European Gaming Revenue Grows as Studios Face Layoffs and Trends
European Gaming Revenue Grows as Studios Face Layoffs and Trends
Updated at: August 28, 2026 at 01:30 AM
The European gaming industry is currently navigating a strange paradox: while the market is booming financially, the workforce is facing unprecedented instability.
By 2025, total revenue across 16 major European markets climbed to an impressive €29.7 billion, and the number of active game studios continues to rise.
For the first time in industry history, employment has stalled, or even declined by up to 2%, as studios pivot toward leaner, digital-first business models.
In 2024, a staggering 90% of gaming revenue came from digital purchases.
This shift has been accompanied by a wave of corporate restructuring and layoffs, affecting roughly 26% of developers over the last three years.
Ultimately, the European gaming sector is proving to be both resilient and volatile.
It is an industry that continues to generate wealth and new projects, but it is moving away from large-scale hiring, favoring efficiency over expansion in its human capital.
