Why 2026 is about smaller teams, ethics and sustainability

• Wright says “Studios now have a chance to design workplaces, teams and leadership models that are healthier, more diverse and more future‑proof”
• This year, Kjaer hopes to see “more mid-sized indies step up and take a lead in supporting newer studios, fuelling indie growth from within”
• Kom believes smaller teams “that are disciplined, values-driven, and focused on sustainable production” will be rewarded in 2026

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With Pocket Gamer Connects London taking place on January 19th to 20th, we spoke with industry experts speaking at the event about the sector’s changes, challenges, and opportunities in 2026 and why there’s reason to be cautiously optimistic.

Working in different areas of the industry, they share one common view: the games industry is maturing. Teams are getting smaller and more collaborative, while sustainable growth has become a priority.

“The biggest opportunity in games right now is the chance to rebuild the industry in a way that is genuinely more sustainable, inclusive and innovative than what came before,” explains Hannah Wright, the founder of talent and HR consultancy Just Wright.

“After several years of turbulence, the industry is entering a new phase where growth is stabilising, new markets are emerging, and technology is unlocking possibilities we simply didn’t have before.”

Technology empowering creativity

Wright argues that the accessibility of new tools – “particularly AI and next‑generation engines” – provides one of the biggest ongoing opportunities as it opens new pathways to creativity.

“AI is already transforming development workflows, allowing teams to prototype faster, iterate more efficiently and focus more on creative direction. When used well, it can help smaller teams punch far above their weight.”

She says another opportunity is globalisation and a shift in geography, with younger markets across APAC and MENA particularly “reducing pressure on oversaturated Western hubs”.

“The real opportunity, however, is centred on people. Studios now have a chance to design workplaces, teams and leadership models that are healthier, more diverse and more future‑proof”, says Wright, highlighting areas such as “smarter workforce planning, better wellbeing support, more intentional hiring, and cultures built on trust rather than crunch”.

“2026 could be the year we don’t just recover, we redefine what great work and great workplaces look like in games.”

Indie-centred funding models

As the head of product and partners at Danish indie studio Funday Games, Emil Kjaehr is hoping 2026 will be a year of positive change when it comes to funding. With VC investment continuing to rise, Kjaer would like to see “more mid-sized indies step up and take a lead in supporting newer studios, fuelling indie growth from within”.

Indeed, he’s not the only one in the industry calling for new funding models as an alternative to unsustainable publisher deals and investor pressure.

Instead, he calls for “smart, small and nimble developers that help other studios get a good start, with reasonable terms”.

Through his optimistic lens, he also says he expects to see fewer studio closures in 2026 – “and that smaller studios with smaller titles continue to grow and be successful on platforms like Steam and consoles”.

Platform power

In the same spirit, Kjaer identifies a particular opportunity in platforms like itch.io, a community-focused indie game portal. 

“I think that platforms like itch.io will keep growing, and that developers that are familiar with game jam culture have a great advantage in the current market. Influencers and content creators monitor itch for content; if used right, itch can act as a fantastic testing ground for early ideas and concepts.” 

The funding climate is something Wright also pinpoints as a major challenge. 

“Development is becoming more complex and expensive, with financial sustainability emerging as one of the biggest pressure points for both triple-A and indie studios. 

“Rising production costs, the challenge of live-service expectations, and player fatigue around monetisation all contribute to a difficult operating development.”

Adding to the complexity, she says AI and shifting global markets can be seen as “incredible opportunities” while at the same time present “significant ethical and creative questions”.

Trying to summarise it, she says: “Looking ahead, I think the biggest challenge is finding a sustainable balance between creativity, financial stability and the wellbeing of the people who actually build the games.”

Ethics and sustainability

Sustainable and ethical game production are components Simply Sweet Games co-founder and CPO Carina Kom also hopes to see more of in 2026. 

“I’d love to see a shift away from growth-at-all-costs thinking toward sustainable studios: fair teams, realistic scopes, ethical monetisation, and clearer accountability.” 

Kom says more indie studios should emerge as a result of the industry rediscovering these fundamentals. 

“I believe 2026 will reward studios that are disciplined, values-driven, and focused on sustainable production.”

For many industry professionals in 2026, funding seems to be an inevitable topic. Kom says it’s one of two main challenges currently facing developers. The other one being what she calls “ethics dilution from AI-generated slop”.

“Capital is harder to secure unless you’re extremely clear on audience, differentiation, and the path to revenue. At the same time, discoverability is getting noisier, making trust, craft, and authenticity more valuable.”

As ever, it’s in hurdles like these the industry can also uncover its biggest opportunities. Underserved players is one of them, explains Kom.

“There’s a huge opportunity in premium-casual, word, narrative, and wellness-adjacent experiences – especially for players who want depth without toxicity or manipulation.”

She adds: “Studios that build trust and long-term relationships with players will outperform those chasing short-term metrics.”

For a shifting industry finding its feet after years of pressure, that should be a recipe not just for 2026, but beyond.

Learn from speakers including Wright, Kjaer and Kom at PG Connects London, January 19th-20th. Register today.