The video game industry grapples with unprecedented turmoil, surpassing the severity of the 1980s crash, according to veteran developer Brenda Romero.
A Deeper Crisis Than the 1980s
Brenda Romero states, “I feel like the industry’s in a really horrible place. We were there in the ’80s for the crash, and this is definitely crashier. There are so few people that have not been affected, or their partner’s affected, or they’re worried about being affected. It’s a really difficult time right now.”
Nearly everyone in the sector feels the impact through layoffs, project cancellations, or looming threats.
Romero Games Survives on a Shoestring
Romero Games, led by Brenda and John Romero, endured a major setback in 2025 when funding vanished for a new shooter project. The studio persists with a “micro team,” but the game has scaled back significantly from its original vision.
Widespread Layoffs Grip the Sector
Layoffs plague game development, peaking in 2023 with over 16,000 jobs lost as the post-COVID boom faded. The cuts continued relentlessly through 2024 and 2025, with 2026 showing no signs of recovery.
Even blockbuster titles fail to shield studios. John Romero highlights Battlefield 6 as one of 2025’s top releases, yet Electronic Arts enacted massive layoffs across its teams. “I don’t understand what that’s all about,” he says.
Consumer Strain and AI Tensions
Consumers face rising hardware costs amid AI-driven component shortages and declining sales. Recently, Sony raised PlayStation 5 prices citing global economic pressures.
Behind the scenes, executives push generative AI adoption, meeting resistance from developers and players alike. The Romeros confirm their studio avoids generative AI entirely.
Brenda Romero admits uncertainty: “This is really one of those times where I don’t know.” She adds optimism for the near term: “I know that we’re going to be OK for the next little bit.”
John Romero vows persistence: “I’m not going to stop making games.” Brenda Romero echoes the sentiment, joking that for him, success means “he’s found dead in his chair coding.”
