A Life Without Layoffs: The Key to Sustainable Game Development

Despite the common perception that layoffs are inevitable in the gaming industry, Jesse Schell, a seasoned game designer and CEO of Schell Games, believes that they can be avoided. In a recent discussion, Schell shared his strategies for building and maintaining a sustainable business, even in uncertain times. Schell attributes the prevalence of layoffs in the industry to the cyclical hiring and firing practices that breed distrust and fear among employees. He argues that this approach not only harms morale but also weakens team dynamics over time. Instead, Schell prioritizes people over profits, recognizing that the longer people work together, the stronger they become. To achieve this, Schell Games has adopted a unique approach, combining work-for-hire projects with its own intellectual property (IP). This allows the studio to mitigate risks and ensure a stable workforce, even when one project is not performing well. Schell emphasizes that this approach requires careful planning, respect for the difficulties of estimating and planning, and a focus on agile development. Schell also highlights the importance of building strong relationships with employees, rather than relying on freelance or contracted staff. This approach, he believes, is particularly crucial in innovative and complex projects, where communication and trust are essential. The studio has faced its share of challenges, including the 2012 recession, but has managed to navigate these difficulties by prioritizing stability and careful management. Schell notes that this approach has allowed the studio to maintain a stable workforce, even in times of uncertainty. Reflecting on industry trends, Schell attributes the recent surge in layoffs to the aftermath of the pandemic, which led to a surge in remote work and a subsequent increase in salaries and hiring. However, he believes that this "boom and bust" mentality is not unique to the gaming industry and that layoffs are often the result of poor risk management and a lack of prioritization of people. Ultimately, Schell advises studio heads to prioritize their people, think about the worst-case scenario, and have a backup plan in place. By doing so, they can minimize the risk of layoffs and build a sustainable business that thrives even in uncertain times. Schell's approach is rooted in his belief that people are the most valuable asset in any business, and that prioritizing their well-being and stability is essential for long-term success. As he notes, "If you care about prioritizing people, you can make it work."