Gaming industry to undergo seismic changes in 2025: survey

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Video game publishers and developers are bracing themselves for large-sweeping changes expected to hit the ecosystem over the next 12 months, with emerging technology and layoffs set to be major needle-moving events.

According to the 2025 Game Industry Survey by the Game Developers Conference (GDC), the industry is tipped to record an uptick in artificial intelligence (AI) adoption in the design process. The report surveyed over 3,000 participants across several verticals in the space to reach its resolutions.

Currently, a little over half of surveyed respondents confirmed AI use in their company processes, while 36% of employees lean on the technology. For now, AI use in the creative process is at its lowest, with the highest applications coming from business and finance roles.

However, the report predicts a rise in AI use cases for the industry, accentuated by the leaps recorded by large language models (LLMs) and their potential utility for non-playable characters (NPCs).

Apart from AI, the report projects an adoption spike for blockchain-based games. Previously a niche vertical, adoption reached an all-time high in 2024 without venture capital (VC) funding and is expected to reach stratospheric levels in 2025.

While play-to-earn (P2E) games are moving forward, PC games are expected to make a resurgence, with 66% of developers working on games for the platform. Alongside PC, web browser games will see significant action as ecosystem activity nearly doubled from 2024 levels.

Despite the dividing opinions for live-service games, one out of three surveyed respondents hinted at projects revolving around the offering. 41% expressed their non-participation in live service games, citing oversaturation and concerns around community building.

The report makes bland predictions for video game funding in the coming months, noting a ripple effect from the financial lows of 2024. A staggering 56% of developers have sunk their funds in game development, with less than 30% receiving funding from VC funds.

Crowdfunding is expected to be a major driver of video game funding, with co-development contracts and the “unsavory” option of accelerators expected to contribute to the ecosystem.

Layoffs could be mainstream

Ecosystem players are bracing for a wave of layoffs expected to hit the industry in 2025. 11% of developers confirmed being affected by layoffs in 2024, with a chunk of affected individuals in creative departments rather than administrative roles.

The report predicts that AI adoption in the sector will trigger the next wave of job cuts, a tradeoff between job security and productivity. However, executives in the space argue that the AI-related job losses will be temporary and that the emerging technology will create an avalanche of jobs in the future.

Other triggers for job losses include company restructuring, studio closures, declining revenues, and industry shifts.

The majority of game developers are working on PC titles

The PC segment for video games is expected to rack up impressive figures in 2025, given the number of developers involved in projects for the platform.

According to a State of the Game Industry survey, 80% of respondents indicated their involvement in a PC video game project, a significant spike from previous years. In early 2024, the figure stood at a mere 66%, reflecting similar numbers from 2022 and 2023, with recent metrics triggering speculation.

Apart from the 80% with both feet in PC-related projects, many surveyed developers hinted at a desire to dabble in the segment. The report highlights a 10% jump from last year’s iteration among “interested” developers for the segment.

PC gaming has always been a popular platform for developers, outperforming mobile and racing neck-and-neck with console gaming. However, PC is expected to blow its competition out of the water, reflecting new consumer behavior in recent months that will see “its dominance increase more.”

The sheer number of PC titles released in 2024 is an indicator to the projected ecosystem growth. A staggering 18,974 titles were released on Steam in 2024, dwarfing 2023 metrics by 32% and setting the stage for another record-breaking year.

The glowing numbers around the PC segment have been attributed to several factors. Top on the list for the report is the release and soaring popularity of Steam Deck, a handheld gaming device allowing users to play PC games from their Steam library.

Right out the gate, the “Steam Deck effect” introduces a new demographic to PC gaming, supporting gamers to explore PC gaming without the steep requirement of gaming PCs. Despite their novelty, total sales hover around the four million mark, which is a small fraction of the over two billion PC gamers.

Other reasons include the release of widely anticipated titles with cutting-edge graphics and an influx of VC funding into the space.

A year of changing trends

With daily active user wallets at an all-time high and mainstream developers keen on incorporating Web3 elements in their games, 2025 is expected to be a pivotal year for play-to-earn gaming.

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