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Over 5,000 games industry workers have already lost their jobs in 2024
(www.videogameschronicle.com)
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It's not only that. Companies are getting richer and richer and they could easily afford LOTS of employees. Microsoft reached the trillion-dollar market cap and a few days later fired 1900 people
Right, but they're doing it because they believe they can make up the lost manpower through automation that won't be integrated enough to do so for another couple years. So they're going to overload their current employees even further than they likely already are and the product/s will continue to suffer and fall off.
This isn't happening in a vacuum, it's happening currently because they believe AI is far enough along to pick up the slack.