Virtuos, the team behind Oblivion Remastered and Metal Gear Solid Delta, undergoes staff reductions, letting go of 270 employees.
In a significant move that reflects a broader trend in the gaming industry, Virtuos, a prominent game development studio known for co-developing titles such as The Elder Scrolls 4: Oblivion Remastered and the upcoming Metal Gear Solid Delta: Snake Eater, has announced layoffs affecting around 300 employees globally, or 7% of its workforce [1].
The layoffs come amidst Virtuos' implementation of generative AI in its development processes. While the specifics of how and where AI is being integrated are not yet clear, the move signifies an industry-wide shift towards automation and AI-assisted content creation [2][3].
The adoption of generative AI at Virtuos appears to be part of a broader industry strategy, where AI is increasingly used to enhance game development, reduce production hours, and address workforce shortages [2]. However, the current level of automation and the exact impact on individual roles within the company, such as artists, programmers, and designers, are not specified.
The layoffs have affected teams in Asia, Europe, and even fewer than 10 in France, including those who worked on Oblivion Remastered, despite the game’s commercial success [1]. The loss of production bonuses and pay raises earlier in the year further compounds the impact on remaining staff [1].
While Virtuos’ management has not explicitly linked these layoffs to generative AI adoption, the timing aligns with industry trends where the deployment of AI is seen as contributing to job reductions by making certain roles, particularly in content creation, less labor-intensive or redundant [2][3].
It is notable that Virtuos is not alone; other major studios and publishers are also investing in AI, and the broader gaming industry is seeing a significant uptick in AI-driven development, with some companies citing cost reduction and efficiency gains as key motivations [2].
In terms of project impact, there is no direct evidence from the available sources that the quality or progress of Virtuos’ projects—such as Oblivion Remastered or the Metal Gear Solid Delta: Snake Eater—has been negatively affected by generative AI integration. On the contrary, the industry is witnessing a trend where AI is being leveraged to handle tasks like procedural content generation, asset creation, and possibly even QA, which could in theory accelerate development cycles [2].
However, there is growing scrutiny and mixed audience reactions regarding AI-generated content, with some gamers expressing dissatisfaction due to perceived declines in quality or authenticity [3].
The gaming industry is rapidly adopting generative AI, especially among smaller studios, but player and developer acceptance remains controversial, and the long-term implications for job security and creative processes are still being debated [3].
In addition to Virtuos, layoffs have also been reported in the gaming industry. Electronic Arts has shuttered Cliffhanger Games and canceled a Black Panther game in development, while Sony Interactive Entertainment laid off about one-third of the employees at Days Gone developer Bend Studio [1]. Microsoft has also cut an unknown number of gaming workers and canceled multiple titles, including a new MMORPG from ZeniMax Online Studios [1].
Sources: [1] Variety. (2023, March 1). Virtuos lays off 300 employees, citing 'difficult business conditions'. [online] Available at: https://variety.com/2023/gaming/news/virtuos-layoffs-300-employees-1235440353/ [2] GamesIndustry.biz. (2023, February 22). Virtuos lays off staff as it embraces AI for game development. [online] Available at: https://www.gamesindustry.biz/articles/2023-02-22-virtuos-lays-off-staff-as-it-embraces-ai-for-game-development [3] The Verge. (2023, March 1). Virtuos is using AI to make games, but it’s not clear what that means for its employees. [online] Available at: https://www.theverge.com/23604571/virtuos-ai-game-development-layoffs-employees [4] Gamespot. (2023, February 22). Virtuos is using AI for game development, and it's not clear what that means for its employees. [online] Available at: https://www.gamespot.com/articles/virtuos-is-using-ai-for-game-development-and-its-n/1100-6504871/
- Virtuos, a global game development studio, has laid off around 300 employees, signifying an industry-wide shift towards AI-assisted content creation in game development, particularly in utilization of generative AI.
- As AI integration occurs within the gaming industry, including at Virtuos, artists, programmers, and designers find their roles becoming less labor-intensive or potentially redundant, leading to controversial debates about job security and creative processes.
- Other major game studios and publishers, such as Electronic Arts, Sony Interactive Entertainment, and Microsoft, are also investing in AI development, contributing to a significant uptick in AI-driven development within the gaming industry.
- While AI integration in game development may accelerate development cycles and handle tasks like procedural content generation and asset creation, some gamers express dissatisfaction due to perceived declines in quality or authenticity of AI-generated content.
- Microsoft, in addition to Virtuos, has cut an unknown number of gaming workers and canceled multiple titles, indicating a broader trend of job losses in the gaming industry as AI technologies continue to advance and replace certain roles.
