In 2023, the gaming industry felt the sting of 10,000 job cuts, a blow that reverberated through studios and gaming community alike. And now, in 2024, more layoffs loom ominously on the horizon. It's a grim trend that's detrimental to the industry. However, the real tragedy may be that the CEO’s don’t even realise what game they are playing.
Simon Sinek, renowned author, and motivational speaker, wrote about the concept of the "Infinite Game" in his book of the same name. In the Infinite Game, the objective is not to win but to keep playing and to ensure that the game can be played by future generations. It's about embracing uncertainty and evolving over time. This stands in stark contrast to the "Finite Game," which has specific rules, a clear endpoint, and winners and losers. Spoiler alert, business is an infinite game.
With the recent layoffs it seems to me the CEO’s are all playing a finite game, their balance sheet is their win-state and the people who work for them are the resources which need to be managed to achieve that. The problem is that no one wins at business, there is no win-state. The top spot for the number 1 video game studio doesn’t really exist anyway. What would you base it on? Income? Awards? Studio’s that were at the top don’t always stay there. Some of you may have a studio in mind that demonstrates this point.
Someone who demonstrated the positive impact of playing the infinite game was Nintendo's former CEO, Satoru Iwata. Iwata famously took a 50% pay cut rather than resort to layoffs during challenging times. His decision prioritised the well-being of the company's employees and maintained the creative momentum within Nintendo's game studios. He understood that Nintendo were in an infinite game. There was no win-state, the point was to keep playing. Imagine being at Nintendo during that time, the pride and value you’d feel as you made the next Mario, knowing the CEO had your back. Now imagine how the morale at the studios with layoffs. Who do you think are making the best games? Who has the most productivity?
For those affected by these layoffs, the uncertainty is palpable. This fear of instability and job insecurity is toxic to a creative working environment, stifling innovation and sapping morale. My advice to those affected by the layoffs is to remember that you too are playing an infinite game. This momentary setback is just another chapter in the story of your career, it doesn’t define who you are. I’ve been laid off many times in my career and for better or worse it gets easier each time.
Ultimately, these layoffs are the consequence of a few men in suits at desks, fixated on arbitrary financial goals. They prioritise numbers on a balance sheet over the talented individuals creating unforgettable experiences for the masses. If they aren’t careful they could quickly mismanage their companies out of the game entirely.
For those who are in positions of power and are considering layoffs to ensure financial gain, I’d ask you what sort of game do you think you are playing?
Comments