The game industry is seeing layoffs and studio closures due to financial expectations not being met.
Microsoft announced restructuring within Bethesda, leading to the closure of Tango Gameworks, Arkane Austin, Alpha Dog Studios, and Roundhouse Studios.
This sends a discouraging message to game developers that even if they innovate, if it doesn't meet financial expectations, they may lose their jobs.
Despite the challenges, indie and AA studios continue to thrive, providing hope for the industry.