Over 46,000 jobs lost globally since 2022, but how many were due to lack of the gaming spirit and AI ethics?
According to various reports, the gaming industry is currently facing a severe crisis marked by widespread layoffs and studio closures.
Since 2022, an estimated 46,055 jobs have been cut across various gaming firms, reflecting significant industry upheaval. One startup, Ludeo, founded in 2022, has laid off about half of its 50 employees primarily due to industry shifts driven by AI technology, despite having raised US$42m from major investors to focus on interactive media formats.
Meanwhile, Unity, a major player in game development tools, has laid off approximately 3,200 personnel since 2022, including senior developers. The firm cites exhaustion from ongoing restructuring as a reason for the latest cuts, with layoffs often communicated via early morning emails.
The most dramatic case involves Build a Rocket Boy, founded by former GTA producer Leslie Benzies. Following the disastrous launch of its game MindsEye in June 2025, the studio has laid off between 250 and 300 employees. Former and current staff members have raised concerns over systemic mistreatment, mismanagement, and unfair redundancy practices. An open letter signed by 93 employees, supported by their union, highlights toxic work conditions, micromanagement, and unpaid overtime during crunch periods.
Employees have described a lack of clear project direction, and accused the firm of micromanaging through directives called “Leslie tickets”, which had hampered productivity and morale.
The ongoing layoffs and legal battles underscore the turbulent state of the gaming industry amid rapid technological changes like AI integration, which is also reshaping talent needs and studio operations.
Experts are emphasizing the urgent need for clear project direction, fair labor practices, and transparent communication during restructuring. They urge the gaming industry to adapt responsibly to AI-driven changes — by updating skills, fostering sustainable work environments, and rethinking development models to stabilize studios and protect creative talent amid ongoing upheaval. If gaming teaches humans anything, it is that “we learn the resilience to rise up one more time beyond every defeat”, so the industry leaders cannot seek refuge behind the excuse that it is futile to resist disruption. Embracing AI responsibly is the next level challenge: one that demands courage, innovation, and a commitment to sustainable creative futures amidst disruption.
