The video game industry has been experiencing significant turbulence in recent months, with several major studios and publishers announcing layoffs. This trend continues, as Tinybuild, New World Interactive (a subsidiary of the Embracer Group) and Electronic Arts join the list of companies cutting workforces.
New World Interactive, the developer behind the popular "Insurgency" and "Day of Infamy" series, announced the layoffs but did not disclose the exact number of employees affected. However, parent company Saber Interactive has confirmed that development of "Insurgency: Sandstorm" will continue.
This news comes after a difficult year for Embracer Group, which implemented massive layoffs and project cancellations in June. The situation became so dire that the company considered selling the "Borderlands" development team, Gearbox Software.
More and more publishers are reducing the number of employees
Indie game publisher Tinybuild followed suit, citing the need to "restructure costs" as the reason for its latest round of layoffs. The exact nu mber of affected employees remains unknown.
The company attributed the layoffs in part to its subsidiary, Versus Evil, delaying several titles until 2024, which negatively impacted Tinybuild's revenue. The publisher has published popular titles such as "Graveyard Keeper", "Party Hard", "Potion Craft" and "Mr.
EA Games calls layoffs "small organizational change"
Adding to the wave of layoffs, Electronic Arts, owner of popular racing game maker Codemasters, also announced workforce reductions. Similar to other companies, EA and Codemasters remained tight-lipped about the specific number of employees affected.
An EA spokesperson downplayed the layoffs, claiming they were simply "small organizational changes" designed to align teams with evolving business needs. The news comes after EA acquired Codemasters, the developer behind the "Dirt" and "F1" racing games, for a whopping $1.2 billion in 2021.
These layoffs paint a worrying picture for the video game industry. Just last month, Ubisoft Montreal laid off nearly 100 employees. Other major companies such as Epic Games (by selling Bandcamp) and CD Projekt Red have also implemented workforce reductions. This trend raises questions about the future of the industry and the well-being of its talented developers.