Insider Gaming reports that video game layoffs have averaged 44 job losses a day through the first seven and a half months of 2026. The figures come from analyst Mike Straw, who shared them on BlueSky. His tally puts total confirmed cuts for the year at 10,618 people. That spans 126 companies, and 29 studios have closed outright.
Straw noted the numbers only reflect confirmed cuts. The real total, including layoffs that went unreported, is likely higher. His count runs through mid-August, so several more months of potential cuts remain before the year ends. That includes the holiday season, which publishers traditionally treat as their biggest sales window of the year.
Video game layoffs 2026: what’s driving the cuts
The wave of video game layoffs follows the end of a pandemic-era boom that lifted the industry starting in 2020. Lockdowns pushed players toward games like Among Us and Fall Guys, and servers flooded on titles such as Final Fantasy XIV. That surge in demand has faded as people returned to normal routines. Publishers built up staff and budgets that no longer match current player spending, and many are now cutting back to close the gap.
Rising hardware prices have compounded the problem. Memory shortages have pushed up the cost of consoles and PCs, turning gaming into a pricier hobby. Many players already have less disposable income than they did a few years ago. Companies once considered untouchable, including Ubisoft and Electronic Arts, have both cut jobs and restructured divisions this year.
Which publishers have been hit hardest
Microsoft accounts for a large share of the cuts, after repeated rounds of layoffs across Xbox Game Studios. Speculation has grown that Microsoft could scale back its console hardware business in the coming years. Sony, meanwhile, faces pressure over how to price its rumored PlayStation 6 without pushing buyers away. Nintendo may need to raise the price of the Switch 2 further if component costs keep climbing through the rest of the year.
The release calendar has narrowed the window for smaller studios too. Grand Theft Auto 6 has claimed much of the 2026 holiday period on its own. Several publishers have said they plan to avoid launching major titles anywhere near it, rather than compete directly for attention and sales.
None of this points to the industry disappearing. Games remain a large and profitable business overall. Still, the current wave of video game layoffs reflects companies shrinking to match a smaller market after years of rapid expansion. Many studios grew their headcount quickly to meet the demand of the pandemic era, and that growth is now unwinding in the opposite direction. The process has already cost thousands of people their jobs this year, with several more months of 2026 still to come.