Riot Games, developer of League of Legends and Valorant, reportedly became the prominent new developer to start a wave of layoffs on Thursday. According to reporter Jacob Wolf, the layoffs will primarily affect the company’s recruiting, human resources, support and esports departments.
While full details on the scope and scale of the layoffs have yet to emerge, Riot’s move is unfortunately not unique to the company. Several major game developers (as well as tech companies) have announced significant workforce reductions in recent days, including Unity.
The most notable announcement so far has come from Microsoft, which announced the elimination of around 10,000 jobs in early January. While this downsizing affects many departments outside of the company’s video game divisions, social media posts indicate that Halo Infinite developer 343 Interactive has been hit hard by the layoffs. Other affected parties include Gears developer The Coalition, Bethesda and those at Xbox’s biggest brand.
While it’s true that pre-recession jitters triggered some of these moves, the data indicates that the video game industry is experiencing a period of moderate decline, below the all-time high in 2021. Analysts point to a variety of factors for this drop in sales. , including the end of the pandemic, delays to notable triple-A games, and bad economic news from big markets like China. However, some analysts believe that 2023 will be a year of recovery for the sector.
This article used as a source the writing by Steven T. Wright to the website GameSpot.
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