EA also logged a record $1.7 billion from live-service net bookings in the last quarter of 23rd, with much of this coming from EA Sports FC and its latest release in September.
The video game industry has been hit hard with layoffs in 2024, resulting in an estimated headcount reduction of 5,900. The most significant cuts were made by Microsoft and Activision Blizzard.
The video game industry has been hit hard with layoffs in 2024, resulting in an estimated headcount reduction of 5,900. The most significant cuts were made by Microsoft and Activision Blizzard. EA also logged a record $1.7 billion from live-service net bookings in the last quarter of 23rd, with much of this coming from EA Sports FC and its latest release in September.
The gaming industry has experienced a recent wave of layoffs, with upwards of 12,000 jobs evaporating during the past calendar year.
Laid-off gaming industry workers have expressed disappointment and resentment over losing their livelihoods due to the way companies framed the decision as necessary for maintaining focus on players.
The esports business model has been criticized for running before it could walk, with costs acceptable when borrowing was cheap but not necessarily sustainable in a correction.
Unions can protect workers' rights and interests, which is lacking in the gaming industry due to its anti-union stance of leadership.
Esports never truly managed to become a profitable industry independent of the broader gaming world and has contracted significantly with January 2024's layoff at Activision Blizzard accounting for 83% of their esports staff.
The primary value of esports is not to make money but to act as a marketing channel for game developers' core products, which limits its potential sustainability.
There are still companies across the esports landscape making good-faith efforts to build the space in a more sustainable way with varying levels of success.
Competitive gaming has the potential to enter the cultural mainstream but many employees laid off from esports companies will inevitably have to look elsewhere for work.
The end result is that careers in esports are looking less viable than ever and not seen as a sustainable career path.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(80%)
The article is deceptive in several ways. Firstly, the author claims that esports are no longer a viable career path due to recent layoffs and lack of sustainable revenue. However, this statement contradicts other information provided in the article such as Activision Blizzard's 83% reduction in esports staff being only one example of companies making good-faith efforts to build the space in a more sustainable way. Secondly, the author uses quotes from an anonymous source without disclosing their identity or affiliation with any gaming industry company. This lack of transparency makes it difficult to verify the accuracy and credibility of this information.
The article claims that esports are no longer a viable career path due to recent layoffs and lack of sustainable revenue, but provides an example of companies making good-faith efforts to build the space in a more sustainable way. This contradicts the author's initial statement.
The author uses quotes from an anonymous source without disclosing their identity or affiliation with any gaming industry company.
Fallacies
(80%)
The article contains an informal fallacy known as 'appeals to authority'. The author cites the opinions of Jacob Wolf and a former Riot Games staffer without providing any evidence or reasoning for their claims. Additionally, there is no formal fallacy found in this analysis.
Bias
(85%)
The article discusses the recent layoffs in the gaming industry and how they have affected careers in esports. The author uses quotes from experts to provide insight into why esports may not be a viable career path for those looking to subsist off of more than just passion. The article also touches on issues with unionization within the gaming industry, which could impact future job opportunities.
Site
Conflicts
Of
Interest (50%)
Alexander Lee has a conflict of interest on the topic of esports and gaming industry as he is an employee of Riot Games. He also has a personal relationship with Ivy Liu who works for Activision Blizzard.
Author
Conflicts
Of
Interest (50%)
Alexander Lee has a conflict of interest on the topic of esports and gaming industry as he is an author for Digiday.com which covers news related to digital media and marketing including esports.
The videogame industry has seen mass layoffs in the past year, with an estimated total of 16,000 people laid off in 23 and nearly 6,00 by the end of January.
Each dot on a graphic represents one person laid off at some point in the last 13 months as of January
The layoffs have been attributed to studio consolidation, tightened margins after an early Covid-era boom, and corporate greed.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(70%)
The article does not provide any direct quotes from the authors that are deceptive. However, there is a strong implication of sensationalism and emotional manipulation in the way that layoffs within the gaming industry are presented as an 'apocalypse' for those affected.
Fallacies
(85%)
The article contains several examples of appeal to authority fallacies. The authors cite statistics and quotes from various sources without providing any context or analysis. They also use loaded language such as 'aberrant' and 'spin off' which are not objective descriptions but rather opinions.
2023 was higher than 2022{s estimated 8,500 total layoffs
, this is the first time former Blizzard senior environment artist Molly Warner has been laid off in her 10 years in the industry
The game industry needs a strong union to keep this from happening again
Bias
(100%)
None Found At Time Of
Publication
Site
Conflicts
Of
Interest (50%)
Ted Litchfield and Wes Fenlon have a conflict of interest on the topic of layoffs in the gaming industry as they are part owners of Take-Two Interactive which was acquired in 2021. They also report on Blizzard's unannounced survival game team, Visual Concepts Austin, and their own company.
Ted Litchfield is a co-founder of Take Two Interactive and Wes Fenlon has written about the company in the past.
Author
Conflicts
Of
Interest (50%)
Ted Litchfield and Wes Fenlon have a conflict of interest on the topic of layoffs in the gaming industry as they are part of Blizzard Survival Game team which was announced unannounced. They also work for Take-Two Interactive who acquired Visual Concepts Austin, another company affected by layoffs.
Ted Litchfield and Wes Fenlon are members of the Blizzard Survival Game team that was recently announced.
The video game industry experienced significant layoffs in January 2024, with an estimated headcount reduction of 5,900.
Microsoft announced it would cut 10,000 roles across the company in January 23rd and Activision Blizzard employees reportedly comprise most of these cuts.
EA logged a record $1.7 billion from live-service net bookings in the last quarter of 23rd, with much of this coming from EA Sports FC and its latest release in September.
Take-Two Interactive also cut roles around the same time, defending it as something that would position them for another extended period of success.
Microsoft Gaming CEO Phil Spencer has expressed his own dismay over such heavy dependency on giant properties like Call of Duty.
The cancellation of a new Blizzard IP codenamed Odyssey was announced after Microsoft's layoffs in January 2024, with more than 100 people working on the project.
Rumors are emerging that past and upcoming Xbox exclusives may release on competitor PlayStation 5.
Bungie ended up cutting 100 roles near the end of 23rd as engagement in Destiny lapsed after being bought by Sony for $3.7 billion in 2022.
Square Enix was not interested in Eidos-Montral continuing the Deus Ex series after middling sales for its last entry in 2016, and instead assigned them to work on Marvel's Guardians of the Galaxy.
Embracer Group began significant restructuring efforts in 23rd after a $2 billion deal with Saudi Arabia's Savvy Games Group collapsed, resulting in layoffs at Eidos and the cancellation of a new Deus Ex title.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(80%)
The article is deceptive in several ways. Firstly, it presents the layoffs as a necessary cost-cutting measure when in reality they are also resulting in the cancellation of new projects and IP development. Secondly, it portrays these companies' reliance on live services as a positive thing when in fact it can lead to overreliance on established properties at the expense of fresh ideas. Lastly, the article presents Microsoft Gaming CEO Phil Spencer's comments about AAA publishers trying to use production scale as their new moat without providing any context or evidence for this claim.
`Microsoft Gaming CEO Phil Spencer has expressed his own dismay and worry over such heavy dependency on giant properties`
The headline states that layoffs are cutting costs but fails to mention that they are also resulting in the cancellation of new projects and IP development.
The article presents Microsoft's acquisition of Activision Blizzard as a positive thing when it is actually contributing to the problem by limiting their ability to create new IP.
Fallacies
(100%)
None Found At Time Of
Publication
Bias
(80%)
The article discusses the impact of layoffs on gaming companies and their reliance on live services to generate revenue. The author mentions specific examples of companies that have cut jobs in recent years, including Microsoft Gaming's decision to axe new projects due to a lack of employees. Additionally, the author highlights how some executives are concerned about the impact of relying too heavily on established franchises and IP.
Microsoft Gaming CEO Phil Spencer has expressed his own dismay and worry over such heavy dependency on giant properties.
Site
Conflicts
Of
Interest (50%)
Kaare Eriksen has a conflict of interest on the topic of layoffs in the gaming industry as he is an author for Variety. He also has a financial tie to Activision Blizzard through his coverage of their $69 billion deal.
Author
Conflicts
Of
Interest (50%)
The author has a conflict of interest on the topic of layoffs in the gaming industry. The article mentions that Activision Blizzard is cutting costs through layoffs and also discusses their $69 billion deal to acquire Microsoft's Xbox game studio.
The video games industry has been experiencing intense pain in the past 12 months with cancelled projects, closed studios and thousands of employees laid off. This period is likely to continue into 2025.
Companies are taking significant measures to change or cut what they're making and spending their money on due to a perfect storm of issues such as high costs, falling revenue, fierce competition and low investment levels.
The quality of the games being created contrasts against the headlines that suggest intense pain in the industry. There are more gamers today than there were five years ago.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(70%)
The article contains several examples of informal fallacies. The author uses an appeal to authority by stating that Nintendo is looking for new partnerships ahead of its Switch successor without providing any evidence or context about the reliability of this information.
> The past 12 months have been the bleakest I've seen in video games. <br> Cancelled projects, closed studios and thousands upon thousands of employees laid off, with few jobs available for them to step into. And this period of intense pain is likely to continue all year and into 2025.
The headlines contrast against the quality of the games that are being created, and the fact there are more gamers today than there were five years ago.
Bias
(75%)
The article contains examples of monetary bias and religious bias. The author uses phrases such as 'spent too much during the pandemic' and 'investment levels have plummeted', which suggest a negative view towards those who invested in the industry during this time. Additionally, the author mentions that Nintendo is looking for new partnerships ahead of its Switch successor, suggesting a focus on growth and expansion. However, there are no examples of political bias or ideological bias present in the article.
investment levels have plummeted
spent too much during the pandemic
Site
Conflicts
Of
Interest (50%)
Christopher Dring has a financial stake in the video games industry through his partnership with Nintendo. He also has professional affiliations with other companies and organizations that have a vested interest in the success of the gaming business.
Author
Conflicts
Of
Interest (50%)
Christopher Dring has a financial stake in the video games industry as he is an author for Gamesindustry.biz.
