European studios increased their spending on external talent by 63% in 2025, outpacing the global growth rate of 55%, according to the 'Talent Signals Reshaping the Games Industry' report by Values Value founder and InGame Job co-founder Tanja Loktionova.

The same survey found the number of freelancers collaborating with European studios grew 24% over the year, while average freelancer income rose 19% globally. The numbers point to a structural shift in how studios staff projects: fewer permanent hires, more contractors brought in for defined phases.

What does the data say about the labor market?

The report paints a market where demand and supply struggle to meet. Nearly 60% of studios reported difficulty sourcing qualified specialists, while 54.1% of freelancers struggled to find appropriate projects. Both sides of the market report friction at the same time.

Job security remains thin even for those employed:

• 30% of respondents experienced layoffs in the past year
• It typically takes six months to secure a new position
• Half of respondents expect to change jobs within the next six months
• Fewer than half are satisfied with their current roles

Income gains do not translate into confidence. Although average freelancer monthly income rose 19% globally, nearly 63% of freelancers remain concerned about income stability.

How are studios restructuring teams?

Loktionova described the survey data as "a structural signal that the industry has matured past its growth-at-any-cost phase and has not yet figured out what replaces it."

The report's findings suggest studios are converging on a two-tier team model, Loktionova said. The core consists of "a small core of directors, lead architects, and the people who protect a franchise's creative throughline" who receive "equity, health coverage, and bonuses."

"Everyone else increasingly sits in the periphery: contractors and freelancers hired for a specific sprint or development phase, then let go the moment it ends," Loktionova said.

For studios, the 63% jump in external spending means budget lines for contract work are growing faster than permanent headcount — a hiring pattern that shifts cost flexibility onto individual developers. For teams, it means fewer long-term seats and more project-based engagement.

Is professional development keeping pace?

It is not. Only 26% of respondents felt they were growing professionally, while 36% reported stagnation. A majority — 55% — did not receive any training in the past year.

Those figures matter operationally: studios reporting difficulty finding qualified specialists are simultaneously investing less in developing the specialists they already employ. The training gap and the hiring bottleneck feed each other.

How does generative AI factor in?

The report also surveyed attitudes toward generative AI. 61% of European developers said they are concerned that generative AI will place them under pressure to work faster and produce more.

A smaller but significant share sees a direct threat to employment: 35% believe AI might cause them to lose their job or reduce demand for their role.

What should studios watch next?

The combination of rising external spend, flat training investment and widespread AI anxiety suggests the freelance tier will keep expanding through 2026. Whether freelancer income growth — currently at 19% globally — holds up as more developers move into contract work will be the key market signal to watch.