MENA Newswire, SAN FRANCISCO: About one-third of video game industry professionals in the United States reported being laid off at least once in the past two years, according to the 2026 State of the Game Industry survey released by the Game Developers Conference. The survey found that 28% of respondents worldwide experienced a layoff over the past two years, rising to 33% among U.S.-based respondents. Half of participants said their current or most recent employer had conducted layoffs in the past 12 months, reflecting continued workforce instability across multiple parts of the sector.
Layoffs were reported more frequently at large studios than smaller ones. Two-thirds of respondents who work at AAA studios said their companies had layoffs, compared with one-third of respondents at indie studios. The findings were included in a wider report covering employment, tools, platforms, financing, and workplace issues across the game-making ecosystem.
The survey also included a smaller sample of students considering careers in game development. Three-quarters of students surveyed said they were concerned about future job prospects in the industry. The report said students pointed to a lack of entry-level openings, stronger competition for roles, and the potential for job disruption linked to automation.
Generative AI adoption and sentiment
Alongside layoffs, the report detailed the pace and perception of generative AI in the workplace. It found 36% of surveyed game industry professionals said they use generative AI tools as part of their job, with adoption varying by role. About 30% of respondents at game studios reported using AI tools, compared with 58% of respondents at publishing, support, and marketing or public relations firms.
The most commonly used tools were large language models, led by ChatGPT, which 74% of AI-using respondents said they used. The report also listed Google Gemini at 37% and Microsoft Copilot at 22%. The most cited uses were research or brainstorming (81%), followed by daily tasks such as writing emails (47%), code assistance (47%), and prototyping (35%).
The survey also measured overall views of generative AI’s impact on the industry. It found 52% of respondents said generative AI is having a negative impact, while 7% said it is having a positive impact. Negative sentiment was highest among respondents working in visual and technical art, game design and narrative, and game programming, according to the report.
Unionization and funding pressures
The report found strong support for labor organizing among U.S.-based respondents. It said 82% supported the unionization of game industry workers, with 5% opposed and 13% unsure. Support was higher among respondents earning under $200,000 per year, those who experienced a layoff in the past two years, and respondents younger than 45, and the report said no respondents aged 18 to 24 reported opposing unionization.
Membership levels were lower than stated support. The report said 10% of respondents reported being members of an industry-wide union such as United Videogame Workers-CWA, while 2% said they were members of a company union. It also found 62% of respondents said they were interested in joining a union.
On financing, the report said 35% of respondents primarily rely on self-funding for their games. Other primary funding sources cited included publishing deals or project-based funding (20%), co-development contracts (9%), and private investment or venture capital (5% each), while 16% said the question did not apply or they were unsure.
The report’s findings arrive ahead of the 2026 GDC Festival of Gaming, scheduled for March 9 to March 13 at Moscone Center. The event is expected to draw developers, publishers, and service providers to discuss industry conditions, tools, and career development as layoffs, AI adoption, and workforce issues remain central topics for many professionals.