Gaming Industry Grapples with Layoffs and Funding Woes Amidst HR Challenges

Gaming industry struggles: layoffs, funding issues, HR challenges.
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    The gaming sector is experiencing a turbulent period marked by significant layoffs and a challenging funding landscape. Industry professionals gathered at the GamesIndustry.biz HR Summit 2025 to discuss these issues, highlighting the need for greater support from studio leadership and a more strategic approach to human resources. Meanwhile, veteran developers express frustration over the scarcity of investment, even for projects with proven teams and stable development.

    Key Takeaways

    • HR professionals are seeking more influence and support from executive leadership.
    • The industry faces a funding crisis, making it difficult for even promising projects to secure investment.
    • There’s a growing recognition of the need for interdisciplinary expertise and adaptability in the workforce.

    HR’s Call for Support Amidst Redundancies

    The GamesIndustry.biz HR Summit 2025 in London brought together over 60 industry leaders to address the growing instability in the gaming sector. A key concern raised was the lack of HR representation at the board level, with many HR professionals feeling that crucial decisions, such as hiring sprees or sudden downsizing, are often made without their input. Attendees expressed a desire for more dialogue between executives and HR departments to explore alternative solutions and ensure HR is viewed as a core business function rather than an afterthought.

    Discussions also touched upon the evolving nature of work, with sessions exploring the impact of AI on company culture and the importance of interdisciplinary expertise in navigating industry transitions. The summit underscored the need for HR to better communicate its successes and value to the wider organization and the media.

    Funding Freeze and Developer Frustration

    Adding to the industry’s woes, veteran game developer Greg "Ghostcrawler" Street of Project Ghost lamented the severe lack of available funding. Despite having a team with a proven track record, high morale, and a stable, well-received game in development, Street highlighted the difficulty in securing investment. He pointed to past "gigantic investments" that failed to pan out as a reason for the current cautious investment climate, which disproportionately affects smaller and mid-sized projects.

    Street’s sentiments echo those of other industry veterans who have expressed similar frustrations regarding the funding market in 2025. The collapse of the mid-budget gaming market continues to pose significant challenges, leaving many talented teams struggling to find the financial backing needed to bring their games to fruition.

    Sources