The video game industry, once a beacon of creativity and innovation, is now grappling with a crisis driven by corporate greed. According to a recent report by More Perfect Union, narrated by Alec Opperman, the pandemic fueled a surge in video game investments, leading to widespread layoffs, rushed and buggy game releases, and an erosion of worker conditions. This article delves into the insights shared by industry experts and affected workers, highlighting the detrimental impact of corporate priorities on the gaming world.
Pandemic Boom and Its Aftermath
During the pandemic, video game sales skyrocketed as people sought entertainment while confined at home. Opperman notes that 2020 was a massive year for the industry, attracting investors eager to capitalize on the booming market. By 2021, investment in gaming had surged, with companies like Embracer Group aggressively acquiring studios.
Embracer Group’s Takeover
Embracer Group, a major player in the industry’s consolidation, bought numerous studios, including those behind popular franchises like “Tomb Raider,” “Borderlands,” and “Deus Ex.” Initially, this was met with optimism among workers. However, as Alex Cline, a former mission designer at Embracer-owned Volition Games, shared, the enthusiasm was short-lived. The company’s aggressive expansion and subsequent layoffs devastated many.
The Reality of Corporate Mergers
Microsoft’s merger with Activision in 2022 is another example of industry consolidation. As game developer Colin McInerney explains, these large companies buy studios to achieve market dominance and shareholder satisfaction. However, the need to meet shareholders’ growth expectations often leads to inhumane working hours, rushed game releases, and a focus on microtransactions over game quality.
Layoffs and Job Insecurity
The video highlights the alarming rate of layoffs in the industry. In 2023, over 10,000 workers were laid off, with Embracer Group responsible for half of these job losses. Nicole Carpenter, a journalist at Polygon, emphasizes the difficulty these laid-off workers face in finding new jobs, as the pool of unemployed game developers continues to grow.
The Impact on Game Quality
The consolidation and layoffs are taking a toll on game quality. As Opperman points out, recent game releases have been plagued with bugs and glitches, leading to consumer frustration. The loss of experienced developers, who leave the industry due to job insecurity, further exacerbates this issue. McInerney notes that when teams are downsized, remaining workers struggle to fill the gaps, leading to smaller, less innovative projects.
Financial Strain on Workers
Laid-off workers face severe financial hardships. Many had relocated to expensive cities for their jobs and now struggle with rent and healthcare costs. Carpenter highlights that the loss of healthcare is particularly devastating, as many in the industry have pre-existing conditions or families to support.
The Role of Shareholders
Lars Wingefors, CEO of Embracer, candidly admits that their primary goal is to maximize shareholder value. This focus on quarterly profits, according to Carpenter, is detrimental to the artistic integrity of the industry. The relentless pursuit of profit is compromising game quality and worker well-being.
The Need for Unions
One potential solution to these issues is unionization. The video reports that Sega of America employees recently won a union contract, securing pay raises and layoff protections. Workers at ZeniMax, the makers of “Fallout” and “The Elder Scrolls,” have also unionized and are negotiating for better conditions.
The Future of Gaming
As the industry grapples with these challenges, the importance of sustainable teams and creative freedom cannot be overstated. McInerney, now working on indie games, believes that focusing on interesting art and sustainable practices will naturally attract players. However, without significant changes, the current trajectory of the industry suggests more buggy launches, failed promises, and worker exploitation.
“Workers Do the Work”
People in the comments shared their thoughts: “CEOs and shareholders don’t code. They dont create games. They dont even play games. Workers do the work.”
Another commenter added: “This has been the pattern that has been plaguing US industries for decades. Focusing on shareholder short term profits only, has been dragging down the viability of most sectors in the long term.”
One person said: “I genuinely don’t understand how ‘buy a company to then fire the workers and close the project’ is even legal and normal. Corporations should be liable for that stuff. It’s totally leads to monopolies, worse conditions for workers and worse products for consumers.”
A Bleak Future
Corporate greed is eroding the foundations of the video game industry. As companies prioritize shareholder value over game quality and worker well-being, the industry faces a bleak future. However, unionization and a renewed focus on sustainable and creative practices offer a glimmer of hope. For now, the industry’s greatest challenge is balancing profitability with the integrity of its games and the dignity of its workers.
Corporate Consolidation
What do you think? How have recent changes in the video game industry affected your gaming experience? What are your thoughts on the impact of corporate consolidation on game quality and worker conditions? How do you think unionization could change the dynamics of the video game industry? Have you noticed an increase in bugs and glitches in recent game releases?
To dive deeper into this topic, check out the full video on More Perfect Union’s YouTube channel here.
