
Robbing Hood? How the games industry takes from players and gives to studios
- Gaming industry profits grow while players face predatory practices.
- Layoffs and microtransactions hurt both players and industry workers.
- AI may reduce costs but can't solve gaming's deeper ethical crisis.
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The modern gaming industry, once a beacon of creativity and innovation, has morphed into a profit-driven machine where corporate greed takes precedence over the well-being of both players and employees.
What used to be an affordable escape during challenging economic times has become a financial burden for many gamers, as studios increasingly rely on predatory monetisation strategies to boost their bottom lines.
Meanwhile, the industry’s workforce faces the harsh reality of mass layoffs despite soaring profits. It’s a situation that begs the question: has the games industry lost its soul?
The great gaming robbery: how monetisation exploits players
Copy link to sectionWhile workers are losing their jobs, players are being squeezed by an ever-growing number of monetisation schemes.
What started with microtransactions in free-to-play mobile games has evolved into an industry-wide practice that exploits psychological vulnerabilities.
According to Invezz.com, it is anticipated that microtransactions will contribute more than $74 billion to the global gaming industry in 2025.
Major gaming franchises that once commanded respect are now laden with aggressive revenue-generating tactics. These include:
- Pay-to-win mechanics: Players can purchase in-game advantages, creating artificial disadvantages for those who don’t spend.
- Loot boxes: These randomized in-game purchases exploit gambling psychology to encourage spending.
- Battle passes and FOMO (fear of missing out): Constant updates pressure players to buy new content to stay competitive or “in the loop.”
- Cosmetic purchases: Players are urged to spend real money on aesthetic upgrades, creating a never-ending cycle of spending.
Games that were once complete at launch are now treated as ongoing services, where players are expected to continuously pay beyond the initial purchase price.
FIFA’s Ultimate Team mode and Call of Duty’s monetisation systems exemplify this shift.
Players are encouraged, if not outright pressured, to spend money on in-game purchases—transforming gaming from a fun hobby into a financial drain for many.
The human cost: an industry in crisis
Copy link to sectionThe numbers are alarming. In the past 18 months alone, more than 20,000 workers in the gaming industry have lost their jobs, with a staggering 8,000 layoffs occurring within the last four months.
According to a Sky News report, The United Kingdom has been especially hard hit, with more than one in 30 employees in the gaming sector affected.
Even Sony Studios, the creators of PlayStation, have shut down their London offices, leading to further job losses.
These layoffs aren’t the result of financial struggles.
They are deliberate decisions made by profitable corporations to maintain or increase profit margins. Take-Two Interactive, the publisher behind Grand Theft Auto 5, is a prime example.
Despite making £2.2 billion in profit last year, the company announced plans to cut 579 jobs—around 5% of its workforce.
Initially, CEO Strauss Zelnick denied plans for layoffs, describing the company’s actions as part of a “cost reduction program.”
Source: data40 (as of April 30, 2024)
However, the truth became clear: these cuts are not about necessity, but about maximizing profits, even at the expense of employees.
Economic reality vs. corporate greed
Copy link to sectionThis aggressive pursuit of profits comes at a time when many players are grappling with rising costs of living.
Data from Data.ai shows that consumer spending on mobile gaming dropped by 2% last year, falling to $107.3 billion—a sign that gamers are feeling the economic pinch.
Yet instead of adapting their business practices to this economic reality, many gaming companies have doubled down on exploitative monetisation tactics.
Companies that made significant profits during the pandemic—when more people turned to gaming as a form of entertainment while stuck indoors—have been quick to adjust their business models to squeeze more money from their users.
This has led to several troubling trends in the industry:
- Mass layoffs despite record profits.
- Increased focus on microtransactions even during economic downturns.
- Higher prices for base games and in-game content.
- Reduction of content in base games, only to sell it later as DLC (downloadable content).
The stark contrast between the financial success of gaming companies and their treatment of both players and employees speaks to a growing disconnect.
These businesses are more interested in meeting investor demands than creating meaningful experiences for their communities.
Trust in free fall: the consequences of corporate exploitation
Copy link to sectionThe relentless focus on profit has led to a significant erosion of trust between gaming studios and their players.
According to recent market data, the market capitalization of top gaming companies fell by an average of 29% in 2023—a clear sign that players are increasingly disillusioned with the industry’s practices.
As gaming studios continue to prioritise their bottom lines over the player experience, many fans are beginning to turn away from once-beloved franchises.
The controversy surrounding Star Wars: Battlefront II exemplifies this growing divide.
When players discovered that unlocking iconic characters like Darth Vader required either an enormous amount of time or additional purchases, the backlash was swift.
The incident sparked regulatory attention, with some governments calling for investigations into whether loot boxes should be classified as a form of gambling.
The growing dissatisfaction among players has been reflected in declining sales figures for major franchises.
Call of Duty: Modern Warfare III saw a 41% drop in launch sales compared to its predecessor, while EA Sports FC 24 reported a 10.2% decline in its first-month sales compared to FIFA 23.
These numbers demonstrate that players are increasingly “voting with their wallets,” refusing to support games and studios that prioritise profit over enjoyment.
The human impact: exploitation of players and workers alike
Copy link to sectionFor many, gaming has historically provided an affordable escape from the pressures of daily life. But today, the gaming industry has become yet another financial burden.
Microtransactions, pay-to-win models, and in-game casinos—like the one in Grand Theft Auto 5’s online mode—create environments where players are pushed to spend more than they can afford.
Worse yet, these practices prey on vulnerable individuals, including younger players who may not fully understand the implications of spending real money in virtual worlds.
The impact on the workforce is equally troubling. The ongoing layoffs in the gaming industry reveal an alarming disregard for employees who work tirelessly to create these games.
“Crunch culture”—where developers work excessive hours to meet deadlines—is still prevalent, despite growing awareness of its detrimental effects on mental health and personal lives.
Reports of sexual harassment, bullying, and toxic workplace environments have further tarnished the industry’s reputation.
In response, workers at several major gaming studios have begun to unionize to improve working conditions and job security.
These efforts have gained traction, with unions forming at companies like Activision, where quality assurance testers have been some of the most vocal advocates for change.
A path forward: how to get past the troubles?
Copy link to sectionThe gaming industry is at a turning point. The current model, which relies on the exploitation of both workers and players, is unsustainable.
If the industry is to survive—and thrive—it must undergo a fundamental transformation.
Here are a few potential ways forward:
- Fair treatment of workers: The industry must address its toxic workplace culture, improve job security, and eliminate the practice of excessive overtime.
- Ethical monetisation practices: Gaming companies need to develop monetisation models that respect players’ financial circumstances, rather than exploiting them with predatory tactics.
- Return to complete gaming experiences: Studios should prioritize delivering full, polished games at launch, rather than selling unfinished products and charging extra for additional content.
- Investment in innovation: Instead of focusing on ways to extract more money from players, gaming studios should invest in creating new, engaging, and innovative experiences.
The promise of AI: a potential solution?
Copy link to sectionThe rise of artificial intelligence (AI) in game development offers a potential solution to some of the industry’s problems.
By using AI to streamline development processes, studios could reduce production costs and shorten development cycles—potentially reducing the pressure to rely on exploitative monetisation schemes.
Games like No Man’s Sky have demonstrated the potential of procedural generation, an AI-driven technique that can create expansive game worlds with minimal human input.
However, AI alone cannot solve the deeper ethical issues plaguing the industry.
While AI may reduce the cost of game development, it will not change the fact that many companies prioritize profits over people.
Meaningful change will only occur when studios commit to placing the well-being of their workers and players above their bottom lines.
The road ahead: can the industry rediscover its purpose?
Copy link to sectionThe gaming industry’s current trajectory is unsustainable.
When billion-dollar companies continue to cut jobs and rely on predatory monetisation despite record profits, it’s clear that corporate greed has taken over. But there’s still hope for the future.
As players become more aware of these practices and begin to push back, there is an opportunity for the industry to course correct.
By embracing ethical practices, treating employees fairly, and delivering complete and innovative experiences, gaming companies can rebuild the trust they have lost and rediscover their original purpose: creating engaging, immersive entertainment.
The future of gaming depends on it.
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