Over the past three years, creatives working in video games have been relentlessly battered by wave after wave of industry layoffs, with tens of thousands of people losing their jobs.

There are multiple reasons behind it: overhiring when demand for entertainment spiked during Covid, a preference for investing in AI, and the global economic slowdown are just a few. It’s a complex picture, but one thing’s clear: it’s tough to be an artist working in games right now, and the past year hasn’t made it any easier.

“People who love this craft won’t give up on the industry so easily,” says Sandra Duchiewicz (Image credit: Sandra Duchiewicz)

Sandra Duchiewicz, a character and creature concept art specialist, is working as a freelancer. She describes the situation as “bleak”: there are fewer projects to work on, budgets and therefore pay are lower, and there’s a much larger pool of other artists competing for the same work. “It’s still doable, but only the most stubborn people stay in the industry,” she says.

Sandra tells us that all artists she knows are affected. Even those who aren’t hit directly by job losses still suffer, as repeated rounds of redundancies take their toll on morale.

During her time working in games studios, Sandra has seen artists burn out because lay-offs reduce headcount but not workload. The same amount of work still has to be done, just by fewer people. Yet even in a state of burnout, some people cling to their studio jobs because they don’t believe they’ll find another one.

A more hostile atmosphere in game art

As multiple rounds of layoffs create a sense of scarcity, tensions start to rise between staff. Sometimes a hostile atmosphere develops if newer employees are retained and long standing staff are let go – something that Sandra has experienced at two different studios.

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She says: “I’ve seen lighthearted people turn serious and toxic. I can’t blame them, though.”

“It’s either time to reinvent yourself, or keep hustling and improving your skill set,” Sandra says (Image credit: Sandra Duchiewicz)

Another source of strife is AI tools. “Those who call themselves ‘AI evangelists’ and are using this technology might think they’re getting ahead, but they are openly hated in the work environment,” says Sandra. “That sort of moral wound is a fast track to burnout.”

Furthermore, the fact that the axe has now been swinging for three long years is wearing people down and creating an attitude that Sandra calls “layoff fatigue”, where people are resigned to the situation.

She explains: “When you create a hostile environment where moral conflict happens daily, where the pride that comes from authorship and craftsmanship is removed, and also make people believe they can be fired at any moment, then artists eventually stop caring for the project they’re working on.

That apathy is a coping mechanism that’s eating the teams from the inside out. People get detached from the work, and passion for game development dies.”

The issue of skill development

Another worry is that with fewer junior roles, the cycle of training is being broken, which doesn’t bode well for the future. “I fear this might start a ‘skill atrophy’, because today’s teams are neglecting the responsibility of creating an environment that can spawn future experts and leaders in their disciplines,” says Sandra.

She has also noticed that fewer young people are interested in pursuing game development as a career, because they see how the passion of the generation above them has been exploited. “Gen Z is looking at us, and they don’t like what they see,” she says.

“I try to pick smaller companies now, to avoid situations where profitable companies are closed by investors,” says Michal Gutowski (Image credit: Games Workshop Limited 2016. Published by SEGA)

As the industry becomes less stable, many digital artists are branching out into more traditional forms of creativity as a back-up plan. Michal Gutowski, a 3D generalist who creates environment and concept art for games, recently opened a pottery studio as a sideline.

Michal’s intention to set up an alternative income source was born a few years ago when he noticed how specialised art roles in games were becoming, and didn’t like the idea of having to retrain.

Eighteen months ago, with studio closures and lay-offs in full swing, the time seemed right to put his plan into action. Michal now runs the studio alongside his career as a games artist.

“I can switch to this source of income fully if I have problems with game-dev jobs by increasing my prices and running workshops – then I’ll have a full-time job in the studio,” he says.

“Doing something offline in the real world helps you learn new skills and get experience that may be needed in the future,” says Michal (Image credit: Games Workshop Limited 2016. Published by SEGA)

For many, the emotional whiplash of lay-offs comes from them being so unexpected. Even projects that appear to be thriving can be shuttered, leaving staff both stunned and devastated. Senior environment artist Oleksandr Sychov was a casualty of a high-profile studio closure in May of this year.

He tells us: “For the first time in my career, I was directly impacted by industry-wide layoffs – something I hadn’t anticipated while working at Cliffhanger Games on the Black Panther title. It was an incredible experience collaborating with such a talented and passionate team.

“We all believed in the potential of the Black Panther game, so the sudden shutdown hit everyone hard,” says Oleksandr Sychov (Image credit: Oleksandr Sychov)

“Unfortunately, despite the momentum and creativity within the studio, both the project and the studio were unexpectedly shut down. It was a sobering reminder of how volatile the current climate in the game industry can be – even for high-profile projects.”

Fortunately, Oleksandr has found another job in game development, but the experience has prompted him to consider exploring other creative paths, and like Michal, he’s thinking of traditional art forms.

“I’ve always enjoyed working in ZBrush, and realised that sculpting with plaster and clay feels very similar. It’s made me consider applying my art skills to things like decorative wall designs or other physical mediums.

Oleksandr says: “Be ready for a future where artists and AI work side by side. The transition might be challenging, but staying adaptable will help you thrive.” (Image credit: Oleksandr Sychov)

Tough at the top

Vita Shapovalenko says: “Client perspectives on AI vary widely. Many are actively implementing it for visual content production, while others still prefer traditional methods (Image credit: Vita Shapovalenko)

Concept artist Vita Shapovalenko had a similar experience when a project on which she was art director and team lead was shut down. This left her looking for work in a competitive job market.

Vita has considered her adaptation strategy since the early days of the AI boom. “The topic of AI dominates almost every game development conference,” she says.

“Ideas, originality and a strong artistic voice are more valuable than ever,” says Vita (Image credit: Vita Shapovalenko)

At first she shifted her attention to 3D, which seemed less affected at the time, but now that AI has expanded into that area as well, her background in traditional art and mural painting is always in the back of her mind as a fail-safe. “But in truth, I love working in game development and CG,” she says.

(Image credit: Vita Shapovalenko)

Vita emphasises that while AI may reduce the need for larger art teams, it will never replace creative people.

“I believe that with the right mindset, we can get through this transitional period and even thrive by adapting to new creative pipelines,” she says. “As artists, we’ve always adapted to change. What matters most is to keep creating with intent, to keep evolving with curiosity, and to remember that no matter how powerful the technology becomes, it’s still our ideas that give it meaning.”

Embracing change

Creativity and storytelling cross all platforms and mediums,” stresses Arya Hou (Image credit: Arya Hou)

Arya Hou is a senior concept artist, sculptor and illustrator with a decade of experience in the games industry. The closure of developer Ready at Dawn was a devastating blow, but her explorations of different methods and ideas have helped her reset her creative compass.

“For nearly three years, I watched projects we poured years into get cancelled one by one, and when our studio finally shut down, it broke my heart,” she says. “I kept asking myself: ‘Without these projects, who am I?’ The climate feels like a long storm season that we cannot control, so I turned inward.

“I began exploring different methods to create more freely with curiosity. Out of that came works I truly love, shaped by intuition rather than pressure. Now I know my true compass is love for creation itself.”

“Human artists bring depth, years of training, unique perception, lived experience and vision. That’s what truly touches an audience,” Anya says (Image credit: Arya Hou)

“Three waves of lay-offs hit us hard, but Ready At Dawn has always been full of smart, resilient people, and that spirit showed even in upheaval,” she adds. “We built strong comradeship, helping each other land new roles, or starting fresh with new studios, projects and small businesses. Creativity and solidarity remain alive.”

Her advice for fellow artists is to follow your intuition, and allow yourself to explore many paths. “What you knew belongs to the past, both you and the world are always changing,” she says. “Storms will always pass, and when they do, you’ll already be stronger, ready to bloom again.”

If you’re getting started in game design, see our guides to the best game development software and the best laptops for game development.

This article originally appeared in ImagineFX. Subscribe to ImagineFX to never miss an issue. Print and digital subscriptions are available.

Tanya is a writer covering art, design, and visual effects. She has 16 years of experience as a magazine journalist and has written for numerous publications including ImagineFX, 3D World, 3D Artist, Computer Arts, net magazine, and Creative Bloq. For Creative Bloq, she mostly writes about digital art and VFX.

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