Record job losses despite an industry on the rise – what’s going on in UK gaming?
“I had just woken up and I got an email that said, ‘We’re going to have a company-wide meeting’. I knew right away.”
James, not his real name, was visiting his family earlier this year when he saw the message.
“I started thinking about everything I was set to lose.”
He had worked as a game designer at one of the UK’s biggest video game studios for nearly a decade. It was a job he loved and had dreamt of since he was nine years old. But recently he had been worried.
All around him, friends in the gaming industry were being let go.
“My mind was racing, what could I do? I wasn’t going to be the only one job-seeking at the moment because there were so many layoffs. They all happened at the same time.”
He went to the meeting, where his worst fears were confirmed. The company’s chief executive said around 25% of people at the studio would be cut. James was one of them.
“It was rough,” he said, shaking his head.
Gaming is an anxious world right now. There’s been more than 8,000 jobs cut globally since the start of this year and in March, the number of available jobs in the UK hit a record low, according to the report Games Jobs Live.
But in London, as the BAFTA Games Awards 2024 rolled around last week, gamers could just enjoy themselves.
It was a night of glitz and glam with a black-tie dress code. The red carpet was laid along London’s South Bank and hundreds of gaming’s elite turned out.
Baldur’s Gate 3 actor Neil Newbon poses on the red carpet at BAFTA Games Awards 2024.
The team behind Baldur’s Gate 3, the dungeons and dragons hit that went on to scoop Best Game, wandered the carpet taking selfies.
Nadji Jeter, the actor who played Spiderman in the latest game version of the comics, had come to London for the first time for the event.
“Oh my God, I’m so nervous,” he told Sky News, before going on to win the leading role trophy for his performance.
Comedian Phil Wang, who was hosting the night, swooned over legends whose games he’d played as a child.
Phil Wang hosts the BAFTA Games Awards 2024. Pic: BAFTA
But the gaming world is tight-knit. Workers often have to move to new cities and towns for jobs, so colleagues can form a huge part of people’s social circles. The redundancies weren’t far from people’s minds.
“Seeing people in the industry that I adore, who work hard and are damn talented, seeing them struggling is really rough,” said Baldur’s Gate 3 narrator Amelia Tyler.
“I think we’ll pull ourselves out of it, but it’s going to take a while.”
Mass redundancies have hit the industry hard for the last two years. More than 10,500 people working in video games around the world lost their jobs in 2023. More than 8,500 jobs went in 2022.
People hoped things would improve in 2024 but four months into the year, another 8,000 jobs have gone, and the UK is far from immune.
More than 8,000 people have lost their job in gaming in the first four months of 2024
Around 1,000 people across the country have lost their jobs since the cull began, according to Ukie, the industry trade body. That means more than one in 30 people working in video games in the UK is affected.
Swen Vincke, the founder of the studio that made Baldur’s Gate 3, didn’t pull any punches.
“It’s a stupid thing to do. There’s so much institutional knowledge that’s being lost and it just doesn’t make sense because it’s a thriving industry.
“There are more and more people that play games, so you should cherish the developers that are working in it.”
He’s got a point. Over 40 million people regularly play video games in the UK alone, and the UK industry is growing – it’s now worth £7.82bn to the economy.
So what’s going on?
One expert, George Osborn, who writes the Video Games Industry Memo, said there are three problems at play; COVID, delays in publishing games, and the cost of living crisis.
During lockdown, 61% of us played video games, according to Ofcom. Pic: iStock
“The video games industry has been hit by the COVID effect later than everyone else,” he said.
During COVID, when people were shut in their houses with nothing to do, video game sales soared. In just one year, the industry brought in 21% more money around the world, raking in £27.6bn more in 2020 than 2019, according to the global accounting firm PwC.
In response, the industry swelled. Games studios grew rapidly and hired more staff.
“That created a bubble in the industry and there was an overinvestment into games by investors who have since been burned because the market hadn’t been quite set,” said Osborn.
The lockdowns ended, people went back outside and they stopped buying as many games to fill their time.
Then there came the delays. At least 60 major games had their release dates delayed in 2021.
Most didn’t explain why but developers have since talked about the difficulty of working on these kinds of games remotely and in lockdown. When the games did start to get released, they flooded the market and made it harder for smaller games to get seen.
Alan Wake 2 was one of the biggest games to be released in 2023. Pic: Remedy Entertainment
In 2023, blockbusters The Legend of Zelda: Tears of the Kingdom, Alan Wake 2, Resident Evil 4 and Super Mario Bros. Wonder all came out, selling millions of copies each. It was a good year for the big games but much harder for everyone else.
James, the developer who was made redundant, said there was an expectation from his bosses that sales would remain at the same level as during COVID.
“It felt to me like the industry is still growing. It just wasn’t growing as much as they would like it to.”
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Like the rest of the world, gaming is also being hit by the cost of living crisis.
“Video game prices haven’t changed very much in the past five years,” said Osborn.
“That’s meant the cost of making games has gone up quite a lot while the market has softened, so even though the industry did really well last year, it wasn’t enough.”
Things might be looking up…
But there may be light at the end of the tunnel. Ukie has released figures that suggest the industry is growing again.
It hasn’t reached pandemic levels of growth, where double digits were the norm, but last year, 4.4% of value was added. Ukie’s chief executive Nick Poole, was keen to send an optimistic message.
“When you look at the way games are crossing over into other parts of our culture, what we’re seeing is an industry that’s come of age.”
And for James, there was good news too. Although he lost the job he had thought was stable, he has found a new studio to work at in a city where he has friends. For the first time ever, he asked about the company’s finances in his job interview.
“Maybe I was a little bit naive but I started in this industry in a booming time, so every job felt secure, it was just about what they could offer you. Now it doesn’t feel the same,” he said.
Sam Lake (R) poses on the red carpet at the BAFTA Game Awards 2024. Pic: BAFTA
Sam Lake, creator of Max Payne and Alan Wake, had some wisdom to share after over 30 years of work.
“I would like to be hopeful. In my experience, with all these things, it’s a pendulum swing. Things get worse and more troubled, or financially we struggle, but so far at least, we have always swung back.”
King Charles will return to official public duties later for the first time since being diagnosed with cancer.
The monarch, who is the patron of Macmillan Cancer Support, will visit a cancer treatment centre to meet medical specialists and other patients, along with the Queen.
He decided to announce he had cancer at the beginning of February.
Since then, cancer charities have praised his openness and the impact it’s had on raising public awareness, along with the Princess of Wales also talking about her diagnosis.
The aim of today’s visit, where he will meet larger numbers of people for the first time, is to draw attention to the importance of early diagnosis and highlight innovative research, supported by Cancer Research UK, taking place at the hospital.
Queen Camilla, pictured here on Monday, is also due to attend the event. Pic: PA
On Friday, the palace announced that the King was “greatly encouraged” to be given the green light by doctors to return to some public-facing duties.
Sources have stressed that despite the welcome news, the King still has cancer and will continue to be treated for the undisclosed form of the disease.
The Buckingham Palace spokesperson said: “His Majesty’s treatment programme will continue, but doctors are sufficiently pleased with the progress made so far that the King is now able to resume a number of public-facing duties.”
They added: “Forthcoming engagements will be adapted where necessary to minimise any risks to His Majesty’s continued recovery.”
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The King has continued to carry on with his constitutional work behind the scenes and held small meetings inside the palace, including with Prime Minister Rishi Sunak.
At Easter, he made a point of greeting crowds who had turned out to see him attend the church service at St George’s Chapel, Windsor, which was seen as a hint that more public-facing engagements could soon follow.
Palace officials continue to plan for a busy summer and autumn of events but will work around the caveat that plans may need to change depending on the King’s health and doctors’ advice.
The King pictured during his first in-person audience with Prime Minister Rishi Sunak in February. Pic: PA
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The summer months are always a busy period for the Royal Family with events like Trooping the Colour, Garter Day, and Royal Ascot.
There is also the prospect of overseas travel towards the end of the year, as Samoa is hosting the biennial meeting of Commonwealth leaders.
The next leader of the SNP could be “crowned… with no contest”, the Scottish Conservatives have claimed, after Humza Yousaf stepped down from the role on Monday.
Mr Yousaf – who has been leader and first minister of Scotland for just over a year – announced his resignation after his decision last week to cut power-sharing ties with the Scottish Green Party saw his leadership collapse.
Now the focus is moving onto who will replace him with nominations now open until midday on Monday 6 June.
Former deputy of the party John Swinney appears to be leading the pack.
Politics live: Next Scottish FM tipped to be ‘crowned with no contest’
Mr Swinney – was was Nicola Sturgeon’s number two between 2014 and 2023 – has yet to confirm he is running for the leadership, telling Sky News he was “giving very careful consideration” to the decision.
But senior figures have already given him their backing, with the SNP’s Westminster leader Stephen Flynn telling Sky News: “Serious times demand serious politics and serious people, and the best person to take that forward now for the Scottish Nationalist Party is John Swinney.”
He may not have a straight path to victory, however, with sources close to Kate Forbes – who lost out to Mr Yousaf during last year’s leadership contest – saying the MSP was also “actively considering” another run for the top job.
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Swinney ‘considering’ SNP leadership bid
Speaking to the Politics Hub With Sophy Ridge, leader of the Scottish Conservatives Douglas Ross said he didn’t think there would be a contest though.
“My reading of the situation now is John Swinney will be crowned as SNP leader with no contest, and I think as soon as next week there will be a vote in the Scottish Parliament to elect him as the first minister,” he said.
“You’ve seen countless senior politicians both here at Westminster and in Edinburgh back John Swinney. Of course, it’s the same John Swinney that last year ruled himself out and said it’s time for fresh talent to come through.”
He added: “That’s not really going to be a change, it’ll be more of the same, that’s focusing on independence at the expense of the real priorities that people across Scotland have.”
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Meanwhile, former first minister and now leader of rival party Alba Alex Salmond has been expressing sympathy for Mr Yousaf, telling Sophy Ridge it was “a great wrench” to leave the role.
But he questioned whether those around the outgoing leader were “acting in his best interests”, hinting at a plot to oust him in favour of Mr Swinney.
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Yousaf: ‘I’m sad my time is ending’
Asked whether the contest would be a “stitch up” by “the boys club” at the top of the SNP – as party MP Joanna Cherry suggested earlier – the current deputy leader, Keith Brown, said no.
He told Sophy Ridge: “The majority of the cabinet are female and of course we had a very lengthy period with a female leader, so anybody can come forward for this contest.”
However, Mr Brown gave his support to Mr Swinney, saying he was “somebody who is experienced and somebody who will bring unity hopefully to the parliament but also to the party”.
UK
Duchess of Edinburgh: Sophie becomes first member of Royal Family to visit Ukraine since Russia’s invasion
The Duchess of Edinburgh has become the first member of the Royal Family to visit Ukraine since Russia’s full-scale invasion began in February 2022.
Sophie’s trip was to “demonstrate solidarity with the women, men and children impacted by the war”, said Buckingham Palace.
The palace also said it was a continuation of her work to champion survivors of conflict-related sexual violence.
The duchess, 59, met Ukrainian President Volodymyr Zelenskyy and the first lady Olena Zelenska.
The Duchess of Edinburgh visited a memorial for victims of the Bucha massacre
The duchess met an Orthodox priest in Bucha
Sophie, who is a full-time working member of the Royal Family, also delivered a private message to them in a letter from the King.
The royal visited the site of a mass grave in Bucha where victims of the Russian occupation were buried.
The duchess laid flowers at a memorial that contains the names of the victims.
Early on in the war after Russian forces left the town, a number of dead bodies were found with their hands tied behind their backs – seemingly shot at close range. President Vladimir Putin’s troops are accused of war crimes there, including executions and rapes.
During her visit, the duchess also met survivors of conflict-related sexual violence and survivors of torture, said the Foreign, Commonwealth and Development Office (FCDO).
Sophie met children of families affected by the war
And she met children who have now been safely returned to Ukraine, after being forcibly separated from their families and taken by Russia.
She also met female volunteers who have helped their communities cope with the aftermath of attacks with mental healthcare activities for children.
In a speech during her visit, Sophie said: “It’s true that women and girls pay the highest price in terms of human cost when it comes to the way that they are affected, the way that they can be used as weapons of war.
“Rape is used to demean, to degrade and to destroy, and we have to get better at trying to prevent that from happening.”
She added: “I’ve been meeting with survivors of sexual violence and the conflict. I thank them for that honesty in telling me what happened to them. Their stories are sad… but I appreciate their time and their openness.”
The royal visited the Romanivska Bridge in the town of Irpin. Pic: AP
As part of her trip, Sophie visited the “Road to Life” in Irpin, also known as the Romanivska Bridge, that was blown up to stop Mr Putin’s troops proceeding to Kyiv, and later became a key route for people fleeing to safety from the Russian occupation.
The royal also visited the Saint Sophia Cathedral with the first lady in the capital Kyiv.
The Duchess of Edinburgh with the First Lady of Ukraine Olena Zelenska at the Saint Sophia Cathedral in Kyiv. Pic: PA
The Ukraine trip was at the request of the FCDO.
In the two years since the war began on 24 February 2022, at least 10,582 civilians have been killed and 19,875 injured in conflict-related violence in the country, according to the UN Human Rights Monitoring Mission in Ukraine (HRMMU).
Those killed include 5,017 men, 3,093 women, 311 boys and 248 girls.
Sophie signs the guest book at the cathedral. Pic: PA
Pic: PA
The King, when he was Prince of Wales, visited Ukraine in 1996. As monarch, he sent a message of support to the people of Ukraine on the second anniversary of the war.
He wrote: “Despite the tremendous hardship and pain inflicted upon them, Ukrainians continue to show the heroism with which the world associates them so closely. Theirs is true valour, in the face of indescribable aggression.”
In March 2023, Prince William visited Poland to thank British and Polish troops involved in providing support to Ukraine, before meeting refugees who have fled the conflict with Russia to hear of their experiences.
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Sophie announced her commitment to champion the UK’s Preventing Sexual Violence in Conflict Initiative (PSVI) and the United Nations’ Women, Peace and Security Agenda (WPS) on International Women’s Day in 2019.
Over the years, the duchess has visited a number of countries to highlight the impact of historical and ongoing conflict.
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They include Kosovo, Sierra Leone, South Sudan, the Democratic Republic of the Congo and Colombia.
And she has heard first-hand testimonies from survivors of conflict-related sexual violence.
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