I had anticipated that 2025 would outshine 2024, and in certain personal aspects, it did. However, it also turned out to be yet another year characterized by layoffs, flawed AI implementations, greedy executives, price hikes, and indications of a potential collapse in the gaming industry.
As seen in previous years, Kotaku has compiled a list of the most disappointing video game news and events from 2025. Feel free to take breaks while scrolling through, and let’s all keep our fingers crossed that 2026 brings better tidings—it couldn’t possibly be worse, could it? Surely, it can’t be worse… right?
Numerous Cancellations of Games
This year saw an unprecedented number of significant game cancellations, revealing projects that had been abandoned recently.
Perfect Dark, a highly-anticipated reboot of Rare’s sci-fi shooter series, was canceled along with the closure of its studio. A Wonder Woman game from Monolith was also shelved, putting a legendary studio behind No One Lives Forever and Shadow of Mordor at risk. Additionally, an EA-published Black Panther game was also scrapped, leading to the demise of its development studio.
Continuing Layoffs and Studio Closures
While 2025 was not quite as devastating for layoffs as 2024, it remained distressing, with nearly 10,000 developers losing their jobs, according to layoff trackers. This marks a decline from the over 15,000 job losses peak in 2024, yet it’s still an increase from 2022. Microsoft once again made substantial cutbacks, affecting studios like Rare and Zenimax.
Prominent teams like Cloud Chamber, developers of the upcoming BioShock 4, were also impacted, with dozens of layoffs occurring. The trend continued in indie studios, as Heart Machine let go of staff and halted Hyper Light Breaker‘s early access development.
Rise of Generative AI in Gaming
Generative AI, though not a new concept, saw increased prevalence in 2025. Key figures, such as Swen Vincke from Larian Studios, voiced their support for AI tools, indicating a belief that they could enhance game development efficiency.
Despite widespread criticism from gamers regarding the quality of AI-generated content—often described as subpar—many gaming executives maintained an optimistic outlook towards the integration of AI technology, forecasting that it will continue to grow in the industry and that developers will increasingly leverage it, even if it results in poor-quality outcomes.
Growing Costs of Gaming
The gaming hobby, already costly, saw prices increase further in 2025. Various major companies, including Nintendo and Sony, hiked prices on consoles, accessories, and subscriptions multiple times throughout the year. Notably, Nintendo broke a price barrier with the release of Mario Kart World priced at $80, which sparked considerable backlash, leading to adjustments in pricing for other planned releases. Gamers contemplating building PCs also faced soaring costs for components, significantly hampered by market factors.
Censorship in the Gaming Industry
Amidst rising concerns over censorship, payment processors pressured platforms like Steam and itch.io to remove specific NSFW games. While some companies attempted to distance themselves from these actions, the prevailing trend indicated that creators might have to navigate a more restrictive environment.
