Video game industry faces existential crisis amid mass layoffs

The video game industry, the world's largest entertainment sector with a turnover three times greater than film and music combined, is facing an existential crisis. Despite its scale, the industry is struggling with intense competition, changing business models, and significant workforce reductions.

Microsoft recently announced major cuts, laying off nearly 4,800 employees. The Xbox division has been particularly affected, with plans to reduce its staff by 20% by the end of the year due to unhealthy business conditions. This trend reflects a broader pattern of capital concentration, where large monopolies acquire multiple studios only to close them after failed integration attempts.

Technological shifts, including the rise of artificial intelligence, are further transforming how games are created and consumed, adding to the uncertainty regarding the future of the gaming landscape.