Gamergate 2.0

In 2024, the video game industry faced a turbulent period marked by the resurgence of a cultural conflict dubbed “Gamergate 2.0” and an unprecedented wave of studio closures. Critics of the movement argue it was a rehash of 2014’s Gamergate, targeting diversity, equity, and inclusion (DEI) initiatives in game design. Supporters, however, claim it exposed a deeper issue: the integration of “woke” ideology in games, which they allege contributed to commercial failures and studio shutdowns. This article explores the origins of Gamergate 2.0, its focus on “woke” ideology, and the connection to the 2024–2025 studio closures, critically examining whether ideological shifts played a role in the industry’s struggles.

The Spark of Gamergate 2.0

Gamergate 2.0 emerged in early 2024, centered around Sweet Baby Inc., a narrative consulting firm hired by studios to enhance diversity in storytelling. A Brazilian gamer’s Steam Curator page, which flagged games associated with Sweet Baby Inc. as promoting “woke” agendas, gained traction after the company’s employee, Chris Kindred, attempted to mass-report the user for harassment. This incident, widely discussed on X, ignited a firestorm, with posts accusing Sweet Baby Inc. of forcing progressive themes into games like Spider-Man 2 and Alan Wake II.

Unlike the original Gamergate, which focused on gaming journalism ethics, Gamergate 2.0 zeroed in on DEI initiatives, with critics arguing that prioritizing diversity over gameplay quality alienated core audiences. The hashtag #Gamergate2 spread across X, 4chan, and Reddit, fueled by sentiments that games were becoming platforms for “ideological propaganda” rather than entertainment.

The Culture War Intensifies

The movement gained momentum with high-profile releases like Dragon Age: The Veilguard and Assassin’s Creed Shadows. Critics on X slammed Veilguard for its queer, nonbinary, and transgender content, with one post claiming it was “no big deal” to some but a breaking point for others, leading to the resignation of its game director and the closure of BioWare’s Edmonton studio. Similarly, Assassin’s Creed Shadows faced backlash for its Black samurai protagonist, with detractors, including Elon Musk, arguing that DEI elements disrupted immersion.

Harassment campaigns mirrored 2014’s Gamergate, with developers facing doxxing, death threats, and review-bombing on platforms like Steam. Alyssa Mercante, former Kotaku editor, pursued legal action amid relentless abuse. The narrative of “go woke, go broke” became a rallying cry, with X posts linking DEI-focused games to commercial underperformance.

Studio Closures: A Consequence of “Woke” Design?

The gaming industry saw over 30 studio closures and 14,000 layoffs in 2024, surpassing 2023’s 10,000 job losses. Notable closures included Arkane Austin, Firewalk Studios, Monolith Productions, Player First Games, and Cliffhanger Studios, which was developing a Black Panther game. Critics on X and forums like NeoGAF argued that these closures were tied to “woke” ideology, claiming studios that embraced DEI produced games that failed to resonate with gamers, leading to financial losses.

Key examples include:

• Firewalk Studios (Concord): Sony’s Concord, a $200 million live-service shooter, was criticized for “uglified” female characters and DEI-driven design. It shut down within a month of release, with Firewalk closing in October 2024.
• BioWare Edmonton (Dragon Age: The Veilguard): The game’s focus on queer and transgender themes drew backlash, and its commercial struggles preceded the studio’s closure in early 2025.
• Iron Galaxy: Known for DEI advocacy, the studio laid off 66 staff in March 2025, with X posts linking its DEI focus to its downsizing.
• Cliffhanger Studios (Black Panther): EA canceled the game and shut the studio in May 2025, with critics citing its DEI-driven narrative as a factor in its failure to progress.

Posts on X and articles on sites like Medium claimed that studios prioritizing “woke” values over gameplay faced declining sales, as gamers “voted with their wallets.” Some argued that ESG (Environmental, Social, Governance) funding, which incentivized DEI through favorable loan terms from firms like BlackRock, dried up in 2022–2023, leaving studios financially vulnerable.

Counterarguments: Economic and Structural Factors

Industry analysts, however, point to broader economic issues as the primary drivers of closures. Matthew Ball noted that 2024’s layoffs were 40% higher than 2023’s due to rising development costs, oversaturated markets, and post-pandemic spending declines. The Game Developers Conference’s 2025 report found 41% of developers were impacted by layoffs, with restructuring and declining revenue cited as top reasons, not ideology.

High-profile failures like Suicide Squad: Kill the Justice League were attributed to mismanaged live-service models, not DEI. Embracer Group’s closure of 44 studios, including Volition, followed a failed $2 billion deal, not ideological missteps. Critics of the “go woke, go broke” narrative, like Paul Tassi of Forbes, argued that the right-wing narrative exaggerated DEI’s impact, noting successes like Baldur’s Gate 3, which offered diverse options without alienating players.

The Industry’s Response and Decline of Gamergate 2.0

Some developers pushed back against Gamergate 2.0. Alan Wake II’s director refuted claims of forced diversity, and Ubisoft’s Marc-Alexis Côté called out critics for spreading “lies and half-truths.” However, major publishers like Sony and Warner Bros. Games remained largely silent, drawing criticism for failing to protect developers.

By mid-2025, Gamergate 2.0 lost steam, with X posts noting its lack of cohesion and failure to halt industry trends toward diversity. The movement’s focus on harassment over constructive critique alienated moderate gamers, and successful diverse games like Black Myth: Wukong undermined its narrative.

Aftermath: A Divided Industry

Gamergate 2.0 highlighted a deep divide in gaming culture, with some blaming “woke” ideology for studio closures and others pointing to economic mismanagement. While DEI-focused games faced backlash, the industry’s woes—ballooning budgets, overreliance on live-service models, and post-pandemic recalibration—suggest a more complex picture. The closures of studios like Firewalk and BioWare Edmonton fueled the “go woke, go broke” mantra, but analysts argue that market dynamics, not ideology, were the primary culprits.

The industry faces a reckoning in 2025, with calls for better labor protections and a return to creative, player-focused design. Whether “woke” ideology truly contributed to studio closures remains debated, but the controversy underscores the need for balance between artistic expression and audience expectations.