We all love playing video games whenever we get time. Some of us take time out to play these games. Unity Software, one of the most prominent game developing platform was behind some of our all time favorites. They have made games like Pokemon Go, Genshin Impact and Heartstone which we have all played or atleast heard of from our friends. It would be normal to think that in an era where games are so popular, the name behind some of the best games of all time would have made a fortune. But, we would be wrong to think that way.
As surprising as it may sound, things have not been easy for the popular game developer. Recent reports claim that the company has filed a notification with the Securities and Exchange Commission putting their layoff plans in their notice. As per reports, the company would soon be getting rid of about 600 employees which given their current strength would be close to 8% of the company staff.
Unity Software CEO, John Riccitiello
Credits: Tech Crunch
Possible Reasons:
- With the growing popularity of video games all around the world, the layoffs might come as a shocking announcement to most people. Although the actual reasons surrounding the layoffs remain unclear, the game developer has said that the layoffs will help them to restructure specific teams. They further said that the layoffs will help them remain at a good position in the market and would help the company in the long run.
- Another possible reason for the layoffs might be the increasing competition in the gaming industry. Although Unity has created several superhit games in the last decade, its competition has been equally successful if not more. Other game developing companies particularly Epic Games and the Unreal Engine have given stiff competition to Unity Software.
- Lastly, it is also a well known fact that a number of people started playing online games during the pandemic as offices and schools shifted online. This led to a significant growth for all game developing companies in the COVID period. It is possible that the company might have over estimated its profits for the coming years during the pandemic and is now cutting costs to maintain its market relevance.
Layoffs:
Regardless of the factors which led to the company making this decision, this step is likely to have a significant impact on the employees who will be impacted. There is always an added problem with layoffs in the gaming industry, there are lesser jobs available to fill in.
With growing gaming company like Unity Software relying on layoffs to protect their market position, the financial stability of other such companies has become questionable. Although the gaming sector has experienced massive growth in the last few years, it is possible that the industry is now in a phase of slower growth.
Although the layoffs might be a disappointing and concerning news for the employees being affected by this move, there are several resources they could use to get a job. There are also organizations which support the work of game developers and often provide them with monetary opportunities.
Future growth:
Despite these momentary problems, the fusion of newer technologies like virtual and augmented reality have open a wider set of possibilities for the developers. The growing craze of esports is also creating new opportunities for gaming enthusiasts. It is expected that the company will soon regain its ground and come back stronger with another super hit game.
Conclusion:
After facing slight set backs in the share market, this would be the third and the biggest set of layoffs that the company is planning. However, it is expected that the company will soon bounce back to its original potential and gain massive profits.
