Video game industry faces mass layoffs and shifts in physical media

The global video game industry faces significant labor challenges, with projections suggesting over 14,600 job cuts in 2026. Amir Satvat, Business Development Director at Tencent Games, noted this forecast during Gamescom Dev, highlighting a trend that remains high despite a robust market. In France, for example, the market reached 5.856 billion euros in 2025, marking its second-highest historical level.

Simultaneously, Sony has addressed misinformation regarding its physical game production. Contrary to reports suggesting a 90% drop in production by 2028, a company spokesperson clarified that the projected decline in sales volume is actually 10%. While Sony intends to move toward a fully digital model by January 2028, existing publishers will still be able to order physical discs for PlayStation games, mitigating the immediate impact on production volumes.