The gaming industry is facing significant challenges, with layoffs impacting major companies and studios, including Sony, which recently laid off nearly 1,000 PlayStation workers. The layoffs are affecting a range of studios, notably Insomniac and Naughty Dog, developers of successful titles like Marvel's Spider-Man and The Last of Us series. This trend is not isolated to Sony; the entire sector is grappling with issues such as the increasing cost of game development, leading to a strategy shift at Xbox and a noticeable absence of a new Switch from Nintendo. The industry's struggles are part of a broader wave of layoffs across the tech sector, with over 15,000 tech layoffs reported in February 2024 alone. This situation underscores the need for new strategies to cope with development costs and the changing landscape of the gaming industry.