GDC's November 2026 industry report: 34% of respondents laid off in two years

GDC organizers have released The State of the Game Industry: November 2026, a survey of over 2,600 game workers. It covers generative AI, layoffs, next-gen development and more. The report normally appears at the start of the year. This edition and future ones will come out near year's end instead.

Layoffs are the headline. Game Developer reports that 34 percent of respondents were laid off in the last 24 months, rising to 39 percent among US respondents, a sharp rise since the last report. GDC notes that the results reflect higher participation from people affected by layoffs, particularly in the US. Among US respondents, full-time employment fell from 59 percent last year to 50 percent. Those currently unemployed rose from 13 percent to 21 percent.

On company-level layoffs, 49 percent of respondents said their company had laid people off over the last year, and 55 percent in the US. The figure was 68 percent for AAA studios, 14 percent for younger indie studios and 35 percent for older indie studios. The top reasons cited were restructuring, financial difficulties and canceled projects. By role, quality assurance, marketing/PR, and visual and technical arts saw the most layoffs. Business operations and services were least likely to be hit.

Of those laid off, 79 percent said once, 17 percent twice and 3 percent more than that. Among respondents who found new jobs after a layoff, 68 percent are in a similar field. Nine percent said they have left the industry altogether.

Other findings: 45 percent of studios used co-dev services in the past 12 months. Respondents showed more openness to select uses of generative AI, though many say creative and player-facing content is still largely off the table. The report also covers how studios are preparing for the next PlayStation and Xbox "Project Helix". A newly expanded Labor section looks at overtime, crunch and layoffs, including their effects on mental health and job security.