Game sector in Sweden faces turmoil as a 'powerful storm' triggers widespread job cuts
**Sweden's Gaming Industry Faces Challenges Amidst Layoffs and Economic Uncertainty**
The gaming industry in Sweden is grappling with a series of layoffs and economic challenges, impacting both local and international workers.
One of the most significant developments is the recent announcement by mobile game developer Toca Boca, known for titles like **Toca Boca World**, of layoffs due to project changes and cost-saving measures. The exact number of affected staff is not publicly disclosed, but roles in QA, art, design, and development are reportedly impacted. Toca Boca's parent company, Spin Master, has also shut down another Swedish studio, Nørdlight, citing high costs and lower-than-expected returns for its mobile titles.
This trend of layoffs is not exclusive to Sweden. Major studios worldwide, such as **Monolith Productions** and **Ubisoft**, have also been affected by substantial layoffs in 2025. This industry-wide shift towards cost efficiency and restructuring is affecting both large publishers and smaller, indie studios.
The situation is particularly concerning for foreign workers in the Swedish gaming industry. While specific details on the implications for foreign workers are limited, the broader trend of layoffs may impact the confidence and stability of international talent working in the sector. Global companies often attract diverse talent, and layoffs can affect employees regardless of their nationality, potentially affecting the industry's ability to attract and retain foreign workers.
The tech industry, which includes gaming, has seen over 22,000 job cuts across the sector so far this year, further influencing the perception of stability within the industry. This broader trend can affect both domestic and international talent.
Notable layoffs in Sweden include gaming giant King, the company behind Candy Crush, which is letting go of 200 employees, with 96 of those roles being in Stockholm. King has been part of Microsoft since 2023. Microsoft has also announced plans to reduce staff across the company by over 17,000, including part of the gaming side of the company.
Despite the challenges, some signs of resilience remain. Karl Magnus Troedsson, the founder and partner of Behold Ventures, a games-focused risk capital company, asserts that the labor market in the gaming industry has seen a clear shift, but does not describe the situation as a crisis. Unionen union confirms that discussions about signing a collective bargaining agreement with King have been ongoing for some time.
Moreover, many of Dataspelsbranschen's members are receiving a lot of qualified applications for open positions, suggesting that the industry still holds appeal for job seekers.
The years of major investments in the gaming industry are behind us, according to Per Strömbäck, from Dataspelsbranschen, Sweden's trade association for video game companies. The tempest has already claimed games company Cult of the North, which went bankrupt last week despite an investment of 106 million kronor two years ago.
The reader's perspective, as shared by one of The Local's readers from a non-EU country, paints a grim picture: "The situation in the gaming industry is very bad."
Former CEO of Swedish games company DICE, Karl-Magnus Troedsson, has stated that the gaming industry is currently facing a "negative perfect storm." However, the industry's future remains uncertain, with both challenges and opportunities on the horizon.
- In the face of the current challenges within the gaming industry, global tech companies like Microsoft, despite acquisitions such as King, are also implementing cost-saving measures, leading to job cuts in their gaming divisions.
- Amidst the ongoing layoffs and economic uncertainties in the gaming industry, the technology sector has experienced over 22,000 job cuts this year, potentially impacting the confidence of foreign workers seeking opportunities in Sweden's tech and business sectors, which include gadgets and innovative startups.
