Mass layoffs happen for all kinds of reasons, be it because of a bad financial bet, a failed game, a deal falling through, poor planning, or any number of other things. But when they do, human beings find their lives upended in response.
I really wonder whats driving all these game industry layoffs? Some of these layoffs are from really successful studios making popular games. So what gives?
I think at least part of it was the COVID games boom which led to many companies over-hiring, which seems to have proved unsustainable now that the bubble period is over.
It shows investors that the company is reeling in their spending to become more lean, leading to the perception of better profits. You’ll notice that after most layoffs the share price increases.
Remember, the only product that’s important to publicly traded companies is good investor sentiment, everything else is secondary.
I really wonder whats driving all these game industry layoffs? Some of these layoffs are from really successful studios making popular games. So what gives?
I think at least part of it was the COVID games boom which led to many companies over-hiring, which seems to have proved unsustainable now that the bubble period is over.
It shows investors that the company is reeling in their spending to become more lean, leading to the perception of better profits. You’ll notice that after most layoffs the share price increases.
Remember, the only product that’s important to publicly traded companies is good investor sentiment, everything else is secondary.