There's some off-base comments here that ignore why the industry is being hit particularly hard. Note that when it comes to companies like Microsoft, you're right it's pure greed. They don't need to shed those jobs, but that will make shareholders money, so bye-bye livelihood. Fuck Microsoft in particular on this round of layoffs, money for a 65 billion purchase but nothing else, pricks.

But for most of the job losses, it really comes down to high interest rates. High interest rates disincentivizes investing. And the past decade or so has been highly investment based.

A lot of the traditional big publishers like EA and Activision went entirely in-house, so any studio outside of those big ones needed to find funding somewhere. They turned to investment companies.

This works whilst investing is cheap, but when it's hard to come by, suddenly you have to make payroll and can't. This is why Embracer has failed, for example.