We all know where we are right now. The game industry is going through one of its most challenging chapters. Budgets are ballooning, production timelines are harder to predict than ever, and the fear of layoffs has become part of the daily reality for developers and artists alike.
To better understand how studios are navigating these pressures, we spoke with Jason Millena, Executive Creative Director at Devoted Studios.
With over two decades of experience, Jason has helped ship a wide range of titles across genres and platforms. His past work includes Lord of the Rings mobile games, Hunger Games, Legacy of Zeus, Bitizens, RuneScape Mobile, and several AAA projects for Disney IPs.
Shipping more, alongside industry demands, with fewer people, less time, and tighter budgets is a challenging task.
Things are tough, and we’re all feeling it.
Game development has become more expensive, harder to plan, and less stable than ever before. Studios are under pressure to move fast, save money, and make smart decisions, all while trying to avoid burnout and layoffs.
According to this year’s GDC State of the Industry survey, 11% of developers reported being laid off in the past year, with those in narrative roles taking the hardest hit — 19% of respondents in that field were affected. Business and finance roles saw the lowest reported layoffs at 6%, but even that number paints a concerning picture.
The ripple effects go even deeper: 41% of developers said they’ve felt the impact of layoffs in some way. That includes 29% who’ve seen their direct colleagues let go, and another 18% who’ve seen it happen to other teams. A small but sobering 4% said they were laid off due to full studio closures.
As for why these layoffs are happening? There’s no single answer. 22% said restructuring, 18% pointed to declining revenues, and 15% cited broader industry or market shifts. Strikingly, nearly 1 in 5 developers (19%) said they weren’t given any reason at all.
It’s a lot to take in, but before we get into how to fix it, let’s take a moment to map out the key challenges clearly. Only then can we talk about what a better path forward looks like.
Nearly 70% of developers said they’re trying to do more work with fewer resources. 45% are using productivity tools to move faster, and 24% are trying to get better results from their monetization and live ops budgets.
Some studios are also choosing to stay small on purpose. Around 20% said they’re staying lean to avoid big risks, like overhiring or taking on debt. 10% are avoiding hiring more people, 6% are not borrowing money, and 4% are even slowing down their growth just to stay safer in this uncertain market.
Shipping more, alongside industry demands, with fewer people, less time, and tighter budgets is a challenging ask. Tools can help of course, but they don’t fully solve bandwidth challenges. They also can’t solve the pressure of needing to deliver meaningful, high-quality content without burning out your team.
He explained that some studios are staying small on purpose, and that makes sense. “You avoid overhiring, you stay nimble, communications are more streamlined, and you protect your culture,” he said. “But a big tradeoff is capacity. You’ve got the ideas, you’ve got the quality bar, but you often need more hands to execute.”
According to Jason, this is where the right co-development partner can make all the difference.
“Co-development gives you that,” he said. “Not just as outsourcing, but as a true extension of your team. One that’s aligned with your goals, your priorities, and your style of working. It’s a way to keep your creative vision intact without compromising scope, quality, or sanity.”
He added, “It’s not about doing more for the sake of more. It’s about doing the right things, with the right people, while keeping your core team focused on what matters most.”
We’ve all seen the headlines. Restructures. Layoffs. Teams folding mid-project. Talent is being pushed out, and companies are struggling to retain expert contributors. Scaling up or down feels risky when no one’s sure what the next quarter will bring.
Over the past few years, the games industry has seen a sharp increase in layoffs, with 8,500 developers laid off in 2022, 10,500 in 2023, and projections showing 13,750 in 2024. Major companies like Embracer Group, Microsoft Game Studios, and Electronic Arts have all reduced their headcount significantly, contributing to the instability in the industry.
These layoffs are having ripple effects across the workforce, with many developers seeing their colleagues, or even entire teams, let go. This instability creates a constant cloud of uncertainty for those still working in the field.
“This uncertainty weighs on people,” said Jason. “It makes planning harder. You’ve got a roadmap to hit, but scaling up feels risky when the future’s unclear.”
As the game development industry navigates through rising costs, layoffs, and unpredictable market conditions, its future is being reshaped by three major forces that are transforming how games are made, played, and experienced. These forces are driving the industry forward, creating new opportunities, but also presenting new challenges.
As the game development industry navigates through rising costs, layoffs, and unpredictable market conditions, its future is being reshaped by three major forces that are transforming how games are made, played, and experienced. These forces are driving the industry forward, creating new opportunities, but also presenting new challenges.
| Massive online communities | Online communities have become an important part of the gaming experience. What started as small forums has now grown into massive global networks where players not only play but also create, share, and interact. |
| New competitors from outside gaming | Companies like Microsoft, Google, and even non-tech brands like Nike and Adidas are dipping their toes into the gaming industry. They bring with them vast marketing power, massive user bases, and fresh perspectives that challenge the status quo |
| Rapid AI experimentation | AI is revolutionizing game design by personalizing environments, driving NPC behavior, and enhancing player interactions. Developers are using AI to automate tasks, optimize mechanics, and even generate content, creating more immersive and dynamic experiences. As AI evolves, it’s set to redefine gaming by adapting to player behaviors, offering unique and personalized experiences each time. |
As Jason put it,
These shifts are exciting, but they’re also overwhelming when you’re in the middle of trying to ship something tangible. On the creative and design side, it becomes hard to balance focus with flexibility. Your instincts push you to lean into emerging trends, communities, new tech, and evolving platforms, but the day-to-day reality of development doesn’t always leave room for that level of experimentation.
Jason highlighted how the right co-development partner can shift the pace and potential of a project. “It’s not just about getting things out the door,” he said. “It’s about bringing in fresh thinking, exploring tools like AI in a safe way, or quickly prototyping ideas without pulling your core team away from mission-critical work.”
He continued, “In a space that’s moving this fast, having partners who can scale and shift with you isn’t just useful. It’s essential.”
At Devoted Studios, we’ve completely reimagined co-development. We don’t see it as a side service or just an add-on, but rather as a strategic solution to many of the challenges that game studios are facing today.
We know that the industry is evolving, and so are the needs of the studios and the talent. As projects grow more complex, the traditional model of relying on a single, in-house team for every stage of development is increasingly difficult to maintain. That’s why we’ve made co-development the cornerstone of how we work with our partners.
Instead of just plugging gaps when needed, we approach co-development as an ongoing collaboration, where we become an integral part of the team, bringing the right talent at the right time. This means fewer headaches for studios trying to predict every resource need and more efficiency in how games get made.
Our co-development model isn’t just about filling the talent gap, but we are bringing expert teams together in a way that optimizes production, reduces the pressure of deadlines, and gives both studios and developers more control.
| Problem | Devoted’s Solution | Devoted’s Role |
| Skyrocketing game development costs | Custom strike teams | We assemble lean, focused teams of specialists who are tailored for each phase of your project. These strike teams bring exactly what you need, when you need it, reducing overhead while improving quality and delivery. |
| Production volatility & unpredictable resource needs | Reinvented co-development model | We treat co-dev as a flexible, scalable workflow and not a last-minute plug-in. By working alongside internal teams from the early stages of production, we provide clarity around resourcing, improve visibility, and ensure alignment from concept to delivery. |
| Instability, layoffs, and scaling risks | Flexible talent engagement model | We understand how hard it is to plan long-term. That’s why our co-dev model supports flexible scaling which allows studios to ramp up quickly or reduce scope without layoffs. |
At Devoted, we understand these struggles because we work alongside studios facing them every day. That’s why our services are built not just to support your goals, but to adapt to your reality. We’re here to bring structure, clarity, and real support.
When you work with us, you gain visibility at every stage of production. You always know what’s happening, what’s coming next, and where your project stands. No surprises. No gaps in communication.
We focus on three core services that give studios the control, support, and speed they need:
We offer full co-development and game porting services, supporting projects from concept to launch and across multiple platforms. Our team works closely with you to build, refine, and adapt your game for new systems while keeping performance and quality top of mind.
We offer full game development support from idea to launch. Our team works closely with you to build great gaming experiences. Every project gets a custom plan, using our team’s creativity and experience to deliver quality results on time and within budget.
Devoted Studios works with a network of over 1,900 creative talents across the U.S. and worldwide. Our experienced art directors and producers lead each project from beginning to end, making sure everything runs smoothly and meets the highest quality standards.
We support everything from AAA titles to indie games on Steam, and we create both photorealistic and stylized content. Whatever your vision looks like, we have the skills, tools, and passion to bring it to life.
Our mission is to bring flexibility, visibility, and stability to game development. We do this by building custom strike teams—small, specialized groups of top-notch industry experts that can jump in at the right time and keep projects moving forward.
Leading these teams are our CTO, creative director, animation director, tech art lead, and VP of production. These are industry veterans with a history of delivering some of the most ambitious and successful titles in gaming. Their experience has helped shape AAA production standards, and they bring both deep expertise and consistent results to every project.
Our experts are involved at every stage of production, from early concept through final delivery. More than just supporting projects, they lead with strategy, clear communication, and hands-on problem solving, helping studios stay focused, flexible, and ready for anything.
The game industry is changing fast. Production is more complex, timelines shift quickly, and the fear of layoffs is a real concern. At Devoted, we don’t just respond to that reality — we’ve built a model around it.
As studios shift toward smaller, more agile teams, we meet them where they are. Our custom strike teams plug into any stage of development, bringing the exact skill sets needed to support, scale, and stabilize projects.
We offer more than just talent. We offer clarity around what’s next, visibility into upcoming work, and a structure that allows both studios and artists to plan with confidence.
With Devoted, you get the right people, the right process, and the flexibility to adapt — all without the chaos. And if you’re navigating complexity, shifting pipelines, or scaling up or down — you’re not alone.
You can scale with ease. And with Devoted, you don’t have to go it alone.
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