Gaming industry 2024: Blockbuster games and major shifts

2024’s gaming rollercoaster: Record sales, studio closures and labor wins

The gaming industry witnessed significant shifts in 2024, from blockbuster launches to studio closures and legal battles. Nintendo's Switch 2 broke sales records, while Microsoft and Sony adjusted their strategies amidst financial pressures and changing market demands.

The year began with Xbox announcing a bold shift in January. Phil Spencer confirmed plans to release former Xbox exclusives on rival platforms, marking a departure from past policies.

By April, tariff concerns disrupted the market. Nintendo paused Switch 2 pre-orders and raised prices for the original Switch, causing unease among retailers and players. Despite this, the Switch 2 launched to massive success in late summer, selling over 3.5 million units in its first four days. However, developers criticized slow distribution of dev kits, and fans worried about the decline of physical game copies. February saw the closure of Monolith Productions, the studio behind No One Lives Forever and Middle-earth: Shadow of Mordor. The shutdown followed Microsoft's decision to streamline its gaming division, though no other major closures occurred that month. Legal troubles also made headlines. In May, a U.S. court ruled against Apple, preventing the company from taking a cut of app sales made outside its App Store. The decision followed long-standing disputes over the tech giant's strict payment policies. July saw Microsoft lay off around 4% of its workforce, affecting multiple studios and leading to project cancellations. The same month, Sony filed a lawsuit against Tencent over Light of Motiram, a game accused of copying Horizon. The case settled quietly in December. Amid the turmoil, Raven Software secured a landmark deal in August. The Activision-owned studio, now under Microsoft, ratified a union contract guaranteeing a 10% pay rise and an end to mandatory crunch. The agreement set a new standard for labor conditions in the industry. Meanwhile, indie success Peak—a cooperative rock-climbing simulator—became a surprise hit. After going viral in June, it sold 10 million copies by August, proving the enduring appeal of innovative gameplay. Sony also abandoned its live-service ambitions in 2024. Following the commercial failure of Concord, the company cancelled projects from Bend Studio and Bluepoint Games, signaling a retreat from the competitive multiplayer space.

The gaming landscape in 2024 reflected both growth and upheaval. Record-breaking sales for the Switch 2 contrasted with studio closures and legal disputes. Microsoft's workforce cuts and Sony's strategic pivot highlighted the industry's evolving priorities, while union wins at Raven Software pointed to changing labor dynamics.