The French video game crisis, much like around the world, has a systemic nature but also features several local characteristics. Today, we will delve into the causes — from fatal errors by major companies and management irresponsibility to issues with government subsidies and the role of unions.
As reported by the newspaper Le Figaro, in the past year, the number of job openings related to game development in the Île-de-France region decreased by 95%. In the wake of mass layoffs, local specialists simply have nowhere to go. Over the next couple of years, up to 3,000 French developers — nearly one-fifth of the total workforce in the industry — could be at risk of layoffs.
The increasing reports of layoffs and closures of French studios do not necessarily imply that the scale of the local crisis surpasses that of other major gaming markets. However, the public exposure of issues, including by unions, and a number of local peculiarities suggest some uniqueness in the context of the global industry.
The current wave of layoffs affects French companies of all types. There is growing information that investors are reluctant to invest in projects with budgets between 10 to 50 million euros. Meanwhile, banks and funds have begun to massively deny large French companies credits and additional investments. Confidence in a stable future is scarce for everyone — from public market giants to small indie studios.
Crisis of Public Companies: Illiquidity in Light of Systemic Errors
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