A new survey released at the Game Developers Conference shows that industry insiders are concerned about the impact of AI and recent layoffs. The annual State of the Game Industry Survey found that developers continue to feel both direct and indirect effects from ongoing industry-wide layoffs, they also believe that generative artificial intelligence (AI) is hurting game development. 

New data shows that 11 percent of developers reported being laid off in the past year, with roles in the narrative field seeing the most moves. 

Additionally, 41 percent of respondents said they had felt the impact of these layoffs, with 29 percent observing their direct colleagues were being let go and 18 percent witnessing developers on other teams being let go. 

Nearly 4 percent of respondents reported being laid off because their studios were closed. In 22 percent of cases, studios were closed due to restructuring, while 18 percent said it was due to declining revenues. Additionally, 15 percent said closures were due to market or industry shifts. 

Fifty-eight percent of respondents said they were concerned about their level of job security. 
Generative AI continues to draw concern among the gaming industry with 30 percent of respondents reporting they believe that generative AI will hurt the industry, up 12 percent compared with last year. Developers also pointed to intellectual property theft, energy consumption, a decrease in quality from AI-generated content, potential biases within AI programs and regulation issues as the main factors behind their discontent with the technology.

More than half of developers noted that the companies they work for have implemented generative AI, while 36 percent reported they are now personally using the technology. Adoption of the technology is highest among older generations, with 47 percent of respondents over the age of 55 reporting they use these tools, compared with 28 percent in the 18 to 34-year-old age range. 

PC platforms continue to be the most common form of gaming, with 80 percent of developers reporting they are working in this area of game development, up from 66 percent last year. Web browser games are increasing in popularity, according to the report, with 16 percent of developers reporting they are now working on releases for web browsers. Mobile game development increased 5 percent compared with last year, with 29 percent of respondents developing games for Android compared with 28 percent developing games for iOS.

Climate change is also having a significant impact on game development with 16 percent of developers reporting they or their company have been impacted by natural disasters. More specifically, 73 percent of respondents reported they had been impacted by floods, hurricanes, storms and other water-related events.