GDC Survey Reveals Insights on Xbox, Job Layoffs, Generative AI, and More

The Game Developers Conference (GDC) has just shared the insights from its 13th annual State of the Game Industry Survey, which captures the opinions of over 3,000 developers. The survey paints a picture of how recent industry trends like layoffs, the rise of generative AI, and more are shaping the landscape. Developers also voiced their views on live-service games and the potential of platforms like Xbox.

Some findings were anticipated, while others hint at possible broader shifts in the gaming sector.

One of the standout revelations is how the Steam Deck, alongside other handheld gaming devices, has further solidified the PC’s status as the platform of choice among developers. The survey highlighted this growing trend, indicating that 80% of developers are now focusing on PC games, up from 66% last year. In contrast, 38% are developing for PlayStation and 34% for Xbox. Although traditional consoles still play a significant role, this shift towards handheld and PC gaming is noteworthy.

Interestingly, “Steam Deck” wasn’t explicitly mentioned as an option in the survey, but many developers brought it up while listing platforms they are interested in. This suggests a growing interest in Valve’s handheld device among developers.

Personally, I’ve found myself using devices like the Steam Deck and ROG Ally more than my conventional consoles and gaming PCs. This trend aligns with the survey’s findings, emphasizing the rising importance of handheld gaming experiences. For Xbox and PlayStation to stay competitive, they might need to explore this handheld realm soon and offer a compelling experience to capture interest.

Shifting from platforms to services, the survey indicates that Xbox Game Pass is receiving more attention from developers than PlayStation Plus. While 38% of developers are working on PlayStation projects and 34% on Xbox, there’s a noticeable focus on Xbox Game Pass. Thirteen percent of developers aim to release games on Game Pass, compared to just 9% for PlayStation Plus. This reflects Xbox’s proactive approach with its subscription model, which seemingly appeals more to developers despite PlayStation’s larger player base.

Microsoft has been running its “this is an Xbox” campaign to bolster Game Pass and various services, showing its commitment to innovating and growing its user base.

Another noteworthy insight from the survey is the increased skepticism about generative AI, especially among younger developers. While this technology is hailed for streamlining tasks like coding and concept art, this year’s survey found that 30% of developers view generative AI as negatively impacting the industry, up from last year. Interestingly, older developers tend to use AI more than their younger counterparts, perhaps due to the roles they occupy.

The recent surge in industry layoffs has also struck a chord, with one in ten developers experiencing job losses in the past year. Despite this, a surprisingly smaller portion of developers express concern about future layoffs. Factors like Covid-era overexpansion, rising production costs, and declining player interest are among the cited reasons for the layoffs.

Live-service games, despite not always hitting the mark, have a significant presence in the industry, with a third of developers currently working on them. While these games come with risks and potential for burnout, they also offer stability and community engagement when successful.

In summary, the gaming industry is in a period of significant transformation, shaped by factors like layoffs, AI, and evolving platform preferences. GDC remains a key forum for discussing these changes, with the upcoming event in March likely to delve deeper into these pressing issues. The conference, set for March 17-21, 2025, at San Francisco’s Moscone Center, is open for registration for those eager to engage with the industry’s future.