jobs and ended a number of international engagements.
Melbourne-based PlaySide Studios, one of Australia’s largest developers, restructured in 2025, largely within its work-for-hire teams. That model, building games for international publishers, has left local studios exposed when overseas contracts dry up.
Globally, the ASGC Games Industry Layoffs Tracker projects more than 14,000 games industry job losses in 2026.
What’s keeping Australia afloat amid global games industry layoffs?
Industry advocates point to government support as a key buffer. Since 2023, the federal Digital Games Tax Offset has given eligible studios a 30% rebate on qualifying expenditure, alongside state-based funding and rebates.
IGEA CEO Ron Curry has said the industry snapshot data will help strengthen the case for continued support, including the Digital Games Tax Offset and direct funding.
Whether that support can keep shielding local developers from a worsening global downturn is the question the industry will be asking in 2027.
