Layoffs, AI, and next-gen: what 2,600+ game professionals told GDC this year

The Game Developers Conference’s State of the Game Industry: November 2026 report surveyed more than 2,600 professionals on layoffs, generative AI, and next-generation development. Released late in the year for the first time, the report highlights persistent adversity in the industry despite developers’ enduring passion for game creation. Findings include continued layoffs, with some workers reporting multiple separations over two years, and a growing reliance on co-development services among 45 percent of studios.

Generative AI is receiving measured acceptance, with many respondents open to its use in select areas while excluding creative and player-facing content. The report also examines studios’ preparations for upcoming next-gen consoles, including PlayStation and Xbox’s "Project Helix," reflecting broader industry adaptation to new hardware cycles. A dedicated Labor section explores the mental health and job security impacts of overtime, crunch, and layoffs on developers.

The expanded Labor section underscores the human cost of industry pressures, detailing how overtime and layoffs are affecting mental health and job stability. Respondents provided firsthand accounts of repeated layoffs and the emotional toll of unstable employment. Co-development’s rise to 45 percent usage signals a strategic shift toward shared development resources to manage costs and risks.

GDC and Game Developer, sibling organizations under Informa Festivals, released the report ahead of their annual conference. The free report includes statistics, respondent quotes, and data visualizations, offering a comprehensive look at the industry’s current challenges and trends. The findings are intended to inform developers, studios, and policymakers navigating an evolving landscape.