As the gaming world marks the 13th year of GDC’s State of the Game Industry report, its latest iteration paints a mixed picture of progress and setbacks, optimism and frustration.

The report surveyed over 3,000 developers from 86 countries across six continents, offering a global view of the industry. Below, we’ll roundup some of the report’s key findings.

The gaming industry saw widespread layoffs in 2025, affecting 41% of developers. This marks a sharp increase from 2024, when 35% of respondents reported being impacted by layoffs, compared to 41% this year. Alarmingly, only 43% of developers now say their companies have avoided layoffs, down from 53% last year.

The reasons cited for these job cuts range from restructuring and declining revenue to market shifts. However, 19% of developers reported that no reason was given at all. Developers’ frustrations are palpable, with blame attributed to factors like post-COVID overexpansion, rising production costs, and poor leadership. As one respondent noted, “The question isn’t if layoffs will happen—it’s when.”

Layoffs have particularly impacted certain roles, such as game narrative jobs, which saw their workforce shrink significantly despite growing demand for storytelling in games.

Beyond this, 58% of developers remain concerned about potential future layoffs, mirroring sentiments from last year’s report. For some, however, the concern has already become reality, with many “N/A” responses reflecting developers who are currently unemployed.

A bright spot in this year’s report is the growing diversity among game developers.

Women and non-binary individuals now make up 32% of the workforce, compared to 29% last year and 24% in 2022. Similarly, LGBTQ+ representation continues to rise, with 25% of developers identifying as LGBTQ+, up from 21% in 2024. Among developers aged 18-24, 43% identify as LGBTQ+, highlighting an impressive leap for representation.

Racial and ethnic diversity has also improved, albeit incrementally. Developers identifying as East, South, or Southeast Asian now make up 16% of the workforce, while Hispanic or Latino developers represent 10%, and Black, African, or Caribbean developers account for 3%. These shifts contributed to a decrease in the number of respondents identifying as White or Caucasian, from 64% in 2024 to 59% this year.

The structure of the game development workforce is evolving. Solo developers now account for 21% of respondents, up from 18% last year. This marks a significant trend: there are now more solo developers than those working at studios with over 500 employees. Meanwhile, the share of developers at AAA studios has decreased from 18% in 2024 to 15% today, reflecting broader shifts in the industry’s landscape.

Newer developers are more likely to work in game design, while experienced professionals gravitate toward production and team management roles. The percentage of developers with 10 years or less of experience rose to 60%, up from 56% last year, further highlighting the industry’s influx of fresh talent.

Generative AI has become a prominent yet polarising force in game development – as it has in most industries.

While 52% of developers report that their companies use generative AI tools – up from 31% last year – enthusiasm for the technology appears to be waning. Only 9% of developers believe their companies are interested in generative AI, down from 15% last year.

Meanwhile, 27% say their companies have no interest in using it, a notable increase from 18% in 2024.

Concerns about generative AI include ethical issues like intellectual property theft, energy consumption, content quality, and biases. Job displacement remains a significant worry, with 51% of developers expressing serious concerns about the technology’s implications.

Interestingly, older developers are more likely to use generative AI tools than their younger counterparts, underscoring a divide in adoption trends.

“Game development is supposed to be art and an expression of one’s imagination, not an AI generated concept with no real thought process,” said one anonymous developer in the survey.