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Survive until 25? We’re off to a rough start | The DeanBeat

Jan 31, 2025 - venturebeat.com
The gaming industry is facing significant challenges in early 2025, with 19 companies announcing closures or layoffs, affecting at least 500 jobs. Notable closures include Midnight Society, following controversies involving co-founder Dr. Disrespect, and layoffs at Electronic Arts’ BioWare and Ubisoft. Despite these setbacks, industry experts predict a better balance in hiring by the end of the year. Microsoft experienced a weak quarter despite a strong game lineup, with a 7% decline in gaming revenue and a 29% drop in Xbox hardware revenue, suggesting a need for a console renewal. Meanwhile, Intel reported losses, benefiting competitors AMD and Nvidia.

On the positive side, gaming acquisitions and financings are recovering, with Microsoft launching several new titles and Nvidia introducing its GeForce RTX 50 Series graphics cards. Nintendo's Switch 2 and the anticipated release of Grand Theft Auto VI are expected to boost the industry. However, concerns loom over potential tariffs on semiconductors from China and Taiwan, which could significantly increase the prices of gaming consoles and other tech products. Despite these challenges, the release of Civilization VII and other exciting games offers hope for the industry in 2025.

Key takeaways:

  • The gaming industry is experiencing significant layoffs and closures, with at least 500 jobs lost in January 2025 alone.
  • Microsoft's gaming revenue declined by 7% in the fourth quarter, despite acquiring Activision Blizzard and adding Call of Duty to Game Pass.
  • Nvidia's stock dropped by 15% due to competition from a Chinese AI startup, impacting the technology sector's market valuation.
  • Civilization VII is set to release on February 11, 2025, offering a potential bright spot in the gaming industry's challenging economic climate.
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