Ahead of this year’s show, the Game Developers Conference (GDC) has unveiled its annual State of the Game Industry Survey, offering insights from over 3,000 developers worldwide. The survey provides a snapshot of the gaming industry’s current state, highlighting both its challenges and opportunities. This year’s results reveal widespread concerns about layoffs, the growing use of generative AI, shifting platform preferences, and ongoing struggles with funding.
As the industry evolves, these insights give us a clearer picture of how developers are navigating an increasingly complex landscape. Let’s explore the survey results and unpack what they mean for the future of gaming.
Layoffs Remain a Major Concern
Layoffs have left a significant mark on the game industry over the past year. According to the survey, more than 10% of developers reported losing their jobs, with narrative design roles hit hardest. Beyond direct job losses, many respondents saw colleagues or team members laid off, creating a sense of unease. A notable 58% expressed concerns about their own job security, down in confidence compared to prior years.
Companies often point to restructuring, declining revenues, or market shifts as reasons for these layoffs. Yet, 19% of developers said they weren’t given any explanation. This level of instability continues to affect developers, especially those in smaller teams or narrative-driven roles.
Generative AI Sparks Heated Debate
Generative AI is becoming more common in game development, but opinions remain divided. Thirty percent of developers see AI as harmful to the industry, a 12% increase from last year. Common concerns include intellectual property theft, energy consumption, and biases in AI-generated content.
Despite these worries, over half of developers work at companies using generative AI, and 36% use it personally. Interestingly, older developers (55+) are more likely to adopt AI tools than their younger peers. This debate shows uncertainty about AI’s role in creative work.
PC Continues Its Rise as the Development Focus
PC remains the top platform for game development, with 80% of developers creating PC titles, up from 66% last year. Valve’s Steam Deck likely contributed to this growth, with many developers considering it its own platform within PC gaming.
Console development remains strong, with 38% of developers working on PlayStation 5 titles and 34% focusing on Xbox Series X|S.
Mobile game development has also increased, with 29% targeting Android and 28% focused on iOS. Interest in browser-based games is at its highest in over a decade, with 16% of developers working on web-based projects. Meanwhile, VR/AR platforms continue to attract attention, with Meta Quest leading as the most supported VR platform.
Cloud Gaming Gains Ground
Cloud gaming is becoming a growing focus in game development. Xbox Game Pass leads, with 13% of developers creating games for the service. PlayStation Plus follows at 9%, reflecting its gradual expansion into premium offerings.
Xbox Game Pass benefits from a large subscriber base and integration with both PC and console platforms. PlayStation Plus is also gaining traction through its Extra and Premium tiers, appealing to developers seeking broader exposure.
According to the survey, developers see cloud gaming as an opportunity to bring games to more players through flexible, subscription-based models. However, challenges remain, including concerns about latency, infrastructure limitations, and the difficulty of building long-term player engagement in a subscription-driven ecosystem.
Cloud gaming remains smaller than PC and console development, but its growth points to more accessible gaming options ahead.
Live Service Games Face Declining Interest
Developer interest in live service games is declining. Only 16% of respondents are currently working on these projects, while 41% expressed no interest in pursuing them. Common concerns include market oversaturation, creative burnout, and waning player engagement.
AAA studios remain more committed to live-service models, with a third of respondents from large teams involved in such projects. Despite the challenges, some developers still see financial stability and community-building as key advantages of this approach.
Funding Challenges and Developer Frustrations
Securing funding remains one of the biggest hurdles for game developers. Over half (56%) rely on self-funding, making it the most common method. While this approach offers creative freedom, it also carries risks like time constraints, market instability, and limited industry connections.
Other common funding sources include publishing deals, co-development contracts, and government grants. Among these, co-development contracts received the highest satisfaction rates, while accelerators and crowdfunding were viewed as the least reliable. Growing competition for funding has made it increasingly difficult for smaller studios to find the support they need.
Climate Change Impacts Are Growing
Natural disasters are increasingly affecting the gaming industry. Sixteen percent of respondents reported that their work was disrupted by events like floods, hurricanes, or wildfires in the past year. Water-related disasters were the most common, followed by extreme heat and earthquakes. These incidents highlight the growing need for industry-wide resilience planning.
Looking Ahead
If one thing is clear, the 2025 Game Industry Survey highlights the video game industry is going through significant change. Layoffs, funding issues, and generative AI concerns show the challenges developers face in 2025. At the same time, the growing focus on PC and browser-based games, along with declining interest in live-service models, suggests there are new opportunities for creativity and innovation.
As someone who has followed this industry closely for years, it’s interesting to see how trends shift like self-funding and PC development reshape the industry. The rise of self-funding and the growing appeal of platforms like Steam Deck show how developers are finding new ways to adapt. Yet, seeing the uncertainty around job security and the hesitation about AI reminds me how fragile this field can be for those creating the games we love.
What are your thoughts on the industry’s direction? Share your perspective in the comments below.
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