A Layoff-Free Approach to Game Development

According to Jesse Schell, a seasoned game designer and CEO of Schell Games, layoffs are not inevitable in the gaming industry. In fact, he believes that the cyclical hiring and firing practices commonly seen in the industry can foster distrust, fear, and weakened team dynamics. Schell Games has managed to avoid layoffs for 22 years, and Schell attributes this to his studio's focus on building a sustainable business and prioritizing people over profits. By maintaining a mix of work-for-hire projects and original IPs, Schell Games can mitigate risks and ensure a stable future for its employees. This approach has allowed the studio to weather difficult times, including the 2012 recession, without resorting to layoffs. Schell emphasizes the importance of respecting the difficulties of game development, estimating and planning, and fostering a positive work environment where employees want to stay long-term. He also stresses that agile development is crucial in responding to changes and uncertainties in the industry. While Schell acknowledges that belt-tightening may be necessary during challenging periods, he believes that prioritizing stability and taking a thoughtful approach to management can help studios avoid layoffs. Reflecting on industry trends, Schell notes that the recent surge in layoffs is partly a result of the pandemic and the subsequent Great Resignation, which led to increased hiring and salaries. However, he argues that layoffs are often a result of poor risk mitigation and a lack of consideration for all possible outcomes. Ultimately, Schell advises studio heads to prioritize their people, think about the worst-case scenario, and have a backup plan in place to minimize the need for layoffs.