The gaming industry, like any other industry experiences its ups and downs. However, the recent waves of layoffs in 2023 and the alarming numbers seen in the early months of 2024 have sent shockwaves throughout the gaming community. More than 6,500 game developers lost their jobs in 2023, and the trend seems to continue — nonstop.
The layoffs of 2023 were primarily attributed to the post-COVID industry slump. During the pandemic, with people confined to their homes, the gaming and tech industries experienced unprecedented growth. However, as the world slowly returns to normalcy, many companies find themselves in a precarious position of being overinflated with employees. With no immediate solution in sight, companies have resorted to massive rounds of layoffs to streamline their operations.
Notable layoffs in 2024 include major players like Riot Games, Sony, Epic Games, and EA. Riot Games laid off 530 employees, Sony 900, Epic Games 870, and EA a staggering 1650. Unfortunately, the trend shows no sign of slowing down. As game development becomes more accessible, smaller teams are emerging as formidable competitors to traditional AAA studios. These agile teams can produce games on a scale of months rather than years, intensifying competition in the industry.
The gaming industry remains one of the largest entertainment sectors globally, continually expanding as games reach broader audiences. To survive in this competitive landscape, companies must explore innovative strategies to optimize their budgets. One such strategy is leveraging tax incentives on digital media works.
For instance, New Mexico offers a lucrative 30 percent tax incentive for game development companies based in New Mexico. Imagine the impact of reallocating that 30% of your development budget. It could mean retaining valuable hires, extending development cycles for higher-quality products, or expanding game releases across multiple platforms.
Las Cruces, NM, stands out as a promising destination for gaming companies seeking to capitalize on these tax incentives. The Mesilla Valley Economic Development Alliance (MVEDA) offers invaluable assistance to companies navigating these turbulent times. As a nonprofit organization, MVEDA provides free services to help businesses thrive in Las Cruces.
Whether you’re considering relocating your company or exploring cost-saving opportunities, MVEDA can guide you through the process. Our team understands the importance of fiscal responsibility and efficient workforce management. By leveraging the resources and incentives available in Las Cruces, NM, gaming companies can weather the storm and emerge stronger than ever.
If you’re interested in learning more about how Las Cruces, NM, can save you money and how MVEDA can support your business endeavors, click the link below. Let us help you navigate the waves of layoffs and chart a course toward success in the gaming industry.
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