The Video Game Industry is NOT Collapsing. A Lawyer Explains.

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It seems like there’s a new round of layoffs in the video games industry every day. We’ve seen Electronic Arts, Ubisoft, NetEase, Microsoft, Sony, and Sega, conduct personnel layoffs, restructurings, and studio closures.

But… why? Is there some video game bubble bursting? Is the video games industry collapsing? Well, no. The current pattern of layoffs is an extremely cynical, reactive business decision that comes to us from recent developments in the tech industry. We’ll see just what is transpiring in the world of big-tech, and then apply what we’ve learned to a select group of examples in the video games industry, before closing with a look at a company which has chosen -not- to follow the example of big-tech.

We’ve covered history, culture, sociology, and more through the lens of video games! Now, it’s time to take a look into finance.
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Chapters:
00:00 – Intro
04:41 – Video Games Copying Big Tech
11:23 – The New Big Tech Game Plan
17:40 – Cool Investors Don’t Look at Tech Explosions
21:38 – The Three Categories of Video Game Layoffs
24:16 – A Contextual Timeline of Layoffs
29:15 – Categorizing Examples
30:10 – Wizards of the Coast
32:38 – Unity
35:29 – 343/The Coalition/Bethesda, Microsoft
38:54 – Riot Games
40:00 – HiRez, Private Companies, and Indies
41:11 – Electronic Arts
44:21 – Embracer Group
45:45 – Take2
47:37 – Ubisoft
49:05 – Games Media, Storefronts, and Others
51:21 – Skepticism and Nintendo
1:00:35 – Conclusion
1:04:38 – Credits Gag
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Attributions:
http://videogamelayoffs.com/

https://gamerhub.co.uk/gaming-industry-dominates-as-the-highest-grossing-entertainment-industry/

https://newzoo.com/resources/blog/explore-the-global-games-market-in-2023

https://www.gamesindustry.biz/the-us-video-game-industry-gets-back-to-growth

https://www.stlouisfed.org/publications/regional-economist/second-quarter-2017/growth-in-tech-sector-returns-to-glory-days-of-the-1990s

https://www.gartner.com/en/articles/what-s-new-in-the-2023-gartner-hype-cycle-for-emerging-technologies

https://www.theguardian.com/business/2019/dec/20/why-wework-went-wrong

https://www.gamesindustry.biz/hundreds-laid-off-at-microsoft-as-part-of-structural-adjustments

https://www.scmp.com/tech/big-tech/article/3191458/china-gaming-crackdown-bytedance-cuts-hundreds-jobs-its-video-game

https://www.gamesindustry.biz/jam-city-lays-off-17-of-workforce

https://www.gamesindustry.biz/jam-city-acquires-ludia-for-usd165m

https://www.computerworld.com/article/3679733/tech-layoffs-in-2022-a-timeline.html

https://www.gamesindustry.biz/meta-laying-off-11000

https://www.computerworld.com/article/3685936/tech-layoffs-in-2023-a-timeline.html

https://www.gamesindustry.biz/what-the-current-wave-of-layoffs-means-for-the-games-industry

https://www.reuters.com/business/retail-consumer/hasbro-defeats-board-challenge-activist-investor-alta-fox-2022-06-08/

https://www.reuters.com/technology/chinas-tencent-starts-new-round-layoffs-sources-2022-11-15/

https://www.reuters.com/technology/tencent-says-making-personnel-adjustments-after-report-xr-layoffs-2023-02-16/

https://venturebeat.com/games/ea-cancels-apex-legends-and-battlefield-mobile-games-shutters-industrial-toys-studio/

Alphabet Earnings Release Q3 2023
https://abc.xyz/assets/4a/3e/3e08902c4a45b5cf530e267cf818/2023q3-alphabet-earnings-release.pdf

EA Proxy Statement 2021-2022
https://s22.q4cdn.com/894350492/files/doc_financials/2021/ar/400772(1)_30_Electronic-Arts_Combo_WR.pdf

EA Proxy Statement 2022-2023
https://s22.q4cdn.com/894350492/files/doc_financials/2023/ar/418941-1-_8_Electronic-Arts-Inc-Proxy10-K-Combo_clean.pdf

Take2 Investor Report
https://ir.take2games.com/static-files/08f13511-2824-4d6e-9571-c857636f7ca6

https://www.drakestar.com/news/global-gaming-report-2022

Ziff Davis Investor Report
https://investor.ziffdavis.com/news-events/news/news-details/2023/Ziff-Davis-Reports-Third-Quarter-2023-Financial-Results-and-Reaffirms-2023-Guidance/default.aspx

https://www.asahi.com/ajw/articles/14852792

https://companiesmarketcap.com/electronic-arts/marketcap/
https://companiesmarketcap.com/nintendo/marketcap/

https://www.youtube.com/watch?v6l8PLKI9oqs
[Awesome remix. Wish I could use this more often]

https://www.youtube.com/watch?vekegU25Ygfo
[This one too.]
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