The second annual GDC Trends report from the GDC Festival of Gaming 2026 highlights rising generative AI adoption, co-development growth, and new monetisation models in mobile games—while also surfacing a stark reality for developers: only 20% report good or v
For the second year in a row, the GDC Festival of Gaming 2026 has tried to capture what game developers are wrestling with—what’s speeding up, what’s getting harder, and what it’s doing to the people building the work.
The organisers released the second annual GDC Trends report. built around five key trends: adoption of generative AI. growth in co-development. increased dual monetisation in mobile gaming. challenges in securing funding and publishing partnerships. and evolving advocacy policies and accessibility concerns.
The report says generative AI is already finding its footing. with consistent support for using it in planning and routine tasks—especially among older professionals and neurodivergent individuals. Professionals in the report’s discussion emphasised that AI tools should support rather than replace the development process. Even so, some expressed concerns about potential layoffs.
The report also flags agentic AI as a development cost pressure point. It says agentic AI could reduce AAA development costs by managing bugs, coding, or player support.
Co-development was another central subject. The 2026 State of the Game Industry Report found that 6% of studio employees work at dedicated co-development companies, while other teams take part in co-development alongside their main projects.
Developers. the report says. often prefer co-dev over outsourcing because it allows teams to work on “larger. more foundational parts” of a game and have greater creative input. But the same popularity that makes co-dev attractive is also reshaping the market: as co-development grows. increased competition makes it more difficult for new teams to secure long-term partnerships.
On the revenue side, the report points to dual monetisation in mobile gaming—using in-game ads alongside in-app purchases (IAP)—as a growing trend. It also notes that the direct-to-consumer monetisation model is expanding following the ruling against Apple’s ban on external payment links.
Funding and publishing partnerships remain a separate pressure. with industry professionals describing challenges over the past year in securing funding or finding publishing partners. The report encourages studios to consider self-publishing as an alternative to external funding or partnerships. It argues self-publishing avoids higher publisher sales percentages and preserves creative control. At the same time. it makes the trade-off clear: self-publishing does not provide publisher services such as marketing. testing. or QA.
Advocacy and accessibility policies were also treated as something developers have to navigate, not something they can simply opt into. The report describes limited access to funding. networks. and visibility as an “infrastructure problem.” It also addresses the impact of anti-DEI policies and the shift to “merit-based systems. ” which critics argue overlook the initial disadvantages faced by marginalised developers—particularly those in the LGBTQ+ community.
Older game developers, the report notes, raised concerns of ageism, including pressure to assume managerial roles and being seen as overqualified for creative contributor positions.
Underneath all of these trends sits the report’s mental health study, delivered without any softness. It says only 20% of developers reported good or very good mental health. And 94% experienced at least one symptom of burnout.
The figures don’t just sit beside the industry changes—they bring them into focus. When AI tools and co-development models evolve, when monetisation shifts and partnerships tighten, the report’s numbers suggest the human cost is not automatically reduced by new workflows or market structures.
GDC Trends report 2026 generative AI co-development mobile gaming dual monetisation in-app purchases external payment links self-publishing burnout mental health DEI accessibility