State of the Game Industry: November 2026

One in three (34%) respondents have been laid off sometime in the past two years, increasing to 39% for those living in the United States.

We have been documenting game industry layoffs through our survey for the past three years. The rates have gone up every time, lining up with overall industry trends.

However, our survey shows a higher rate of increase than other models, suggesting that the survey reflects higher participation from people most affected by layoffs. While more weighted than aggregate employment data, this pool of approximately 900 laid-off game workers lets us dive deeper into their lived experiences.

Key Stats:

• 34% laid off in the past 24 months (39% in the US)
• 68% of AAA studio workers affected by layoffs in the past 12 months
• 27% of laid-off workers have sent 100+ job applications
• 54% of laid-off workers are still unemployed (59% in the US)

See how game professionals are navigating layoffs, and what's actually helping.

Sentiment holds steady this year, with growing nuance and support for non-creative uses of generative AI.

Overall, 40% of surveyed game industry professionals said they use generative AI tools as part of their job, up from 36% last year. Fifty-seven percent of AI adopters said they use the technology daily, more so among men (63%) and those in business operations and services (71%).

According to our survey, 55% of game industry professionals think generative AI is having a negative impact on the game industry, unchanged from last year’s 54%¹. Many said they see value in using gen AI tools for things like repetitive tasks, research, brainstorming, and early prototyping—but they are still concerned about the environmental impact, legal issues, job losses, and skill atrophy. There remains large opposition to using generative AI tools for creative or player-facing features.

Key Stats:

• 40% of game industry professionals use generative AI tools as part of their job, up from 36% last year
• 55% say generative AI is having a negative impact on the industry; 35% say the impact is mixed; 8% say it's positive
• QA and community support report the highest negative sentiment at 76%
• 62% of educators allow, encourage, or require students to use generative AI in coursework — but only 20% of students report actually using it

Learn where generative AI is actually earning trust in game development, and where it isn't.

Xbox and PlayStation are preparing new consoles for release in the next one to four years: 10% of respondents are planning their upcoming games for the next PlayStation, and 8% said theirs will be released on Xbox’s next console, nicknamed “Project Helix.” PC remains the top platform for respondents, with 81% developing their upcoming game for the platform.

Thirty-five percent of developers are currently using Unreal Engine (down from 42%) and 28% are using Unity (down from 30%). While both Unreal Engine and Unity were down, proprietary engines were up, increasing from 19% to 23%. Godot is also seeing some growth among indies: One-tenth (11%) of respondents currently work at indie studios using the open-source engine (up from 7%).

Key Stats:

• PC remains the top platform for upcoming games at 81%
• PlayStation 5 (or 5 Pro) leads next-gen console targeting at 45%, followed by Xbox Series X/S (37%), Steam Deck (32%), and Nintendo Switch 2 (29%)
• 21% of developers are already building for the unreleased Steam Machine
• 10% are building for the next PlayStation and 8% for Xbox "Project Helix"
• VR/AR/MR development dropped to 3% of respondents this year, down from 8% last year — and developer interest fell too, from 12% to 8%

See where developers are placing their next-gen bets, from PC to “Project Helix.”

Overtime is not restricted to developers — it may be more common for everyone else in the game ecosystem. Fifty-seven percent of game workers (those in marketing, business, training, research, and related fields) said they've worked more than 40 hours per week on average, compared to 44% of developers.

Two-thirds (65%) of their jobs have impacted their mental health — but their love for what they do runs deep: 86% say they get more fulfillment working in games than they would in another industry.

Key Stats:

• 57% of game workers average more than 40 hours/week, vs. 44% of developers
• 86% of developers and 87% of game workers have worked over 40 hours in a single week at least once this year
• 8% report mandatory overtime ("crunch"): Of those, 69% received no compensation, and 63% say it could have been avoided
• 65% say their mental health has suffered due to their job in the past 12 months
• 86% say they get more fulfillment working in games than they would in another industry
• 80% of US-based respondents support unionization of game industry workers

See what 65% of the game industry means when they say the job has taken a toll.

Three-fourths (75%) of studio workers said their companies produce premium games, while one-fourth (25%) make free-to-play games.

Digital downloads (91%) and physical copies (40%) remain the biggest forms of monetization for premium games, while free-to-play games rely more on paid in-game currency (65%) and paid in-game cosmetics (60%).

Half of respondents said their primary source of funding is self-funding, including 35% of AAA workers. This was followed by publishing deals or project-based funding (15%), co-development contracts (9%), and private investment (5%).

Forty-five percent of studio workers said their companies have hired co-development services for their most recent projects. In addition, 16% of studio workers (who aren’t co-dev) said their companies have offered or provided co-development services sometime in the past 12 months. Reasons why range from needing additional income streams to liking the challenge of working within someone else’s constraints.

Key Stats:

• 75% of respondents' companies produce premium games; 25% make free-to-play
• 50% of studio workers say self-funding is their primary funding source
• 70% of AAA workers' games cost $50+; 61% of younger indies' games cost under $20
• 45% of studio workers' companies have hired co-dev services for their most recent projects
• 16% of non-co-dev studio workers say their companies have offered co-dev services in the past 12 months, rising to 23% at older studios

See how studios are funding, pricing, and shipping games in today's market.