Lay Off the Layoffs

There is a culture which permeates all game development, both AAA and Indie: the culture of the Launch Layoff. You know how it goes. Your game launches one day, the next day you're out of a job. This has been happening for years, and it's time for it to stop.

It used to be that we would see a powerhouse indie studio rise up from the ashes of a fallen AAA studio, but the days of "for every one of us who falls, two more will take our place" are fading. Yes, there are a lot of indie studios still, but it seems many people have become complacent in the cycle of Get Job -> Make Game -> Lose Job.

This is not the fault of the employees. It is the fault of the entire industry for making us believe that Layoff Culture is and needs to be the norm. There are a few key steps that companies could take to prevent this from happening. Whether or not they will is up to them.

1. Smaller Games: Not every game needs to be Skyrim or Grand Theft Auto. Games are getting huge, so huge they're almost worth more than the current $60 price tag, and raising their prices will be the only way to keep producing games of this caliber. Developers need to be willing to work on smaller projects, much like indies do, that can make their money back at more reasonable prices or, if remaining at $60, will be successful enough to allow the hardworking team to keep their jobs.
2. Smaller Teams: The days of skeleton crews for Pre and Post Production need to be over. A team of 100+ employees is too big, and obviously (for a powerhouse studio) 5 people is too small. Keep it reasonable, 10-20 people. Contract out whatever work you can and keep your overheard low. Aim to come in under budget so your team can keep their jobs when the game's done!
3. Begin Preproduction Earlier: It's true that there are some jobs that aren't needed in the preproduction phase, and it's easiest just to layoff the current modelers, sound designers, etc. when your company enters the preproduction phase and hire new ones on when the game's been greenlit by the publisher. My solution: begin preproduction of the next project earlier so that the post-production of one game and major production of the next begin at the same time. Yes, this is expensive, especially for big teams, and for small teams the focus needs to be on the current project. Small teams, however, have no need to just sit around and lollygag in a preproduction phase. So, this brings me to my next suggestion:
4. Eliminate Preproduction Entirely: Very few forms of art have a "preproduction phase." The only two I can think of are movies and games. Movies need them because they need their sets scouted and/or built beforehand, they need to find their cast, they need the script written, etc. Games are much more iterative and can be built in real-time. Concept artists, animators, and modelers can work simultaneously to have a character designed and brought to life in a matter of hours instead of weeks if working separately. AGILE techniques can be used to bring a game to life in realtime instead spending months writing up a design doc that details every little bit of production, only to have that doc get trashed down the line because it can't keep up with what's actually happening in the game's development. Games don't need a huge preproduction phase, they need a quick and dirty proof of concept, a prototype that shows core gameplay, and that's it. The less time spent in preproduction, the more money a studio has to come up with new ideas for potential publisher pitches.
5. Publishers Need to Take Risks: The only reason new IPs are tough to come by is because publishers want sequels. Franchises mean money thanks to name recognition. Give developers the chance to stretch and experiment after a game's launch and there will be many great surprises in the video game industry. This, however, also means publishers need to greenlight potential flops, and that is okay. It's not a venture if it's not a risk, and the best way to learn - for publishers, developers, and everyone else - is to fail.
6. Crowdsource Your Idea: If you're not under publisher control, there's no reason to wait for publisher money anymore. I've talked in-depth about how the publisher model is not dead, and also how not all Kickstarter games will be successful, but while it's still a viable option there should be nothing stopping your team from saying, "Are the people interested in this game?" and actually asking them that very question. Why predict when you can survey, and why just get a bunch of "Yes" answers when you can get actual dollars? Don't think that Kickstarter is the only option either. If you run a company with a well-recognized name and plenty of media coverage, you can crowdsource your games on your own website.

What this all comes down to is NO MORE SITTING AROUND! You want to make games for a living? Make games and don't STOP making games! The money thing will take care of itself in time. Take a page from the indie playbook and just dive right in.