Global layoffs are a growth ceiling,

China's layoffs are aimed at reducing swelling.

Even if it is a large factory, there is no guarantee that high investment and large production can be exchanged for good returns.

Shortly after the release of "Black Myth: Wukong", Sony's multiplayer shooter "Star Attack" was launched on August 26, but after about 10 days of launch, it was suspended and offline on September 6.

According to reports, the 2024 layoffs of global game companies compiled by the statistics website Game Industry Layoffs show that in 2024, the world's well-known game companies will lay off a total of 14,600 employees, of which Activision Blizzard will lay off the largest number of employees, with a total of 1,900 layoffs.

This was followed by Unity, a real-time 3D interactive content creation and operation platform, which laid off 1,800 employees.

U.S. gaming companies accounted for 39 percent of the layoffs, making them the hardest hit by layoffs this year. Chinese companies accounted for 8%, Japan and South Korea each accounted for 6%.

European gaming companies have also been hit hard, with Sweden-based gaming companies laying off 14% of their workforce, French and Canadian companies accounting for 9% of the total, and UK companies accounting for 7%.

Gaming giants including EA, Ubisoft, PlayStation, and Xbox have not been immune to this wave of layoffs.

However, there is one company that has shown amazing resilience to pressure. Under the shadow of global layoffs, Nintendo has been almost unscathed over the past two years.

Nintendo has publicly admitted that the cost of making games has increased exponentially in recent years, so the company has also been affected by changes in the industry.

Still, Nintendo is in a much better position compared to other companies.

While layoffs are very common across the industry, Nintendo has not carried out mass layoffs.

In fact, the company has barely made any layoffs in 2023 and 2024.

This wave of layoffs will also sweep the Chinese game industry in 2024.

League of Legends developer Riot Games announced in October that it plans to make changes to the League of Legends project team, which is expected to be around 10%.

Not long ago, NetEase Shenzhen also reported optimization news.

Although relevant people close to NetEase refuted the rumors in an interview, they also said that it was a regular adjustment for a single product, and many colleagues had already switched to other products.

Why is the global gaming industry laying off employees in 2024?

Why are there layoffs in the domestic game industry?

In this regard, Red Star News reporter Zhang Luxi and Shule had an exchange, and this monkey thought:

Global layoffs are a growth ceiling, while Chinese layoffs are aimed at reducing swelling, and the two are the same.

The global game industry has laid off employees, mainly console games and PC games, the two main directions of the foreign game industry, which have encountered a growth ceiling.

Coupled with the lack of innovative technological breakthroughs in the game industry as a whole, the industry must take the route of reducing costs and increasing efficiency.

In addition, mergers and acquisitions have become common in the global gaming industry in recent years.

Large manufacturers are integrating high-quality global game resources, and in this integration process, it is inevitable that there will be too many homogeneous resources, which also need to be optimized through layoffs and other methods.

Around 2018, the domestic game industry expanded greatly, a lot of hot money poured into the game track, and many small and medium-sized factories rose, absorbing a large number of talents.

However, in order to really grow, it needs to be creative or online, and at the same time, it is also necessary to accurately cultivate the vertical track, and most of the small and medium-sized factories that blindly expand have not grown into Shanghai F4.

Therefore, layoffs after the heat wave subsides are inevitable.

In fact, at that time, including large factories, they were a little blindly expanding, and many small and medium-sized factories were acquired.

The studios that have swelled with these hot money have not achieved their target combat power, and they will inevitably be eliminated.

But the future of China's game industry will definitely be better.

This wave of cost reduction and efficiency increase is essentially a swelling reduction for the edema of the previous years.

The swelling is achieved, and for high-quality games and games going overseas, it will bring a help like streamlining the government.

This article is from Xinzhi self-media and does not represent the views and positions of Business Xinzhi.If there is any suspicion of infringement, please contact the administrator of the Business News Platform.Contact: system@shangyexinzhi.com