Gaming industry faces job losses and revenue decline in January 2025

The gaming industry is facing challenges in 2025, with 19 companies announcing layoffs or closures in January, resulting in at least 500 job losses. Midnight Society shut down, and Electronic Arts and Ubisoft also reported job cuts. Microsoft's gaming revenue declined by 7% in the fourth quarter, despite a strong game lineup. Xbox hardware revenue fell by 29%, indicating a need for a new console, which may not arrive until 2028. Despite these issues, there are positive developments, including upcoming game releases from Microsoft and Nvidia's new graphics cards. However, concerns about tariffs on semiconductors could raise prices for gaming consoles and other tech products.