Gaming industry layoffs are hitting the West hard, while Nintendo, Capcom, and Konami stay steady
The video game industry is going through one of its roughest periods in decades, with mass layoffs reshaping studios, publishers, and development teams across the world. According to games industry analyst Amir Satvat, the current downturn is being compared to the infamous 1983 video game market crash, a moment that nearly changed the future of gaming forever.
Since 2022, Satvat’s games industry layoffs tracker estimates that around 57,628 jobs have been cut across the global gaming business through 2026. The numbers paint a grim picture, especially for workers in North America and Europe, where the overwhelming majority of job losses have taken place.
What makes the situation more complicated is that the industry’s total workforce has not collapsed in the same way. In fact, overall employment has reportedly grown slightly during the same period. That suggests the damage is not evenly spread. While some regions and companies are cutting thousands of positions, others are still hiring or maintaining stable teams.
The sharpest impact has been felt in North America. This year, 66% of recorded layoff events reportedly happened there, accounting for 79% of affected workers. When Europe is included, the two regions represent a massive 96% of all layoffs tracked in 2026.
California, one of the world’s biggest gaming hubs, has been hit especially hard. Satvat noted that during one 12-to-18-month stretch, more than half of all global video game layoffs were happening in California alone. That is a staggering figure for a state that has long been associated with major game publishers, technology companies, and creative studios.
Japan, however, appears to be following a very different path.
While Western companies have been cutting staff aggressively, major Japanese publishers such as Nintendo, Capcom, and Konami have largely avoided the same level of disruption. Satvat described Japan as “a completely different ballgame,” pointing to major differences in how Japanese gaming companies are structured and managed.
One of the biggest contrasts is employee retention. Nintendo, Capcom, and Konami reportedly maintain staff retention rates above 97%, an impressive figure at a time when many Western developers are facing repeated rounds of layoffs.
A key reason may be the way Japanese studios build and manage their teams. Many have remained relatively lean compared with large Western publishers. They did not expand as aggressively during the live-service boom, when many companies chased massive online games designed to generate long-term revenue through constant updates, battle passes, and in-game purchases.
That strategy led some Western studios to build enormous teams, sometimes with hundreds of developers attached to a single project. When those expensive projects failed to meet expectations, companies were left with high costs and pressure to cut staff.
Japanese publishers have generally taken a more conservative approach. Rather than assuming every major release needs a huge team or a live-service model, companies like Nintendo and Capcom have continued to focus on carefully managed franchises, polished releases, and long-term brand strength.
Executive pay may also play a role. Satvat pointed out that Japanese executives still earn high salaries, but their compensation is often far lower than that of top executives at some Western gaming companies. He estimated that major Japanese executives commonly earn in the range of $2 million to $3 million, while some Western executives receive tens of millions.
For comparison, EA’s CEO reportedly earned $38,649,984 in the last fiscal year, around 305 times more than the company’s median employee. Nintendo’s president, by contrast, reported compensation of about $2 million over a similar period.
That difference highlights a broader divide in corporate culture. Japanese game companies are not immune to market pressure, rising development costs, or changing player habits. However, their leaner operations, lower executive compensation, and more cautious expansion strategies may have helped them avoid the brutal cuts seen elsewhere.
The current gaming industry layoffs are a warning sign for the entire business. During the pandemic, video game spending surged, companies expanded quickly, and expectations rose sharply. But as growth slowed, many publishers found themselves overextended. Expensive acquisitions, ambitious live-service plans, rising production budgets, and investor pressure all contributed to the wave of job cuts.
Meanwhile, Japanese publishers have shown that there may be another way to operate. Nintendo continues to rely on its powerful first-party franchises and efficient development culture. Capcom has found major success with series such as Resident Evil, Monster Hunter, and Street Fighter. Konami has remained more cautious but has also avoided the scale of layoffs seen across many Western companies.
This does not mean Japan’s gaming giants are completely safe. The industry is still changing fast, and no company can ignore shifts in hardware, player spending, mobile gaming, subscriptions, and global competition. But for now, their approach appears far more stable.
The contrast between Japan and the West raises an important question: did some gaming companies grow too quickly, spend too aggressively, and rely too heavily on risky trends?
As layoffs continue to affect developers, artists, writers, testers, producers, and support staff, the industry may be forced to rethink how games are funded, staffed, and managed. Bigger teams and bigger budgets do not always guarantee better games or healthier companies.
Nintendo, Capcom, and Konami may not have all the answers, but their ability to keep workers while maintaining strong brands is difficult to ignore. In a gaming market filled with uncertainty, their steady approach stands out as a rare bright spot.
