2026 State of the Game Industry Report Reveals Widening Effect of Layoffs, Broader Perspectives on Generative AI, Unionization, Tariffs and More

GDC Festival of Gaming’s 14th Annual Survey of More Than 2,300 Game Industry Professionals Provides New Data and Insights on Turbulent Times; Reveals Strong Unionization Support Among US-Based Respondents

SAN FRANCISCO--(BUSINESS WIRE)--The organizers of GDC Festival of Gaming have released the results of the 2026 State of the Game Industry Survey, offering insights into key game industry trends based on responses from more than 2,300 game industry professionals. In line with GDC’s broader transformation into the GDC Festival of Gaming, this year’s State of the Game Industry Survey has also expanded to better serve the full game ecosystem.

To represent the thoughts and perspectives of the game industry across roles and disciplines, the GDC team consulted key stakeholders and community members to refine questions and broaden the survey’s reach. Surveys were customized for each participant group, ensuring that developers, marketers, executives, investors and others answered questions most relevant to them. The team also surveyed a smaller group of game educators and students to capture a snapshot of the challenges facing the next generation.

The report, which can be downloaded for free here, provides the latest data and analysis on layoffs, generative AI adoption and sentiment, unionization efforts, development platforms and priorities, business pressures, emerging trends and more. Key insights from the report are below.

While the State of the Game Industry Report and the contents presented at GDC Festival of Gaming are created independently, the trends and sentiments within the report are often addressed at GDC, which features an entire content track dedicated to Career development, sessions dedicated to emerging AI technologies and hundreds of talks that deal with the most dynamic challenges and opportunities in the industry. The GDC Festival of Gaming, a global gathering for the full game-making ecosystem, will be held at San Francisco’s Moscone Center and neighboring venues from March 9 – 13, 2026. For more details, please visit the official website. Regular updates are available on LinkedIn, Facebook, X, Bluesky and the official Discord server. Official photos are available via the Official GDC Flickr account.

Layoffs Generate Wide Impact; Students Are Concerned About Their Future Job Prospects
The effects of recent layoffs continue to spread across the industry. Over one in four (28%) survey respondents were laid off in the past two years, increasing to one-third (33%) for those in the United States, and half said their current (or most recent) employer has conducted layoffs in the past 12 months. Those at AAA studios were highly likely to have experienced layoffs at their companies; two-thirds of respondents at AAA studios said their companies had layoffs. One-third of people working at indie studios reported the same.

The smaller survey of students illustrates widespread pessimism among future developers and leaders eager to enter the space. Three-fourths (74%) of surveyed students said they are concerned about their future job prospects in the game industry. Students noted the lack of entry-level jobs, increased competition from laid-off workers with more experience and AI-led displacement.

It's Full Steam (Deck) Ahead; More Developers Use Unreal than Unity
Newly added to the 2026 survey, Valve’s Steam Deck is the fourth-most-developed-for platform among respondents, with 28% of developers making or optimizing games for the PC handheld. In addition, 40% of developers said they’re interested in making games for Steam Deck, putting it on par with the Nintendo Switch 2 (39%). For future game development, PC continues to reign, with 73% of survey executives placing PC in their top 3 next-gen platform they’re most interested in.

Unreal Engine is the most popular engine among survey respondents. 42% of developers reported that it is their primary engine for game development, ahead of the next-most-popular engine, Unity, at 30%. Unreal Engine adoption appears to be more common for developers at AA (59%) and AAA (47%) studios. A majority (54%) of developers at older indie studios are still using Unity. Godot has gained some use with newer indie developers (11%), but less so with those at more established studios.

Generative AI Usage Varies Significantly Based on Role and Discipline
Survey results indicate that over one-third (36%) of game industry professionals are using generative AI tools as part of their job. 30% of respondents at game studios reported using AI tools, which is far less than the 58% of those at publishing companies, support teams, and marketing/PR firms that reported to use AI tools. Business professionals’ use (58%) far outweighs that of most other disciplines.

Sentiment from game Industry professionals reveal that they often balance the use of multiple AI tools for multiple purposes, rather than relying on a single platform or use. The most used AI tool for game industry professionals are large language models (LLMs)—mainly ChatGPT (74%), followed by Google Gemini (37%) and Microsoft Copilot (22%). The most common use is research or brainstorming (81%), followed by daily tasks (like writing emails) and code assistance (47% each), and prototyping (35%).

Opinions on Generative AI Hit a New Low; Over Half of Game Industry Professionals Think it’s Bad for the Industry
According to this year’s survey, over half (52%) of game industry professionals think generative AI is having a negative impact on the game industry, up from 30% last year and 18% the year prior. Workers in visual and technical art (64%), game design and narrative (63%), and game programming (59%) hold the most unfavorable views. About 7% of respondents think generative AI is having a positive impact on the game industry, down from 13% in GDC’s 2025 report. That amount is higher for executives, and those in business operations and services (19% each).

Majority of Game Workers Would Like to Join a Union
82% of US-based respondents support the unionization of game industry workers, with 5% opposed and 13% unsure. Support was higher among workers earning under $200,000 per year (87%), those who have been laid off in the past two years (88%) and people younger than 45 (86%). No respondents aged 18-24 were opposed to unionization.

One-tenth (10%) of respondents said they’re members of an industry-wide union like the United Videogame Workers-CWA (which was launched at GDC in 2025), and 2% are members of a company union. These numbers may rise in the coming years, though, as 62% of game industry professionals said they were interested in joining a union.

One-Third of Game Workers Primarily Turn to Self Funding
Over one-third (35%) of respondents said they mainly turn to self-funding for their games. The other primary sources of funding were publishing deals or project-based funding (20%), co-development contracts (9%), and private investment or venture capital (5% each). About 16% were unsure or said the question didn’t apply to them, with several noting that their games are not currently monetized.

US-Based Tariffs Impact 38% of Industry Business Leaders
In 2025, the US government’s executive branch imposed a series of tariffs on imported goods, including video game hardware and the components needed to manufacture it. Over 200 industry executives, investors, and business and finance professionals were asked whether the tariffs have taken a toll. About 38% of respondents said US-based tariffs are impacting their expenses, revenue, or financial decisions; 39% said there’s been no impact, and 23% were unsure. The numbers were similar for those inside and outside the United States.

Marketers Leaning Primarily on Social Media Video for Discovery
Social media (65%) is the primary discovery method for game marketers—and in that world, video reigns supreme. Their top social media platforms are Instagram/Reels (66%), TikTok (64%), and YouTube/Shorts (63%). Other top discovery methods include streamers (39%), paid advertising (31%), and in-person or virtual events (30%).

Marginalized Workers More Likely to Spot DEI Changes on the Job
For currently employed people in the United States, one-fifth (22%) of LGBTQ+ and 18% of women and non-White participants said they’ve noticed changes related to diversity and equity issues or free speech. However, only 10% of men and 13% of White respondents reported the same. Altogether, 14% have seen changes, 63% said they have not, and 23% were unsure.

About GDC Festival of Gaming
GDC Festival of Gaming is the world’s largest professional game industry event with market-defining content for programmers, artists, producers, game designers, audio professionals, business decision makers and others involved in the development of interactive games and immersive experiences. GDC brings together the global game industry community year-round through events and digital media, including GDC Vault, GameDeveloper.com, Independent Games Festival, and the Game Developers Choice Awards.

GDC is organized by Informa PLC, a leading B2B information services group and one of the leading B2B Events organizers in the world. To learn more and for the latest news and information visit https://www.informa.com/.