The Game Developers Conference (GDC) organization released its annual study this week examining the state of the video game industry.
More than 3,000 people working on their creation answered numerous questions to retrace their journey over the last 12 months and give us a glimpse behind the scenes of one of the most profitable entertainment industries in the world.
From independent studios (32%) to AA (11%) and AAA (18%), the respondents allowed the GDC to establish recent trends on many subjects. While a video game crisis could be looming on the horizon, let’s take a closer look at what those first concerned are saying.
Developer jobs in danger
By 2023, more than 10,000 people working in the video game industry will have lost their jobs. If the pandemic allowed it to experience unprecedented growth, the crisis and inflation that followed unfortunately cut short the celebrations for many developers. “ Studios grew too fast during the pandemic and people are now buying fewer games because of inflation. The bubble is unfortunately bursting “, indicated a respondent to the GDC.
Thus, according to this new study, 35% of respondents have experienced layoffs within their studio. 17% of them indicated that colleagues in the same department were impacted, 11% saw people from other teams walk out the door, and 7% lost their job themselves. The positions most affected by these layoffs appear to be quality assurance (QA) developers. This is particularly what happened at Naughty Dog, a majority of departures having affected this department.
Unfortunately, if we are to believe the developers interviewed in the study, the situation is not likely to improve in 2024. 56% of them consider themselves worried to varying degrees about experiencing further layoffs in the within their studio. 35% are a little more optimistic, indicating that they do not fear that such a thing will happen to them.
The numerous layoffs also had a less than pleasant side effect. 53% of respondents indicate they work between 41 and 60 hours per week. 71% of developers working more than 40 hours per week say this is due to personal pressure, fear of losing their job by being less productive. With reduced numbers, such a trend is unfortunately likely to continue this year.
AI and video games: a controversial relationship
The explosive growth of AI has of course not spared the video game industry. Some big studios like Square Enix have clearly shown their deep interest in this technology, which is both promising and dangerous. 31% of respondents indicated that they themselves use generative AI for their tasks, 18% say that colleagues use it, and 15% express an interest in such tools. 23% have no interest in this technology.
People who indicated using these tools also specified which departments they work in: 44% in finance, 41% in marketing and communication, 33% in production and team management, 25% in programming, 21 % in design, 13% in writing, 16% in art direction, 14% in audio and 6% in quality assurance. These figures could therefore coincide with the fact that quality assurance positions are the most affected by layoffs.
Surprisingly, the use of generative AI is made more within independent studios than in larger structures. 37% of independent developers say they use it daily, compared to 21% of AA and AAA studios. “ Code development is one of the best industries where AI can be helpful in order to optimize things. Not to replace anyone “, declared one of the respondents.
Thus, we see that AI has already established itself well in the video game industry. However, developers also ask questions, particularly ethical ones, about their use. 57% are undecided about the positive or negative impact of such tools. At the opposite ends of this spectrum, 21% predict a positive impact and 18% a negative impact. Among the most optimistic, we find respondents working in finance or marketing. The most pessimistic work in the writing, artistic direction and quality assurance sectors. The loop is thus closed.
The PC remains the darling of developers… and there is a certain interest in the Switch 2
Let’s then move on to less sinister, but equally interesting, findings regarding what is in store for 2024. 66% of respondents indicate that their current project is developed on PC, compared to respectively 35% and 34% for the PS5 and Xbox Series. X|S. Mobile, which turns out to be by far the most lucrative market in the industry, as seen in a graph tracing 50 years of its history, interests respondents at 24% on Android and 23% on iOS .
One figure, however, caught our attention, although quite minor compared to the others: 8% of respondents indicated that they were developing their current project on… the successor to the Nintendo Switch. Even more interesting, 32% indicated that this is the platform that intrigues them the most. Enough to add further grist to the mill regarding a release of the famous Switch 2 later this year, despite the stubborn silence of Big N.
In addition to this highly anticipated console, the PC remains dominant as the platform of greatest interest to developers, at 62%. The PS5 follows suit at 41%, and the Xbox Series X|S unfortunately remains last among the biggest platforms on the market, at 29%. The current Nintendo Switch brings up the rear at 25%.
Despite a market that is struggling to find a place, VR headsets interest 21% of respondents. Meta Quest products continue to lead the field, with 34% of VR game developers finding them the most attractive for developing their VR games. The Valve Index follows at 34%. Not yet released, the Apple Vision Pro also piques the interest of respondents, at 30%. The PS VR2 unfortunately takes the chocolate medal, at 27%.
Unreal and Unity remain the dominant engines
Despite the widespread controversy surrounding Unity, which has since more or less subsided, not unfortunately without serious consequences such as a massive wave of layoffs within it, it remains a favorite engine of the developers surveyed. Specifically, 33% responded that it is their primary driver. We find exactly the same figure for the Unreal Engine, Epic Games’ flagship product. Its very promising fifth iteration is of course greatly attracting the attention of developers.
14% indicate they use a homemade engine. We think in particular of Rockstar Games with RAGE 9, which will power a certain GTA 6. Finally, 3% use Godot, an emerging and promising engine. However, these values may change in the future. “ We considered switching to Godot or creating our own engine, so as not to have to worry about questionable business practices or shareholder whims. », Specified one respondent.
7% of respondents indicate that they have changed engines in the last 12 months. We can bet that this was partly motivated by Unity’s decision to change its economic model, before backpedaling in response to the real outcry from developers. 28% are still considering changing engines, but have not yet taken the plunge, while, overwhelmingly, 49% are satisfied with the engine they are using.
This sums up the most interesting data to take away from the new annual GDC study. If you want to consult it in more detail, you can find it, in PDF format, cited in the source below.
What do you think of this state of the video game industry depicted by the developers who agreed to participate in the study? Do not hesitate to fuel the debate in the comments, we will take great pleasure in reading you!
Source : Study Game Developers Conference
3