More Video Game Job Cuts, Now at F1 Manager's Firm, Frontier

The video game development industry's challenging year continues with the announcement of further layoffs — this time at UK studio Frontier Developments. The renowned Cambridge-based studio, behind titles like Elite: Dangerous, Microsoft’s Zoo Tycoon, Planet Coaster, and Jurassic World Evolution games, plans an organisational review and redundancies, the specifics of which have yet to be shared.

Frontier has a diverse portfolio, releasing two F1 Manager games in recent years, as well as the real-time strategy game Warhammer Age of Sigmar: Realms of Ruin set for November launch. They've also published games from external developers under the Frontier Foundry label such as Warhammer 40,000: Chaos Gate - Daemonhunters, Deliver Us Mars, and FAR: Changing Tides.

In the light of certain games underperforming during the 2022 holiday season, the studio revised its sales expectations for the fiscal years of 2023 and 2024. F1 Manager 2022, after receiving lower than expected sales of 600,000 across console and PC, was specifically cited. Frontier pointed to increased player price sensitivity amid global economic recession concerns.

By June, Frontier declared its Frontier Foundry subsidiary's closure and plans to concentrate on its own games, conceding its third-party portfolio's disappointing financial performance. The company recently revealed its refined strategy focusing on its core strengths following a disappointing financial stint and challenging industry conditions. The aim is to shape the business to help return Frontier to profitability, with a planned reduction in annual operating costs of up to 20% through a recruitment freeze, spending cuts, and redundancies.

Whilst Frontier's existing game portfolio remains in line with expectations, the company looks forward to the release of Warhammer Age of Sigmar: Realms of Ruin and the upcoming Black Friday and Christmas shopping season for revenue boost. The firm expects £108 million in revenue for the 2024 financial year, with a projected loss of £9 million.

In this increasingly difficult year for the video game industry, reports suggest that a staggering 6,383 individuals in the field have lost their jobs in 2023 alone. This news follows the restructuring process at Embracer Group, layoffs and studio closures at Saints Row developer Volition and Cyberpunk 2077 developer CD Projekt, 830 layoffs at Fortnite maker Epic Games, and deep cuts at Worms maker Team17.