The organizers of GDC Festival of Gaming today released the results of the latest State of the Game Industry survey. The 15th State of the Game Industry Report features new data and analysis on the global video game industry based on the responses of over 2,600 game industry professionals, a 12% increase in respondents from the previous edition of the report.
The 15th State of the Game Industry reflects on an industry that continues to face tremendous adversity even as the love that game makers feel for their craft endures. While the report is typically released at the beginning of each year, this edition and reports going forward have been adjusted to release near year’s end, befitting the report’s reflections on the current state of the industry and a snapshot of the year. The complete report, which captures insights across labor realities, generative AI, development trends, and more, can be accessed at this link. Key takeaways are explored below.
The annual State of the Game Industry survey is published by the organizers of GDC Festival of Gaming, the world’s largest gathering of games industry professionals and the premier source of knowledge, learning, and expertise within the industry. Every year, across hundreds of lectures, panels, roundtable discussions, workshops, fireside chats, and more, GDC attendees engage with the latest challenges, opportunities, and innovations shaping the game industry, including topics and themes explored in the State of the Game Industry report.
In its 41st Edition, set for March 1-4, 2027 at San Francisco’s Moscone Center, GDC Festival of Gaming will offer more value, access, and choice with the introduction of the Business Hall, a purpose-built home for meetings and relationship-building, as well as an expanded range of pass options (including new, lower-cost tiers) giving attendees the access they need across four focused days. The new Business Hall accompanies the Festival Hall, attendees’ home for discovering games, demos, companies, tools, and technology. The festival is further decorated by both the 27th Annual Game Developers Choice Awards (GDC Awards; Tuesday, March 2) and the 29th annual Independent Games Festival (IGF; Wednesday, March 3), which jointly celebrate the industry’s creativity, artistry, innovation, and technical genius.
More of the Industry Is Using Generative AI; The Topic is Still Polarizing
40% of game industry professionals report using generative AI tools as part of their job, up four points from the previous survey. 57% of AI adopters use it daily. Usage is highest among those working at mobile-only studios (70%) and those working on free-to-play games (58%). Company policy tends to vary significantly by company size, with 27% of AAA workers feeling encouraged or pressured to use generative AI, compared to only 9% of indie studio workers.
Despite the industry’s increased adoption of generative AI, its use remains polarizing; 55% of respondents felt that it has a negative impact on games, which is consistent with 54% from the previous survey. Responses suggest that game industry professionals are forming nuanced stances on the topic. For instance, some respondents wrote that they see value in using generative AI tools for repetitive tasks, research, and prototyping, but others cited environmental, psychological, and societal concerns for their hesitation to use such tools. Others pondered whether generative AI could be an equalizer for marginalized and excluded groups struggling with cost, geography, or access.
Amidst Ongoing Layoffs, a Tough Job Market Awaits
One in three (34%) respondents have been laid off in the last 24 months, up from 28% in the previous report, and the number rises to 39% for U.S.-based respondents. Of the one-in-three, 68% were laid off in the past 12 months. Nearly half (49%) said their companies have conducted some form of layoffs in the past 12 months: 68% at AAA studios, 35% at older indie studios, and 14% at younger indie studios.
The percentages in this year’s survey are higher than in other recent publications; for example, Always Supporting the Games Community estimates that only 14% of U.S.-based game industry professionals have been laid off in the past 24 months. This suggests that the survey reflects higher participation from people most affected by layoffs, which gave GDC the opportunity to dive deeper into their lived experiences.
Over half (54%) of those laid off have not found new employment. 62% have applied for 20 or more jobs, while 27% have applied for 100 or more. 21% of overall respondents are unemployed, up 8 points from the last report (13%). 9% of re-employed respondents have left the game industry, while 4% have started their own companies or studios.
Co-Development Is on the Rise As Teams Shrink and Funding Tightens
Open responses from those surveyed show a funding landscape that is reluctant and shrinking, forcing more studios to be entirely self-funded. 50% of respondents say their company uses self-funding as the predominant source of operational funding, compared to only 15% through publishing deals.
Coupled with layoffs and studios seeking operational stability, contract work and co-development is on the rise. Nearly half (45%) of studios utilize co-development on their games, and 16% of studio workers said their companies have offered or provided co-development services in the past 12 months. Reasons range from needing additional income streams to enjoying the challenge of working within other teams’ constraints.
Next-Gen Development Is Getting Underway, As Switch 2 Interest Surges and VR Declines
10% of respondents are developing for the next PlayStation and 8% for Xbox’s “Project Helix.” PC (81%) remains the dominant development platform, and the figures for PlayStation 5 (45%) and Xbox Series X/S (37%) are consistent with the previous survey. Only 3% of developers reported working on a virtual, augmented or mixed reality game, down from 8% in the previous survey, but interest in developing for Nintendo Switch 2 has increased nearly 10 points to 47% since the last survey, with Steam Deck interest consistent at 38% (vs. 40% interested a year ago).
Unreal Engine remains the most popular engine for survey respondents at 35%, which is down from 42%. While it still leads Unity (at 28%, down from 30% in the last report), the gap has closed somewhat, and proprietary and in-house engines have climbed four points to 23% usage.
Though Passion Endures, Layoffs and Overtime Take a Toll on Mental Health
Love for games and the craft of making them remains crucial and prevalent in the industry. 86% report more fulfillment working in games than in other industries, and 66% tie their identity and self-worth to working in games.
However, industry members are working long hours. 86% of developers said they’ve worked more than 40 hours in a single week over the past year, and 46% reported working over 40 hours a week on average.
These hours and job instability are taking a toll on mental health. Two-thirds (65%) say their mental health has suffered because of their job; this proportion increases when looking at those who are currently unemployed (81%) and currently employed respondents who were laid off at some point over the past two years (73%).
More Respondents Are in Unions. For the Rest, Interest Is Falling.
15% of respondents are part of a union, up from 12% in the last report. While union membership is up and a large majority of the industry supports unionization, interest in actually joining one may be falling. While membership grew, overall sentiment and interest in unionization showed slight decreases:
- Overall Support: 80% of US-based respondents support the unionization of game industry workers (down from 82%).
- Interest in Joining: 55% are interested in joining a union, down seven points (from 62%).
- Non-Participation: 20% of respondents are not in a union and aren’t looking to join one.
For a complete look at the 15th State of the Game Industry Report’s findings, including additional statistics, quotes from respondents, and visual representations of the data, see the full report, available here.
In light of these learnings, GDC Festival of Gaming’s role in gathering the global industry for dialogue, learning, support, and inspiration is more important than ever. The conversation will continue at San Francisco’s Moscone Center from March 1-4, 2027. For a deeper look at the event, visit gdconf.com, or subscribe to regular updates via LinkedIn, Facebook, X, or BlueSky. Official photos are available via the GDC Flickr account.
About GDC Festival of Gaming
GDC Festival of Gaming is the world’s largest professional game industry event with market-defining content for programmers, artists, producers, game designers, audio professionals, business decision makers, and others involved in the development of interactive games and immersive experiences. GDC brings together the global game industry community year-round through events and digital media, including GDC Vault, GameDeveloper.com, Independent Games Festival, and the Game Developers Choice Awards.
GDC is organized by Informa PLC, a leading B2B information services group and one of the leading B2B Events organizers in the world. To learn more and for the latest news and information visit www.informa.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20261112824868/en/
Media gallery
