The issues game developers are facing in 2025 | IGDA interview

Game developers are among the most creative people on the planet, but they have had a tough 2.5 years with more than 35,000 layoffs across gaming. Some of those cutbacks were expected to ease by 2025, but we’ve seen 1,200-plus layoffs in the first quarter.

The troubles are so acute that, for the second year in a row, the Independent Games Festival host Shawn Pierre, assistant professor at NYU, started out with a plea for support for game developers during a difficult time. GDC usually draws around 30,000 people, but we’ll see what the official numbers are later. This show felt more sparse in both the side event locations, the show floor and the hotel lobbies. But there were crowded moments, like at Amir Satvat’s panel (moderated by me) on Thursday, the Animal Well presentation by a solo dev, and the fundraising panel on Monday morning.

The key to thriving is coming up with fresh takes on fun games, but that’s not easy with 19,000 games coming out on Steam every year. And there are many treacherous shoals that can wreck a game studio, including a dearth of funding and consolidation trends.

To catch up on the state of game development in 2025, I caught up last week with Jakin Vela, executive director of the International Game Developers Association (IGDA). I tried to probe the places where we could get some real ground truth and transparency on game development while at GDC.

The IGDA didn’t come up with its annual survey of game developers this year, as a funding slowdown has hampered its ability to do these reports. But Vela said the group will do such reports every five years or so now, and we talked about the GDC’s developer survey.

Here’s an edited transcript of our interview.

GamesBeat: What’s your agenda for GDC this year?

Jakin Vela: Our agenda is to just be strong for our community, have a presence here, have a few mixers that we’re doing in collaboration with other organizations. Making sure people know that we’re here to support, here to connect them to a network of global devs.

GamesBeat: You would normally have the annual report coming up.

Vela: Unfortunately, due to some decisions around financial constraints and the lack of changes from the last two Developer Satisfaction Surveys, we determined that we would hold off another two years and have a five-year gap with our last survey, which came out in 2023, but we launched it a little late. It’ll probably be more like 2027 when we do the next one.

GamesBeat: What do you think has happened with the membership in the last year or so? What changes have they seen?

Vela: Membership has been unique. Our membership fluctuates every month, because studios may not renew with us, and they have a lot of members that come with them. Or they’ll renew later after a brief lapse. We’re seeing growth in emerging markets. The Middle East region has seen rapid growth. The LatAm region has seen huge growth and lots of chapters being developed. Our membership really extends through the chapters of the IGDA. We’re seeing a boom in those areas. It’s about the same in the United States.

GamesBeat: What is the biggest chapter you have in the Middle East?

Vela: Saudi Arabia is the biggest. Technically it’s the Riyadh chapter, but I think they’re expanding to cover the entire country. They have events where hundreds of people gather. Their development scene is unique. They’re really eager to get globally connected. There are also a lot of stereotypes and misconceptions about cultural beliefs of folks in Saudi and how that may or may not mesh with North American and European and other cultural standards. We’re trying to make sure people are connected to our Saudi chapter and know that these are amazing developers, amazing people. They want to be invited to the table as well.

GamesBeat: GDC did their survey. Was there anything interesting about the labor picture in the industry?

Vela: When I looked at the GDC survey, I did notice the AI point. About 30% of developers were skeptical about AI use. I don’t know if you were aware, but last year at our IGDA booth, we polled people walking by about where they felt AI was. Were they excited? Were they concerned? About 40% were on the concerned side as far as AI impacting their jobs, impacting their livelihoods. Seeing that report having increased from the previous year’s report–I want to say the last GDC report said 18% of developers were concerned about AI. I think we’re finally seeing people understand the serious impact AI is going to have on their jobs, especially jobs in QA, localization, anything where people are susceptible to being replaced with automation and AI.

GamesBeat: Are you hearing more about exactly what tools are being used and the impacts those have?

Vela: It’s a hard number to grasp. For our community at IGDA, we have various special interest groups that have expressed deep concerns around AI. In our localization community, AI replacing translation has a huge impact on freelancers. Their livelihood depends on that. At the same time, AI translations aren’t up to par compared to any kind of human intervention. I’m not sure about numbers regarding that, but the segments and communities–localization, QA for sure. Artists have been among the first to be very stern in their stance against AI art, because of all the ethics and IP issues around how models are trained. It’s far-reaching.

Obviously we haven’t seen a lot of studios say, “Hey, we’re replacing people with AI!” But we can read between the lines. People are laid off and then suddenly there are PR statements about investments in AI. I won’t name any names. You probably know who I’m talking about. But laying people off and then committing to investing in AI, I see that as the writing on the wall. Studios, large companies, are looking to replace workers, when AI should really be about augmenting and supplementing human work.

GamesBeat: The actors’ strike against the game companies is still going on. That’s another indication that issues have yet to be resolved.

Vela: The last I saw on the SAG-AFTRA strike was probably a March 13 article, if I had to recall. It was about how negotiations are still underway, and they’re still very concerned that voice actors don’t understand the implications that AI voice replication has on sustainable work practices. If you’ve signed a contract to do voice work for a company and there’s a clause that allows them to use your voice in subsequent volumes or DLC packs–are you going to be paid? If so, how much? SAG-AFTRA is tackling how to protect workers, voice actors in this particular regard. I don’t think they’ve settled on anything yet, but I think they’re optimistic.

GamesBeat: I did see a SAG-AFTRA announcement last week that said they remain far apart.

Vela: The article I was reading, I think the spokesperson’s wording was that they look forward to getting back to negotiations.

GamesBeat: They were objecting to some indications from someone that they were very close to a deal.

Vela: That makes sense.

GamesBeat: There are different tea leaves to read there. Are we seeing any obvious accomplishments with AI yet?

Vela: It depends on how you look at it. If you look at it from an indie’s perspective, sure. AI is helping iterate quickly, develop prototypes, proofs of concept. Seeing if something is fun, doable, and works. That can be successful. Those teams aren’t replacing anyone. They’re augmenting their own work, their own process with AI. Ethical considerations around training models aside, that’s a successful, interesting approach.

The other method, triple-A studios incorporating AI, I don’t think we’ve seen a significant positive impact, aside from maybe if people get angry at their studio and leave to create their own projects. I don’t know why they would do that.

GamesBeat: Celia Hodent is looking at a code of ethics for the game industry. What do you think about that kind of effort, because of things like AI? Should the game industry adopt that?

Vela: I’ve spoken with Celia about that. As the IGDA, we have a code of ethics for developers and the industry. The code of ethics that I believe Celia was looking toward–I talked about the complexities of getting buy-in for a code of ethics that applies to a global industry. There are definitely ways to do that, but it requires a lot of voices, a lot of perspectives.

The general consensus, especially for AI, that AI needs to be ethical in a number of ways. The sourcing of the data for training. The use of AI in game development, going back to supplementation and replacement. The constraints on what AI is used for. And also training people around AI and using it properly and ethically. There’s a lot of bias that can come into algorithms that will then replicate biases forever.

GamesBeat: I’ve noticed an acceleration in the number of levels in Candy Crush. The use of AI to test those levels, or even to create those levels–that seems like it’s had an impact.

Vela: That wouldn’t surprise me, if they’re using AI to increase or augment that. One of the bigger uses of AI we saw recently was in Call of Duty, if I recall. They claimed that they used AI in development and still had a successful franchise. I think we’re going to see more of that. Unfortunately, I don’t have transparency into how that’s used at studios, how that’s impacted workers, beyond of course the inevitable layoffs.

GamesBeat: Do you have any feeling for whether the layoff trend is going to slow down or change in some way?

Vela: I’ve looked at various sources. One is Amir Satvat’s data. He’s pretty on point. We expect it to still continue, just not as much as previous years. Unfortunately, with every company nowadays having a new AI branch, AI department, I’m concerned that we’re going to see more mass layoffs. Maybe not every other day like we saw in 2023 and 2024, but more chunks, departments being let go. It’s unfortunate, because companies could be allocating their workers in other departments, training and upskilling, finding other sustainable ways to keep their talent, rather than just letting them go and hiring for AI-focused positions.

GamesBeat: What do you think about the status of the labor movement, the unionization movement in games?

Vela: This is all interconnected. We’re seeing an increase in initiatives to empower workers at the same time we’re seeing companies cut workers immediately upon feeling any kind of financial pinch. It’s all intertwined. As we see more layoffs, as we see more AI getting wedged into projects and teams, we’re going to see more outcry, especially from artists and QA. QA has already been leading the trend around unionization and empowerment to begin with, but I feel like we’re going to see a lot more from designers and engineers. No one is safeguarded against how AI will impact their jobs. That will be a solidarity point for developers to come together and say, “We need to band together and ensure that our jobs are sustainable and protected, and that we as creatives and human beings can sustain a livelihood in this industry.” Otherwise collapses are going to happen.

GamesBeat: As far as jobs go, I see a couple of things. The new ground floor for gaming seems to be things like Roblox and Fortnite and Minecraft. Anybody who wants to get work, that might be the best way to do it when you’re young.

Vela: I’ve tried Roblox, and I just don’t understand it. I’m afraid it’s because I’m old. But yes, that’s a trend I’m seeing too.

GamesBeat: They’re capturing all the young folks. Some things are changing on that front. Smartphones are more popular among kids than Nintendo. A whole generation is focusing so much on things like Roblox that they don’t even watch much TV. That’s why Disney did their Fortnite deal. They know that if the youngest audience doesn’t know what their brand is, then they’re gone in a generation.

Vela: We’ve seen a lot of that emphasis on branding with the metaverse talk. That was very strong a few years ago. Now I feel like it’s gone back to the IP integration of that branding, rather than just having ads everywhere. Bringing those characters to life in Fortnite and the like. We also see a lot of folks getting their start in development there, either that or in mods for other games. I’ve seen studios have success in doing multi-project initiatives where they’re putting things out in Fortnite to potentially have some revenue there while also working on their main project. I see that as a viable way. But again, it’s not as if you make a game in Fortnite and you’re guaranteed to make it. You’re one in a million games on the platform.

GamesBeat: I just did a panel with some former CEOs. They pointed to the combination of AI and UGC as maybe the bright spot of AI. People who would have had to try to make a game all by themselves now have more power to do that, because they can embrace AI. This could be a good thing, where people can get a lot of things done without needing to form a company or get a job with a big company. I don’t know if that’s too optimistic, or if that’s something people have acknowledged. The big companies might be trouble when it comes to AI, but the smallest of developers might benefit.

Vela: Going back to where the success points are for those smaller teams, where it’s supplementing their work–they’re not replacing anybody. A solo dev, they don’t have the funds to hire and lay off anyone. They’re just getting work done. Again, aside from the ethical issues I have with AI training and algorithms, ultimately I don’t think that’s too optimistic. That’s a cool point of AI, especially in the UGC arena. It democratizes aspects of creating games. The more people we have creating games, the more stories we have, the more diverse perspectives we have, and the more innovation we have. When you do something cool and you do something cool, it’s going to spark interest in me to do something cool that mixes and matches different things that I might not have thought of. It can spawn creativity and innovation.

Certain industry stakeholders will see that as a threat to the sustainability of their companies, when really it should be seen as a supplement to the ecosystem overall. If you’re making a game on a $300 million budget and you’re getting outplayed, so to speak, by UGC creators, did you do your market research before you spent that money? Did you create the player base you needed, create those connections? There’s a lot to say positively about it. For those who have negative things to say, I’d suggest diving deeper into the criticisms.

GamesBeat: Are you trying to help move the conversations around these topics? Facilitate them somehow, get to more positive developments?

Vela: Last year we held a Changing the Industry conference with an overview of what brought us to the point we’re at today, followed by a panel discussion with some industry leaders and union organizers. That was helpful, just to get more people aware–I think there’s a lack of general awareness about where the industry is going right now. People are focused, of course, on their own livelihood, their jobs. It’s difficult to take a step back and look at the big picture, the geopolitics, the changing structures at companies thanks to AI implementation, regulation, potential tariffs, all of that. There are lots of moving pieces. We’re trying to give people chunks at a time to support their education and their involvement in the industry.

Changing the Industry was really focused on worker empowerment. This year we want to lean into alternative, sustainable practices for studios. Instead of expanding really fast and dropping everyone – layoffs once a project is completed, or if it was a flop – how can studios reallocate workers to new projects? How can studios balance multiple projects at the same time to sustain revenue? What alternative revenue sources are there for the games and IPs you have? Finding ways so that workers aren’t the first thing on a company’s mind to cut when finances are tight.

GamesBeat: What do you think about social media and whether game developers feel sufficiently protected from people who have a lot of hate for them out there?

Vela: That’s a hard one. Unfortunately we’ve seen–call it a deregulation of the moderation on many platforms, like X and Meta. That’s unfortunate. Now people can say some of the most heinous things, and it’s “free speech.” No consequences. That’s not how we’ve operated as a society before. To see platforms accept that kind of behavior is disheartening.

We’ve seen a lot of people move over to Bluesky, which seems to be a bit more community-centric, community-driven. In terms of protection–people are deleting their Twitter accounts, deleting their Facebooks. They’re controlling and constraining how people can get hold of them. I haven’t seen a social media backlash on Bluesky the way we’ve seen it on Twitter before. I’m sure it exists somewhere, but I haven’t seen it. I’m hopeful that Bluesky or other mediums like it will be a way for players and developers to have a community connection while remaining civil.

In terms of protection, there are lots of resources people can follow online around deleting your public information, making sure your privacy and security checks are on point for the platforms you use. Developers should definitely take advantage of that right now.

GamesBeat: Unfortunately, Bluesky is in the [33 million] space, while Twitter is around a [611 million] users.

Vela: Not everyone’s there. That’s also impactful on reach. But the engagement–even though the reach might be smaller, the engagement can be better. People are excited. They’re positive. They’re supportive. I feel like I haven’t seen that in a while. Every time I open up Twitter or Facebook it’s political, culture war nonsense, nothing good. We need positivity right now in the industry. I think Bluesky has that.

GamesBeat: Any other big things on your mind at GDC?

Vela: GDC is a spot where developers can come together and experience a sense of solidarity among each other during a difficult time. One thing I want to push is that right now, it seems like a very dark time. It seems like the industry is collapsing in one way or another. It seems like AI is going to take all of our jobs. People will be out of work. But all of this anger, all of this frustration, all these dark times and their influences will lead to developers banding together, fighting against the things and people that are trying to change their work space, their livelihoods, and their careers. Only through community will we make big changes happen. The oligarchs of the world–we have to band together to overcome the adversity that stems from, ultimately, capitalism.

GamesBeat: Elon Musk, our oligarch in chief, has tweeted about how we need to end game journalism, end wokism in games, create his own games–

Vela: It’s alarming how mediocrity mixed with confidence has made an impact on our society. When you see mediocrity and confidence paired, people believe it, buy into it, and don’t question it. One thing we as developers need to do is hold each other accountable to question and criticize these claims that come to us. Always ask the question, “Where’s the money?” I feel like that answers a lot of questions about why someone is involved in a project, why a particular initiative is created. Where is the money?

Developers have to come together to ensure that the change that will inevitably happen in the industry doesn’t negatively impact them. They have to ensure that they have a voice at the table, that they’re speaking their minds. Building coalitions across the globe to ensure that they have a place in the industry.

GamesBeat: It seems like a lot of folks remain divided about whether politics and games or politics and entertainment mix well. Some people believe that this is a way you can speak out, reach people, have your opinions heard, but others feel like they’re trying to take a break from that.

Vela: It’s a good point. The need to protect oneself from the constant political side of living, that’s hard. But at the same time–I’m a sociologist. There’s a whole school of sociology that was born in the wake of Nazi Germany, the Frankfurt school. They fled Germany and came to the United States. Critical theory was created out of sociology, and it was very much the intersection of media and its impact on society. I very much believe that politics and entertainment media are inherently interconnected. You can’t separate them. By using games as a medium to uplift diversity, uplift people during these challenges in the political environment–we need more of that.

But it takes courage. It takes being knowledgeable about how to protect yourself online. As you know, once you come out with political statements, whether it’s in your game or anywhere else, people will come after you. I want people to stay hopeful. I want them to know that the IGDA is a place to get connected if you feel like you’re alone in this fight in the industry. You’re not. There are a lot of people working on behalf of developers. The IGDA can phone you in to whatever resource you’re looking for.