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Monday, February 2, 2009

Fear, Trembling, and Harsh Reality

If you've followed the news in the game industry for any time, then you already know it's a volatile industry. Studios open and close at the the drop of a hat. People get hire to meet the needs of the current project then get let go when the project is complete. And then there is the spectre of outsourcing--the job that gets outsourced could be yours. In short, if you are serious about making a living in the game industry, you had better be prepared for a little excitement, and I! not talking about the good kind!

I'm going through an exciting time right now. The studio I have been working for has laid off over 50% of their workforce in the last year, I survived the first wave of layoffs back in July, but in January the remaining production staff was let go. So, just less than one year after breaking in to the game industry, I find myself broken out.

The reality if the game industry is this: if a studio can't make a profit, they will cease to exist. Unfortunately, the easiest way for any company to cut costs is to cut employees.

Although no industry is "layoff" proof, the games industry carries a much higher risk. Part of the reason is the nature of a game project. A game may only needs a few people in the beginning, but this may grow to 20, 50, ire even hundreds of employees when in full production. When the game is done, the company may find itself with a glut of employees and no work to do. This scenario is a human resource nightmare. Most studios try to have multiple projects in the works and then try to schedule those projects so the low time in one project corresponds with the high time of another, but sometimes it just doesn't work out.

Another tool used by many companies use to cope with the variable nature of game projects is outsourcing. This may range from subcontracting with a local art studio to create some assets to contracting with a team of programmers in another country. If a company can get the same quality of work for less cost, then who can blame them? Sure there are a lot of pros and cons to outsourcing, but it often boils down to the bottom line.

Several factors combined that led to the layoffs at my last studio: changes in the casual games market, a slow economy, poor holiday sales, and access to lower-cost labor oversees. Even the big companies such as Microsoft and EA have announced layoffs. The bottom line is that no one in the industry is immune.

There are some steps you can take to prepare yourself should for the worst. The key is to always be prepared to quickly find that next job:
  • Keep networking. You should keep track of every single person you meet while you are employed. People move around a lot in the game industry, and your present coworkers might be the one who helps you find your next job.
  • Get active on LinkedIn or other such networks.
  • Don't burn your bridges. Prior employers are an excellent resource when you find yourself without a job (as long as you didn't shaft them on your way out the door).
  • Keep your portfolio current. The day you get fired isn't the best time to decide to gather samples of your work.
  • Keep your website and other professional profiles current.
  • Keep up with the latest technologies changes in your profession.

It's also a good idea to have a plan for how you might survive a few months between jobs. Examples include:

  • Always have some money saved or invested that you can gain immediate access to.
  • Avoid long-term commitments such as leases and large loans as much as possible.
  • You might consider getting job-loss insurance on loans you do have if it is available. Such coverage could pay off your debt if you lose your job.
  • In the United States, make sure you file your unemployment claim on your last day of work.

I'm not saying - did all if these things, but I did most of them. I'm a little anxious about finding my next job, but I'm not devastated and I have some resources in the meantime.

One more thing: be flexible. If you're not prepared to move across the country a few times during your career, the game industry might not be the right choice for you.

Wish me luck!

3 comments:

Eduardo Hidalgo said...

Good luck man! I've followed your blog since you got in to the studio and we exchanged messages where I told you that I was trying to get in to the video game industry also... I still haven't been able.

I'm a Mexican national and I've worked in a couple of US companies (not gaming related) but I had to come back to Mexico to find some work (I was working in the mortgage industry and there were a lot of layoffs as you can imagine), now I find myself as part of a team that is doing software development for a US company, they outsourced their programming work to us. Of course the pay is MUCH lower but at least there is something to eat.

I still dream of working in the video game industry, maybe in the US or Canada, or maybe I'll try to just make games by myself.

I hope you keep posting. I look forward to hearing about your next job.

Robert Madsen said...

Great to hear from you again! I definitely intend to keep posting. I already have a couple of interviews coming up, so I very hopeful.

I hope you continue to pursue your goal as well. Keep programming and keep learning. If you can, create a game so you can show prospective employers that you have an understanding of game mechanics, etc.

Keep it touch.

R

Darkstar said...

Hello Robert,
I just stumbled upon the article you published on gamecareerguide.com
That was a heck of an adventure in the way you entered the gaming industry :) . I am also intending to get into the gaming industry. I have been working for the past 2 years in the IT industry as a systems engineer dealing with Cisco and Microsoft products. But now its a totally different story. I'm a CS graduate who has been away from programming for the past 2 years but now it is all coming back.
My brother intends to pursue a career in game development he will be traveling to Canada to achieve this since here in Lebanon we have no university that offers such a major.
Good luck to you and your son.
Best Regards from all the way back in Lebanon.
Keep up the great blog.