3.2 Layoffs Rock Gaming Giants + SAG-AFTRA and AI Join Hands
Can the Gaming Industry Weather the Storm?
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💼 More Gaming Layoffs
The pixelated joy of our favorite virtual worlds is often built on a foundation of human effort. But lately, cracks have begun to show in that foundation, as a wave of layoffs washes over major players in the gaming industry.
What to Know. The gaming industry is facing a wave of layoffs, with major companies like Unity and Twitch, and developers like Gearbox-owned Lost Boys Interactive downsizing their workforces. Unity, the popular game engine developer, laid off 25% of its staff as part of a "company reset" aimed at refocusing on its core business and improving profitability. Twitch, the streaming platform, also announced layoffs, cutting 35% of its workforce due to a decline in revenue growth and the high cost of operating in Korea. And at Lost Boys Interactive, a “sizeable portion” of its staff have been laid off, adding to the over 900 jobs at various Embracer Group studios lost since last year. The layoff waves just don’t stop: Bossa Studios eliminated 19 positions; Playtika eliminated 300-400 positions; Discord cut 170 people . . . .
Why Is This Happening? The global economic downturn, coupled with changing market dynamics like digital distribution and subscription services, are contributing factors. Additionally, the pandemic era saw skyrocketing demand for games, leading to a hiring spree across the industry. A lot of that expansion appears to have been overzealous, and these layoffs are corrective, with publishers and studios adapting to new economic realities by streamlining operations.
When Will It End? Unfortunately, probably not anytime soon. 2024 is likely to remain a bumpy ride for workers in video games, much like 2023 was, with whispers of more major downsizing echoing until the industry finds its footing again. Economic headwinds, changing market tides, and internal restructurings could keep the axe hanging above some studios' heads throughout the year.
🤖 SAG-AFTRA’s AI Deal
The curtain has risen on a new act in the video game industry, but the spotlight is casting long shadows of controversy. SAG-AFTRA, the bastion of actors' rights, has inked a pact with AI voice titan Replica Studios, opening the door for digital echoes of human performances in video games.
What to Know. The agreement outlines compensation for actors whose voices are digitally replicated. Under the agreement, actors are entitled to compensation based on the duration and scope of their voice being used. For example, a prominent character voiced by a well-known actor would command a higher fee than a minor background character voiced by a newcomer. Notably, a developer’s license to use any actor’s voice expires after just one year, requiring renegotiation and renewed compensation to continue using it. This ensures actors retain control over their digital counterparts and have the opportunity to benefit from ongoing usage. These terms exist alongside safeguards against unauthorized use, addressing concerns about potential misuse of AI, such as creating deepfakes.
The Controversy. Touted by some as a revolution in storytelling, the deal has triggered an earthquake of dissent among countless actors, unleashing a torrent of questions about ethics, job displacement, and the very soul of creativity in the AI age. Despite SAG-AFTRA's claims of collaboration, many vocal actors feel betrayed by the Replica Studios deal, fearing it was negotiated in the shadows. Voices like World of Warcraft's Andrew Russell, Persona 3's Shelby Young, and even industry titan Steve Blum blast the agreement as rushed, poorly-consulted, and potentially catastrophic for their livelihoods. The specter of AI-generated replacements looms large, threatening to undercut their careers and devalue their artistry. Transparency in data use and fair compensation for AI-driven performances are just two of the ethical concerns fueling an avalanche of anxieties regarding job security, exploitation, and the very future of human voice acting in the face of this new technology.
Who Is Replica Studios? Replica Studios is a Vancouver-based company developing AI-powered voice actors. They claim to be building the world's greatest library of these actors and want to help people tell their stories through them. Whether you're a kid building your first experience in Roblox, a game developer building the latest metaverse, or a film director creating the next viral hit, Replica Studios says they can “help provide the best voices for your project.”
AI Integration Is Inevitable. The potential of AI is undeniable, and AI tech’s integration into video games and video game development is inevitable and will impact countless people, whether you like it or not. However, the notion that it will replace a significant portion of human jobs might be overly simplistic.. While repetitive tasks in development may see increased AI handling, creativity, innovation, and the human touch remain irreplaceable. The future of game development likely lies in human-AI collaboration, leveraging AI's efficiency to unleash developers' true potential. It's a complex dance, not a job-stealing stampede. Brace yourselves for an evolving landscape where pixels and algorithms intertwine, but remember, the heart of gaming will always beat with human ingenuity.
🔥 Quick Hits
A Glowing Start. Two games are coming out this week to glowing critic reviews. Prince of Persia: The Lost Crown is releasing Jan 18 and is currently sitting at 96% recommended. Meanwhile, The Last of Us Part II Remastered is releasing Jan 19 and has also earned a 96% recommended score. Both are must plays.
DICE Awards. While it missed out on top honors at The Game Awards, Insomniac Games’ web-slinging sequel, Spider-Man 2, is swinging back into the spotlight with a whopping nine nominations at the upcoming DICE Awards. Fellow critically acclaimed titles Alan Wake 2 (8 nominations) and Baldur’s Gate 3 (7 nominations) aren’t close behind. All three of those titles are nominated for GOTY, along with enchanting indie adventure COCOON and the highly anticipated open-world epic The Legend of Zelda: Tears of the Kingdom. The DICE Awards will be held on February 15th, 2024.
Ubisoft+ Changes. Ubisoft is renaming their subscription offerings. Ubisoft+ Multi-Access and PC Access will now become Ubisoft+ Premium ($17.99/mo.), offering day-one new releases and early access where applicable, alongside premium editions, monthly rewards, and more. Ubisoft is also introducing a new tier: Ubisoft+ Classics ($7.99/mo.) on PC, a curated selection of popular back-catalog and live games. The announcement was met with bewilderment by a lot of the gaming community., with many arguing that $17.99 is just too steep a price to pay for content from a single publisher.
More DCU Games. WB Games is ramping up production of superhero games, confirming the development of multiple tie-in video games set within the DC Universe. DC Films chief James Gunn describes these unannounced titles as “AAA games.” This news is exciting, but also somewhat of a mixed bag. While WB Games has seen recent successes – notably, with Hogwarts Legacy – it hasn’t always been consistent in developing AAA-quality games. If recent previews and feedback over Suicide Squad: Kill The Justice League are accurate, for example, that title might be in for a rough ride critically and commercially.
Sega Revivals. Rumor has it that three more classic Sega titles are getting the revival treatment, joining the seven already rumored to be in the works. The news comes from industry insider Jeff Grubb, who said on his podcast that the three additional games up for revival are currently under wraps, but speculation is already running wild. Some potential candidates include Alex Kidd, After Burner, House of the Dead, OutRun, Super Monkey Ball, Altered Beast, Eternal Champions, and Kid Chameleon.
👁 What to Watch
Xbox will host its second annual Developer_Direct on January 18, 2024 at 12PM PT, 3PM EST, 8PM GMT. Xbox promises a “big day for the Xbox family” and has announced that it “will share new, extended gameplay and developer insights for the upcoming Indiana Jones game, Avowed, Ara: History Untold, and Senua’s Saga: Hellblade II.” What I expect to see from these titles:
Indiana Jones will have its title revealed - it’s rumored to be Indiana Jones and the Great Circle. Recent reports suggest we may get a release in 2024, but Todd Howard has also suggested the game is only roughly halfway through its development journey. I’d love to be wrong, but conservatively, I’m expecting a title reveal and a 2025 release window to be announced.
Senua’s Saga: Hellblade II will be a major focal point and will finally get a firm release date. Rumor’s are circling that that release date is May 21, 2024.
Similarly, Avowed will have its time to shine and will also get a firm 2024 release date. We already know that the game has a 2024 release window; expect that to be narrowed down to a date in October or November, following the pattern of developer Obsidian Entertainment’s previous games.
Same story with Ara: History Untold. Xbox wants to get ahead of Civilization 7 with this turn-based grand strategy game from Oxide Games (made up of a lot of former XCOM and Civilization developers). The game originally had a projected release window in 2023, and it might release sooner rather than later, probably in the first half of 2024.
What about games not mentioned by Xbox? Will there be any surprises?
Gears of War Collection. There’s a lot of speculation that the long-rumored Gears of War Collection is readying for release with a final build in the hands of a QA team. If these rumors are true, the Gears Collection could be the stealth release Xbox fans are hoping for from the showcase.
Starfield. Starfield is getting its biggest update since launch this week. We know that it is getting a Shattered Space DLC relatively soon, and the Developer_Direct seems like a good place for Bethesda to show its cards.
👀 Game Dev Moves
I hope that every employee impacted by recent layoffs falls upward, and I'll be highlighting some opportunities in game development here every week.
Rockstar Games is hiring a VFX Gameplay Programmer in Andover, MA (On-site).
Major League Baseball is hiring a Producer, Games & VR in New York, NY (Hybrid).
Respawn Entertainment is hiring a Gameplay Engineer (Apex Legends) in Los Angeles, CA (Remote).
🕹 Upcoming Games
New game releases for the week ahead - January 22 to January 28.
Howl [PS5, XSX] – January 23, 2024
Enshrouded [PC] – January 24, 2024
Apollo Justice: Ace Attorney Trilogy [PC, PS4, XBO, Switch] – January 25, 2024
Go Mecha Ball [PC, XSX, XBO] – January 25, 2024
Like a Dragon: Infinite Wealth [PC, PS5, XSX, PS4, XBO] – January 26, 2024
Tekken 8 [PC, PS5, XSX] – January 26, 2024
View all of the upcoming video game release dates (including DLC) for PS5, Xbox Series X, PC, Nintendo Switch, and more, over on VSG’s release calendar.
That’s all for this week. Early Access will be back in your inbox next Wednesday.
Thanks for reading,
Josh
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