The video game industry has faced a turbulent year in 2024, with significant job losses, company layoffs, and the ever-growing influence of artificial intelligence (AI) that’s reshaping how games are made and who makes them. While the tech and gaming sectors continue to post record profits, the cost has often been borne by the workers behind these multi-billion-dollar empires. For those already in the industry or aspiring to join it, the road ahead might seem uncertain—but there are ways to adapt to these changes, and perhaps even thrive.
2024: Job Losses and Profits — A Growing Disparity
One of the most alarming trends in 2024 has been the wave of layoffs affecting some of the biggest names in the gaming industry. Across major companies like Microsoft Gaming, Unity Technologies, Sony, Electronic Arts (EA), Ubisoft, and Epic Games, over 13,000 jobs have been lost this year alone. This follows a similarly troubling 2023, where an additional 10,000 employees were let go.
What’s particularly striking is the fact that these same companies reported substantial profits. For example, Microsoft Gaming laid off 3,000 employees while earning a $5 billion profit, Unity made $1.2 billion, and EA earned $2 billion. In a business that depends heavily on talent—designers, developers, artists, and engineers—laying off staff while recording massive profits seems counterintuitive. Yet, this is a growing trend in large corporations, where cutting costs to boost short-term profitability often takes precedence over retaining experienced staff.
The average annual salary for a game artist in the U.S. is around $123,000, meaning that Microsoft’s layoffs alone could have been offset by just 7-10% of their profits. Unfortunately, this is often not the case. The relentless drive for increasing profits to satisfy shareholders often leads to decisions that affect the very people who make these companies successful.
The Changing Landscape for Game Artists
Beyond job cuts, the working conditions for those who remain in the industry are often far from ideal. Game artists, in particular, have reported long hours, high stress, and immense pressure—factors that contribute to high burnout rates. Combine this with layoffs, and it’s clear that being a game artist in 2024 can be a thankless job.
The Rise of AI: Friend or Foe?
As if job losses and difficult working conditions weren’t enough, AI is now playing an increasingly prominent role in the gaming industry. Companies are actively experimenting with AI to replace human workers, particularly in areas like concept art, animation, and game design. AI can work around the clock without complaint, and with fewer overheads, it presents an appealing solution to cut costs.
However, AI’s current capabilities are far from perfect. It still requires human input for tasks such as “cleaning up” AI-generated content, like fixing poorly rendered images or poorly executed designs. Freelance concept artists, for instance, are noticing a drop in work availability as AI systems start to encroach on their tasks. While AI can’t yet fully replace human creativity and craftsmanship, the rise of these technologies remains a growing concern for many.
Will Lawsuits Protect Artists?
There are currently legal challenges underway aimed at protecting artists’ intellectual property rights. OpenAI, for example, has been sued for copyright infringement due to scraping artists’ works without permission to train their AI systems. However, history suggests that even when big corporations are caught breaking the law, the results often fall short of real accountability.
Take, for example, the 2008 financial crisis, where massive corporations were allowed to continue operating after causing widespread financial devastation. Despite the apparent wrongdoing, the consequences for these corporations were minimal, with only a few individuals being held accountable. In the case of AI, the lawsuits might lead to minor settlements or fines, but it’s unlikely that they’ll halt the progress of AI systems in the creative industries.
Big corporations have the resources and influence to shape laws in their favor, and this means that even if artists win cases against AI companies, they might not see a real change in how their work is used. We’re already seeing companies like Adobe claim the rights to use artwork created using their software to train AI systems, raising concerns about the future of copyright protection in creative fields.
Adapting to Change: How Game Artists Can Thrive
While the outlook might seem grim, it’s important not to lose hope. The key to navigating the rapidly changing landscape of the gaming industry is adaptability. Here are some strategies for aspiring game artists and industry professionals to consider:
1. Embrace Lifelong Learning
One of the most important things game artists can do in 2025 and beyond is to continue honing their craft. While AI can automate certain aspects of game design, there are still many areas where human expertise is irreplaceable. Learning the fundamentals of 3D modeling, retopology, hard-surface modeling, and traditional drawing will keep your skills relevant. As AI technology evolves, those who can work alongside AI will be in high demand.
2. Consider Alternative Educational Paths
In today’s rapidly changing industry, formal education in the form of college degrees may not always be the best route. While universities and colleges offer valuable experiences, they can also come with significant financial burdens. Instead, consider investing in more flexible, industry-relevant short courses that can provide you with the skills you need without the massive debt.
Platforms like Udemy, Coursera, and specialized game design schools can provide more up-to-date content, ensuring that you’re learning the latest trends and tools. You can also begin working on smaller projects or freelance jobs while learning, giving you hands-on experience as you go.
3. Focus on Indie Studios and Personal Projects
While many dream of working for large corporations like Sony, Disney, or Pixar, these companies often have hundreds or thousands of applicants for just a handful of positions. As a result, breaking into these organizations can be extremely difficult.
A viable alternative is to look at smaller indie studios or, better yet, start your own indie game studio. The rise of crowdfunding platforms like Kickstarter and the increasing ease of game development tools like Unity and Unreal Engine have made it more feasible than ever for small teams to bring their ideas to life. While this path isn’t easy, collaborating with like-minded individuals and working on creative projects offers a much greater sense of control and fulfillment.
4. Learn to Work with AI
While some artists may choose to avoid using AI altogether, understanding how AI works can be an asset. AI will be a part of the industry whether we like it or not, and learning how to use it to your advantage will help you stay ahead of the curve. Even if you choose not to rely on AI, understanding its capabilities and limitations can help you integrate it into your work when necessary.
5. Adaptability Is Key
As Bruce Lee famously said, “Be like water.” The key to thriving in the gaming industry, especially as we head into 2025, is adaptability. Whether you’re working with AI, embracing new technologies, or finding innovative ways to collaborate with others, being flexible will give you the best chance for success.
Looking Ahead: The Future of Gaming
While the gaming industry faces challenges, it also presents vast opportunities. New technologies like AI, virtual reality, and cloud gaming could revolutionize the way games are developed and played. With the right mindset, game artists and developers can harness these technologies to push creative boundaries and create new, exciting experiences for players.
The road ahead won’t be easy, but with persistence, adaptability, and a willingness to learn, it’s possible to not only survive but thrive in the evolving world of game development. The key is to take control of your future, make strategic decisions, and stay focused on your passion for creating games.
What are your thoughts on the current state of the gaming industry? How do you plan to navigate these changes in 2025 and beyond? Let us know in the comments below!
