If last year in the industry was marked by layoffs, then 2024 is predicted to be the “year of closure.”

According to a survey by GamesIndustry.biz, the leaders of the video game industry are preparing for the current turmoil to continue until 2025. In their view, the impact of high interest rates, oversaturated gaming stores and investor caution will lead to more restructurings, layoffs and closures.

In 2023, gaming has cut more than 10,000 jobs, according to unofficial data.

“If 2023 was the year of layoffs, then 2024 will be the year of closures. Not only developers, but also publishers, media, service companies… There are too many unprofitable businesses in video games… We expect up to two years of suffering,” says the CEO of one of the game companies.

Lower interest rates are likely to spur more funding, investors say — but there are plenty of “safer” investment targets than video games.

“Why play with a gaming company when you can just put your money in the bank and earn 5%?”

Interest rates put pressure on costs, and not just wages, but also insurance, travel, rent and other business expenses, but there’s no way to offset the increase in game prices.

“There are too many games getting the green light in 2020 and 2021,” said one publisher. “We need to get to a pre-pandemic release schedule, and that will probably take two years. You’re already seeing fewer games being signed by publishers. It happens everywhere. Stores are full, not just Steam, and games just don’t deliver the levels they used to.”

For companies, the salvation is the rejection or reduction of unprofitable or areas of business that distract attention from the main offer.

“Focus is not fun, but in many cases you need to go back to the basics and create backups,” said another famous business leader.

Global issues beyond the control of the gaming business also affect it.

“Government overspending during the pandemic, on wars, and things like Brexit in the UK … it will take years before it normalizes,” the investor said.