Understanding the Ongoing Reset in the Gaming Industry

The gaming sector is currently experiencing a profound reset, a theme that dominated the opening keynote at Gamescom Dev. The speaker, Amir Satvat, who recently transitioned from his role as Business Development Manager at Tencent to become a General Partner at 1Up Ventures, used the platform to dissect the forces reshaping the industry. Satvat is perhaps best known for establishing the ASGC, an organization dedicated to supporting job seekers within the gaming field.

In his extensive address, he examined the raw data behind the staggering wave of layoffs, the geographic migration of talent, the concentration of revenue among a handful of blockbuster titles, evolving employment patterns, and the strategic adjustments the industry must adopt to survive the present turmoil. He opened with a stark assessment of the layoff situation. In December, Satvat told GamesIndustry.biz that he anticipated roughly 7,500 redundancies in 2026, a decline from the estimated 9,200 in 2025. However, after witnessing the unprecedented scale of job cuts this year, he revised his forecast to 14,666—only slightly below the 2024 peak of 15,631.

By August 11, more than 10,140 layoffs had already been announced for the current year, surpassing the total number of redundancies recorded in the entirety of 2025. Despite the headline‑grabbing figures, the overall headcount in the gaming ecosystem has remained relatively stable over the past few years. Satvat referenced compelling research from the Game Industry Coffee Chat (GICC) group, which estimates that around 750,000 individuals are employed directly or indirectly in gaming—far higher than the numbers most reports cite. He attributed this under‑counting to a general lack of awareness about the scale of employment in China.

The takeaway, according to Satvat, is that "even with all these cuts, the industry has been net positive in terms of employment since 2022." Growth is modest—under 1%—but it is growth nonetheless. By contrast, the period before 2022 saw a surge of roughly 150,000 net jobs added between 2017 and 2021. A key trend over the last half‑decade has been a geographic shift. "Headcount is moving from essentially North America to virtually everywhere else," Satvat noted, driven not only by labor‑cost differentials but also by government incentives and the availability of talent in new regions.

Two‑thirds of the layoffs he has tracked have taken place in North America, amounting to about 25,000 positions—roughly 15% of the regional workforce. California bore the brunt, accounting for more than half of all layoffs over a 12‑ to 18‑month window.

Conversely, other parts of the world have experienced net job gains. The Asia‑Pacific region saw a 10% rise in available positions, largely fueled by a 12% increase in China.

Europe’s employment numbers have essentially plateaued, according to Satvat. One puzzling paradox is why layoffs are occurring while the industry continues to grow. Satvat explained that growth is now concentrated in an ever‑smaller pool of titles. "Fifty to sixty percent of revenue is generated by just the top twenty games," he said.

On mobile, user acquisition has become increasingly expensive, shifting focus toward monetizing existing players. On PC, a mere 79 titles account for 80% of total playtime. The headline numbers look healthy, but the deeper metrics reveal a more precarious picture. Satvat enumerated 21 pressures confronting the sector, ranging from post‑pandemic over‑hiring and shifting player habits to longer development cycles and soaring production costs.

The two he highlighted as most critical were discoverability challenges and the uncertainty surrounding artificial intelligence. "No one has a master plan for solving either of these issues, and failing to address them could undermine everything else," he warned. Nonetheless, he emphasized that the geographic transition remains the single biggest driver of change. Another striking observation was the explosion of game‑related academic programs in the United States.

Roughly 400 colleges now offer credentials in games and interactive media, and completions in these fields have quadrupled over the past 14 years. Yet, entry‑level opportunities are dwindling.

"There is only a 4% chance of landing a gaming job within a 12‑month period," Satvat stated, noting a global ratio of about five applicants per hire, which balloons to 11:1 in North America. Seniority dynamics are also tightening.

The average experience required for a given role has risen by three years, squeezing early‑career candidates who previously could secure positions with little or no experience. At the same time, opportunities for senior developers are shrinking; once a professional reaches the equivalent of 50 years of age or experience, the likelihood of finding a role drops back to 4‑5%. Regarding the categories of positions in demand, Satvat explained that the traditional "big four"—art and animation, engineering, production/project management, and game design—have historically comprised about 70% of openings.

However, game design has recently fallen out of that core group, supplanted by marketing roles. Meanwhile, demand for business intelligence, data, and analytics has risen, while writing, narrative, QA, and recruiting have seen their share of openings decline. Networking has become a decisive factor in hiring.

"You are twenty times more likely to get a job if you have any connection to the hiring manager or recruiter," Satvat asserted. He also encouraged candidates to secure even a year or two of experience, noting that doing so lifts the odds of securing another role within a year from 4% to roughly 30%.

Satvat outlined several structural shifts reshaping the video‑game landscape. Console revenue growth is increasingly derived from deeper engagement with existing customers—through premium releases, higher‑priced subscription tiers, and similar strategies—rather than from expanding the player base. Rising hardware costs will further constrain audience growth.

He predicts that the classic model of driving console sales through exclusive, graphically spectacular titles will soften. Instead, developers will focus on accessibility, recognizing that many consumers cannot afford high‑end hardware. China, meanwhile, is emerging as a powerhouse.

It contributed 42% of global PC‑revenue growth, and WeChat mini‑games boast over 500 million monthly active users. With more Chinese students entering college each year, the market will see an additional ten million potential PC users annually.

Satvat sees a dual opportunity: developers outside China can tap into a market whose tastes are not dramatically different from those elsewhere, while Chinese studios will intensify global competition. He cautioned that the sheer volume of studios in China may be transformative and disruptive over the next few years. When discussing growth prospects, Satvat highlighted user‑generated‑content platforms such as Roblox and Unreal Engine for Fortnite (UEFN).

However, he warned that revenue on these platforms is heavily concentrated among a tiny elite of creators. Competition is intensifying: new Steam releases reached roughly 12,000 in the first half of 2026, a 19% year‑over‑year increase.

Yet, only about 3% of those titles—approximately 600 games—achieved a peak concurrent user count of 100 or more, suggesting that the apparent flood of releases masks a more modest competitive reality. Funding conditions have also deteriorated.

Global games‑startup financing collapsed from $9.9 billion in 2021 to just $2 billion in 2023, with private‑equity and venture‑capital inflows falling from $12.1 billion to $2.7 billion. Satvat attributes part of this decline to a misalignment between investment vehicles and the inherently unpredictable nature of game development.

He recounted his experience at Amazon, where multiple MMOs were pursued simultaneously because they looked attractive on discounted cash‑flow models, whereas smaller, riskier games struggled to attract capital. A notable contraction is occurring in permanent AAA positions.

A few years ago, roughly half of tracked jobs were in AAA; today that share has slipped below one‑third, while external development and contracting roles now comprise about 10‑15% of openings. The remaining opportunities lie with indie studios, tool providers, and service companies.

Satvat believes the greatest potential resides in the middle ground between solo indie developers and massive publishers, as the industry’s power base shifts. He affirmed that AAA will continue to play a role—particularly for strong teams, iconic IPs, and sensible cost structures—but the overall mix of power is undeniably moving.

When asked about a return to “normal,” Satvat replied that a return to the old normal is unlikely. Instead, the industry is evolving toward an as‑yet‑undefined future. Player engagement has also transformed. Modern audiences, accustomed to short‑form social media content, find it challenging to invest in lengthy experiences.

Satvat urged developers to involve communities early in the development process, discarding the outdated notion of keeping a game "behind the curtain." Community feedback, Discord interaction, and streaming are becoming essential, even for single‑player titles. Pricing models are shifting toward lower price points—many games now sell for $30 or less, some even $10 or below. Satvat also called for better treatment of game workers, citing poor off‑boarding practices and a lack of ongoing professional development as factors driving talent away. He estimates that roughly 120,000 years of cumulative gaming experience have already left the industry since he began tracking data in 2022, and he views retaining that knowledge as a top priority.

Education reform is also on his agenda. He advocates for transparent communication to students about the slim odds of entering the gaming workforce and for curricula that equip them with transferable skills beyond gaming.

Over 60% of individuals assisted by ASGC this year secured employment outside the industry. Satvat sees smaller, tightly‑budgeted teams targeting niche audiences as a key component of the solution.

Such teams can be more agile, embrace external development, and focus intensely on customer needs. His strategic recommendations for the next wave of investment include: - Investing in large, engaged ecosystems that foster creation, participation, and lasting player relationships. - Supporting shorter, focused AA and indie titles that cater to players with limited time and disposable income. - Targeting growth regions such as APAC, Eastern Europe, and Latin America, where talent, cost advantages, and market expansion converge.

- Backing tools and service providers that empower smaller studios to compete effectively. - Prioritizing community‑centric approaches via Discord, live streams, and group chats, even for solo experiences. Satvat concluded that the industry’s future is not predetermined.

The choices made by developers, publishers, investors, and players now will shape the path forward. He outlined two less‑desirable scenarios: one where mature IPs are harvested by financial entities for extractive profit, and another he dubbed "small ball," where the market fragments into countless tiny entities driven by UGC and AI, making it harder for teams to achieve continuity and scale. His preferred vision is an industry composed of disciplined, smaller firms that can address the challenges he outlined, grow sustainably, and eventually expand as consumer demand persists.

By redefining success—shifting focus from blockbuster sales to profitability at modest revenue levels—the sector can cultivate a healthier, more resilient ecosystem for the years ahead.