More people working in games are paying out of pocket to keep projects alive as layoffs continue and traditional funding options remain constrained. New findings from the 2026 State of the Game Industry Survey by GDC Festival of Gaming point to a workforce adapting to economic pressure, changing technology, and growing interest in labour organisation across indie, double-A, and triple-A development.
The data shows a shift in how games are financed, how workers view stability, and how tools like AI and modern engines are reshaping everyday production.
Funding Models Shift Toward Personal Investment
Across the industry, more than one-third of game workers now rely primarily on self-funding to support development. Publishing deals remain the next most common source of backing, but co-development contracts, private investment, and venture capital continue to be limited options.
For many teams, especially indies and small studios, this means projects are increasingly shaped by personal budgets rather than external financing. Scope, staffing, and production timelines are often adjusted to reflect financial risk carried directly by developers. The trend also reflects a cautious investment climate where fewer partners are willing to commit capital to unproven concepts.
This environment has pushed many creators to combine contract work with independent development, blurring the line between personal and professional funding in modern game production.
Layoffs Continue to Influence Career Stability
Job security remains a major concern. The survey reports that 28% of respondents experienced layoffs in the past two years, and half said their employer conducted layoffs in the past year. The impact is strongest at triple-A studios, where restructuring and cancelled projects have reduced team sizes.
Students and early-career developers are also feeling the effects. Many report pessimism about entering the field due to fewer entry-level openings and competition from experienced developers who were recently laid off. Concerns about automation and AI-driven displacement add another layer of uncertainty for those planning long-term careers in games.
As a result, many professionals are rethinking how they approach employment, freelancing, and independent development in a market that remains volatile.
Union Support Grows Across the Workforce
Interest in organised labour continues to rise. Among US-based respondents, 82% support unionisation, and 62% of all respondents say they would like to join a union. Despite that, formal membership remains limited, with only 10% belonging to an industry-wide union and 2% part of a company union.
The gap between support and participation reflects structural challenges. Studios are often fragmented across contracts, short-term projects, and remote teams, which makes organising difficult. Still, the growing interest suggests workers are looking for better protections around job security, pay stability, and working conditions, especially as layoffs remain common.
Union conversations are increasingly becoming part of broader discussions about sustainability in both traditional game studios and emerging web3 development spaces.
AI Use Expands While Sentiment Declines
AI tools are now part of regular workflows for many professionals, but confidence in generative AI is weakening. The survey shows 36% of game workers use AI tools at work, mainly for research, everyday tasks, and code assistance. Adoption is strongest in business, publishing, and marketing roles, while developers inside studios report lower usage.
Large language models such as ChatGPT are the most common tools, used for documentation, ideation, and productivity support. However, 52% of respondents now view generative AI as harmful to the games industry, a significant increase compared to previous years.
Negative sentiment is most common among creative and technical staff, who point to risks around job displacement, ownership of assets, and the long-term impact on creative work. More positive views tend to come from executives and business-focused professionals, where efficiency and cost reduction are higher priorities.
Unreal Engine Becomes the Primary Choice
Engine preferences are also shifting. Unreal Engine leads adoption, with 42% of respondents naming it as their main engine, ahead of Unity at 30%. Uptake is strongest at double-A and triple-A studios, where Unreal’s rendering and production pipelines fit larger-scale projects.
Unity continues to see heavy use among older indie teams, while Godot is gaining modest traction, particularly with newer independent developers looking for open-source flexibility. Engine selection is increasingly tied to budget, staffing, and long-term technical planning rather than habit alone.
As development costs rise, engine choice has become a strategic decision that influences both financial sustainability and production scope.
Tariffs Add Financial Pressure for Studios
External economic factors are also playing a role. The survey notes that 38% of business leaders say US-based tariffs are affecting costs, revenue, or financial decisions. Nearly as many report no impact, while others remain unsure.
For studios working across borders, tariffs can influence hardware sourcing, outsourcing, and service partnerships. In an environment where funding is already constrained, even small changes in cost structure can affect hiring and production planning.
A Changing Industry Landscape
The 2026 survey paints a picture of an industry adjusting to tighter funding, workforce instability, and evolving tools. Self-funding is becoming more common, union interest is rising, and AI is reshaping workflows while also raising concerns among developers.
At the same time, Unreal Engine’s growth and ongoing economic pressures show how technical and financial decisions are increasingly connected. For game workers navigating both traditional development and newer web3-adjacent models, sustainability, control, and long-term stability are becoming central to how games get made.
Source: PocketGamer
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Frequently Asked Questions (FAQs)
Why are game developers using more self-funding?
Developers are turning to self-funding because publishing deals, private investment, and venture capital are harder to secure. Carrying costs personally allows teams to continue projects when external financing is limited.
How common are layoffs in the game industry right now?
The survey shows 28% of workers experienced layoffs in the past two years, and 50% reported layoffs at their employer in the past year, with triple-A studios most affected.
Are game developers interested in unions?
Yes. Around 82% of US respondents support unions, and 62% say they would like to join one, even though current membership remains low.
How is AI being used in game development?
About 36% of professionals use AI tools, mainly for research, everyday productivity, and code assistance. Usage is higher in business and marketing roles than in studio development teams.
Do developers trust generative AI?
Trust is declining. More than half of respondents believe generative AI is harmful to the games industry, especially among creative and technical workers.
Which game engine is most popular in 2026?
Unreal Engine leads with 42% adoption, followed by Unity at 30%. Unreal is strongest in double-A and triple-A studios, while Unity remains common among indie teams.
Are tariffs affecting game studios?
Yes. About 38% of business leaders report US-based tariffs affecting costs, revenue, or financial planning, adding pressure to already tight budgets.
