Photo credit: venturebeat.com
Amir Satvat, an expert in the gaming industry, recently estimated that approximately 230,000 individuals are employed within this sector. However, Kenn White, a prominent figure associated with the Game Industry Coffee Chat, found this figure surprisingly low. Following an independent analysis, White’s team proposed a more substantial estimate, suggesting that the number of industry employees could range from 740,000 to 900,000.
In a post on LinkedIn, White indicated that their median estimate, derived from a spectrum of low to high figures, stands at 833,000 game industry personnel working across over 25,000 companies. Although this number appears more impressive, it starkly contrasts with Satvat’s original estimate. Upon reviewing White’s data, Satvat adjusted his count to approximately 350,000; however, disparities between their figures persist, particularly regarding those directly involved in game development.
White clarified that their estimates encompass a variety of roles within the industry, including game developers and publishers in sectors like PC, console, mobile, and AR/VR. The estimate also considers various positions such as art, engineering, production, management, and marketing. Importantly, it excludes organizations whose primary focus is not game development or publishing.
Neil Haldar, a seasoned presence in the industry, expressed the collaborative nature of their research methodology, remarking, “We worked closely with individuals like Kenn White and Brandon Hagerman, aiming to examine why no one had undertaken this work before.” Haldar emphasized that the estimates represent a snapshot and are not intended to be continuously updated.
The group remains receptive to feedback and plans to enhance the accuracy of their calculations and assumptions, compiling estimates by country for both low and high employee population brackets.
Satvat communicated his support for this research initiative, acknowledging the considerable effort and reliable information backing their estimates. He shared that his own projections arose from a bottoms-up approach to calculating the workforce, focusing strictly on game developers. The previously mentioned figure of 230,000 primarily represented those engaged in game development roles, yet Satvat recognizes its limitations in encompassing extensive markets like China and India, where reliable data is challenging to gather.
This realization prompted Satvat to revise his estimate to 350,000. He elaborated, “The significant shift occurs when we expand our perspective beyond just game developers to include all individuals working within the gaming industry. This broader definition could elevate the total even further, to 600,000 or beyond.” He pointed out that, while comparatively modest when juxtaposed with other sectors, this new perspective offers important insights into the industry’s scope, which has often been underestimated.
Satvat’s counting methodology involved scrutinizing publicly accessible job listings, which revealed a consistent number of open positions. He expressed curiosity about companies potentially unrepresented in current records, eager to identify opportunities for job seekers. He stated, “The driving force behind my estimate is to highlight available positions for those seeking work in the industry.”
Correspondingly, the researchers from the Game Industry Coffee Chat are utilizing a top-down strategy, leveraging global census data and labor department reports. Satvat appreciates their approach and suggests that it could yield estimates exceeding one million individuals working in or connected to the industry, fostering a productive dialogue regarding workforce distribution.
Nonetheless, Satvat cautioned that while macro-level figures might provide a general sense of scale, they must be cross-referenced through practical indicators, such as employment rates. He voiced concerns over potential discrepancies in the employment figures, speculating, “If we assume a labor pool of 240,000 and observe 10,000 to 15,000 vacancies, that would imply a 20% unemployment rate. In contrast, a figure of one million would suggest only 5% unemployment, which does not resonate with the hardships many face in the industry.”
Tracking roughly 3,000 game studios that are active in hiring, Satvat mentioned that the industry landscape is dominated by smaller teams. He speculated that a substantial increase in headcount could alter the average size of studios, contradicting the reality of a workforce characterized by nimble, small-scale operations.
Despite variability in estimates, Satvat emphasized that both his and GICC’s findings are valuable as they shed light on different aspects of the workforce. He noted that his research centers around visible job openings while recognizing GICC’s work as offering a broader perspective on the industry’s comprehensive footprint.
Reflecting on the evolving dynamics, Satvat acknowledged that future ideation could lead to an adjusted estimate, contingent on new data surfacing from studios not yet accounted for. He underscored his commitment to bridging the gap between contrasting methodologies, aspiring to present accurate job opportunities and understand industry dynamics better.
Looking toward the future, Satvat expressed interest in involving game engine developers in the conversation, suggesting that platforms like Unity and Unreal could contribute valuable insights into the current state of game development ecosystems.
Source
venturebeat.com