Talent Shortage and Rising Labor Compensation

Definition

Software publishing faces acute talent shortages combined with rising labor costs. Labor compensation has risen strongly across the industry, yet positions remain unfilled. Small game studios compete with AAA studios and FAANG companies for limited talent, operating at severe disadvantage on compensation budgets. Turnover is high due to burnout from complexity of modern development (AI integration, security threats, regulatory compliance). Game studio owners report difficulty recruiting specialized talent (AI engineers, security specialists, senior gameplay programmers). This talent gap delays project timelines, increases outsourcing costs, and forces creative compromises due to insufficient team capacity. Many indie studios cannot offer competitive salaries or benefits, creating a vicious cycle of high turnover.

Why This Matters

Talent marketplace for game developers, outsourced development teams, fractional CTO/technical leadership services, developer training/certification programs, equity compensation platforms, remote recruitment optimization

Affected Stakeholders

Game Studio Owner, Creative Director

Related Business Risks