More layoffs in the video game industry: Warframe studio dismantles its publishing department

The problematic situation in the video game industry persists, with numerous layoffs taking place. The Warframe studio, Digital Extremes, has announced staff layoffs and the permanent closure of its game publishing and distribution wing, focusing exclusively on development.

This has a significant impact, particularly on Digital Extremes’ latest title, Wayfinder. The maintenance and distribution phase of Wayfinder will be handed over to Airship Syndicate, which will assume full control of the game. In this way, Digital Extremes will substantially reduce its workload and workforce.

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Massive layoffs in the industry

This specific situation, as revealed by PCGamer, underscores the fact that Digital Extremes is significantly downsizing its workforce, a trend seen across various companies in the gaming industry. In fact, the studio’s statement regarding the layoffs is as follows:

“We can confirm that we have had to make the difficult decision to cease operations of our external projects division. (…) We had to let go of a large number of incredibly talented and hard-working people, and as a result, we are working with Airship for a transition where they will take full control of Wayfinder in the coming months.”

The present and future in video games

It is somewhat problematic that in this 2023, despite it being a strong year for the video game industry overall, there has been a drastic reduction in the workforce of numerous companies within the sector. Examples of this include recent layoffs within Ubisoft and the confirmation that Bungie also experienced layoffs in 2023, among many others.

The most challenging aspect of this situation is that, in addition to occurring within the video game industry, it is also prevalent in the broader technology sector. In 2023, for instance, Microsoft has carried out over 10,000 layoffs as part of “workforce adjustments.” It remains to be seen how the industry will evolve in the coming months, but the current trend does not bode well for optimism in the sector.

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