The Games Industry Outlook for 2024

The games industry has faced significant challenges in 2023, including widespread layoffs and studio closures that have impacted thousands of developers worldwide. However, as the new year approaches, there are reasons to be optimistic about the industry's growth and development. Despite the recent setbacks, projections for 2024 look promising, with several exciting game releases and technological advancements on the horizon. The industry has been surprised by the mainstream success of games like Baldur's Gate 3, which has won Game of the Year, and there are expectations that 2024 will bring even more surprises and innovations. Many companies are taking steps to improve their work environment and culture, with some applying for awards like the GamesIndustry.biz Best Place to Work Awards, and others adopting new working patterns, such as a 4-day work week, to boost morale and productivity. The use of AI in game development is also expected to become more prevalent, with potential applications in areas like procedural generation and personalized storytelling. The upcoming year is likely to see the launch of several highly anticipated games, including Final Fantasy VII Rebirth, Obsidian's Avowed, and Little Nightmares III, as well as the emergence of new technologies and trends, such as cloud gaming and cross-platform play. While there are still challenges to be addressed, including the ongoing skills shortage and the need for greater diversity and inclusion, the industry is making progress and there are reasons to be optimistic about the future. The growth of initiatives like the Women in Games Individual Ambassador programme and the Education Ambassador programme is helping to promote diversity and inclusion, and the increasing allyship from men is also a positive development. The launch of the Empower Up platform, a joint venture between Amiqus and Ukie's #RaiseTheGame, has underscored the industry's commitment to EDI and authenticity. As the industry looks to the future, there are expectations that 2024 will be a year of growth, innovation, and positive change, with the potential for new technologies, business models, and trends to emerge and shape the industry's development. The US economy's resilience and the expected reduction in interest rates are likely to have a positive impact on the industry, with increased investment and M&A activity expected in the second half of 2024. Overall, while there are still challenges to be addressed, the games industry has reason to be optimistic about the upcoming year and the opportunities that it will bring.