Gaming Icons Claim Today’s Industry Faces More Turbulence Than the ’80s Crash

Brenda Romero and John Romero are two of the most knowledgeable figures in the gaming industry. Brenda has been a developer since the 1980s, contributing to the Wizardry series and serving as the lead designer for Wizardry 8. Meanwhile, John is a pioneer of the first-person shooter genre and co-creator of Doom at id Software. Their insights carry weight, so when they express concerns about the current state of the gaming industry, it’s worth paying attention.

Brenda shared her thoughts, stating that the industry is in a dire situation, reflecting on the significant layoffs and game failures over the past few years. This turmoil has hit her own studio, Romero Games, particularly hard, especially after Xbox unexpectedly withdrew funding while Microsoft was laying off nearly 10,000 employees. “We were there in the ’80s for the crash, and this is definitely crashier,” she remarked.

The video game industry faced a severe recession starting in 1983, with revenues plummeting by an astonishing 97 percent over two years, leading many to believe it could spell the end for gaming. However, the launch of the Nintendo Entertainment System eventually revitalized the market.

While we aren’t witnessing a 97-percent decline today, the current struggles have resulted in far greater losses in terms of money, jobs, studios, and games compared to the ’80s. The lines between consoles and home computers have blurred, and the skyrocketing costs of game development—projected to exceed $300 million for AAA titles by 2026—make the landscape incredibly risky, with job losses occurring regardless of a game’s success or failure.

Brenda noted, “There are so few people that have not been affected, or their partners affected, or they’re worried about being affected. It’s a really difficult time right now.”

John pointed to the example of Battlefield 6, which, despite being the best-selling game of 2025, still resulted in layoffs across several studios involved in its development. “I don’t understand what that’s all about,” he pondered.

So, what’s the path forward for the industry? “This is really one of those times where I don’t know,” Brenda admitted. Having spent years advocating for experimental game designers and supporting women in gaming, she reflected on the drastic changes at Romero Games, which shrank from 110 employees to just nine after the funding cut. “I know we’re going to be OK for the next little bit,” she said. “And if something falls over sideways, and 2027 is another ‘exciting’ year, we’ve both had a good run.”