European studio expenditure on external talent rises 63% in 2025

In 2025, European video game studios significantly increased their expenditure on external talent, with a 63% rise compared to the global growth rate of 55%, according to the Talent Signals Reshaping the Games Industry report by Tanja Loktionova. This surge in hiring freelancers aligns with a 24% increase in the number of freelancers collaborating with European studios and a 19% rise in average freelancer income globally.

However, the data reveals a concerning trend of studios struggling to source qualified specialists, with 60% of surveyed studios reporting difficulties. Additionally, 54.1% of freelancers face challenges in finding suitable projects, leading to concerns about income stability for 63% of freelancers. The report also highlights that 30% of professionals in the industry experienced layoffs in the past year, with the job search process taking an average of six months.

Furthermore, half of the respondents anticipate changing jobs within the next six months, with only 26% feeling professionally satisfied and 36% reporting stagnation. The industry seems to be transitioning towards a two-tier team model, with a core team of directors, lead architects, and franchise protectors receiving equity, health coverage, and bonuses, while the rest of the workforce consists of contractors and freelancers hired for specific sprints or development phases and let go upon completion.

Despite the growing concerns, 35% of professionals believe that AI could potentially lead to job loss or reduced demand for their roles.