Virtual Economy

Krafton’s response to the Unknown Worlds lawsuit hinges on one key element: the interpretation of the Equity Purchase Agreement. Also, lots of earnings, Roblox is under fire from the state of Louisiana, an update on the growing censorship of Steam and Itch.io, and more. You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:00:48] - Correction: Thunderful Share Price at Time of Atari Purchase [00:02:35] - Sony Q1 FY25 Earnings [00:05:24] - Paradox Q2 FY25 Earnings [00:07:26] - Take-Two Q1 FY26 Earnings [00:08:54] - Remedy Q2 FY25 Earnings [00:11:25] - Square Enix Q1 FY25 Earnings [00:16:06] - Sega Q1 FY26 Earnings [00:20:39] - Embracer Group Q1 FY25 [00:23:39] - Krafton Responds to Subnautica Lawsuit [00:30:06] - Roblox’s Content Moderation Failure Leads to Louisiana Lawsuit [00:45:13] - Valve Explains why PayPal is No Longer a Payment Option in Some Territories [00:50:30] - Quick Hits [00:56:25] - Labor Report SOURCES FY2025 Q1 Earnings Announcement | Sony Interim report January – June 2025 | Paradox FIRST QUARTER FISCAL 2026 RESULTS | Take-Two Half-Year Financial Report | Remedy Results Briefing Session for the Three-Month Period Ended June 30, 2025 | Square Enix Q1 for the Fiscal Year Ending March 2026 Results Presentation | Sega Embracer Group publishes Interim Report Q1 | Embracer Group Defendant's Answer to Verified Complaint | Fortis Advisors v Krafton Louisiana Attorney General Liz Murrill files Child Protection lawsuit against popular game Roblox | Louisiana Office of the Attorney General State of Louisiana vs Roblox Corporation | Louisiana Office of the Attorney General Roblox Responds to Louisiana AG Lawsuit | Roblox Valve explain why using PayPal for Steam purchases isn't currently an option in a whole bunch of countries | RockPaperShotgun LABOR REPORT Report: 2XKO and Marvel Snap co-dev Demiurge Studios is laying off staff | Game Developer Bithell Games has Undergone Layoffs | Bithell Games Open letter from the Arkane Studios union section to Microsoft’s and its subsidiaries’ management | STJV Blizzard's story and franchise development division votes to unionize | GamesIndustry

INT. POSH HOTEL SUITE - DAY TENCENT: Hey, Sony. Can we make a Horizon game? SONY: Nah. We good. TENCENT: Oh okay. Bummer. SONY: WHAT THE F—- So yeah… Sony is suing Tencent for what it calls a “slavish clone” of Horizon: Zero Dawn. Bold move! Also: EA, Microsoft, Capcom earnings, an update on the Mastercard/Visa censorship of legal game content, and more. You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:00:30] - Some News From Us! [00:05:21] - An Update on the Conservative Assault on Steam and Itch.io [00:15:34] - EA Q1 FY26 Earnings [00:20:25] - Microsoft Q4 FY25 Earnings [00:30:00] - Capcom Q1 FY26 Earnings [00:35:48] - Sony Sues Tencent Over Horizon: Zero Dawn Clone [00:41:59] - Investment Interlude [00:50:23] - Quick Hits [00:50:44] - Labor Report SOURCES Mastercard Denies Pressuring Steam To Censor ‘NSFW’ Games [Update: Valve Responds] | Kotaku Vile is Banned | DreadXP Freedom to Buy Games | GOG Electronic Arts Reports Q1 FY26 Results | EA Earnings Release FY25 Q4 | Microsoft Consolidated financial results for the 1st Quarter of FY2025 | Capcom Sony’s PlayStation Sues Tencent Over Its ‘Slavish Clone’ of ‘Horizon’ Video Game Franchise | Variety Complaint for Copyright and Trademark Infringement | United States District Court, Northern District of California INVESTMENT INTERLUDE Atari enters into an agreement to invest in Thunderful Group AB | Atari Puzzle & Dragons studio considers shareholder group request for a vote to dismiss its president | VGC Lyrical Media Launches Indie Video Game Publisher Led by UTA, Take Two Vet Blake Rochkind; Three Titles in Development | Variety LABOR REPORT Supermassive Layoffs | Supermassive on LinkedIn Indie Publisher Firestoke Games is Shutting Down | Paul Farley on LinkedIn The studio behind Teenage Mutant Ninja Turtles: Mutants Unleashed brings in union after facing closure | GamesIndustry Raven Software Workers Secure First Contract at Microsoft | CODE-CWA

In 2021, Krafton splashed huge cash on Subnautica dev Unknown Worlds. Now, the publisher may find out that buyer’s remorse isn’t a reason for violating a contract.  Also… Ubisoft Earnings Circana Reports for May and June 2025 Sony takes a bite out of Bandai Namco On this episode, we discussed a serious attack on artist freedom being perpetrated by payment processors Mastercard and Visa. This attack is motivated by an Australian Christofacist group called Collective Shout that, among other things, does not believe adults should have bodily autonomy.  If you would like your voice heard, here are some resources: A compiled resource document by @voiddebris.bsky.social Petitions Change.org ACLU Mastercard Phone (US): 1-800-627-8372 Phone (outside US): 1-636-722-7111 Online submission form Visa Phone (US): 1-800-847-2911 Non-US numbers Online form Some important tips: Phone calls are more impactful than emails. Do not let support reps push you to email, where keywords can filter out your concerns. Keep support reps on calls as long as possible. This creates meaningful and measurable dips in call center productivity that management WILL notice. Call multiple times with the same case number. Call center KPIs include clearing tickets in as short a time and in one call. This is another metric that will grab leadership attention. The service impact should be sustained for at least a month says workforce management professional Elliot Wilson on Bluesky. You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:02:59] - Ubisoft Earnings [00:11:08] - Circana Reports on U.S. Video Game Spending for May and June 2025 [00:22:28] - Unknown Worlds v Krafton [00:35:10] - Mastercard and Visa are Ramping Up Their Censorship (Steam, Itch.io) [00:43:54] - Investment Interlude [00:48:01] - Quick Hits [00:50:25] - Bonus Investment Interlude [01:02:16] - Labor Report SOURCES Ubisoft Q1 FY26 Earnings | Ubisoft Ubisoft Names Co-CEOs of Spinoff | Variety KRAFTON ANNOUNCES GAMING INDUSTRY VETERAN STEVE PAPOUTSIS AS NEW CEO OF UNKNOWN WORLDS | Krafton Krafton Delays ‘Subnautica 2’ Game Ahead of $250 Million Payout | Bloomberg (Paywall) Fortis Advisors v. Krafton via Aftermath | Scribd (Nicole Carpenter) Steam cracks down on some sex games to appease payment processors | Ars Technica INVESTMENT INTERLUDE Bandai Namco and Sony Sign Strategic Partnership | Bandai Namco Gamefound acquires Indiegogo | Gamefound ‘Subnautica 2’ Publisher Krafton Acquires ‘Last Epoch’ Developer Eleventh Hour Games for $96 Million | Variety LABOR REPORT Tom Clancy, Star Trek: Bridge Crew Studio Ubisoft Red Storm Lays Off 19, Citing 'Global Cost-saving Efforts' | IGN Virtuos confirms it's laying off 270 workers across Asia and Europe | Game Developer Secret 6 Has Been Closed | Patricia Pérez Menéndez on LinkedIn Secret 6 Madrid workers call off strike after agreeing severance terms with Testronic | Game Developer Report: Wardogs developer Bulkhead is laying off workers | GamesIndustry Airship Interactive entered administration earlier this month | GamesIndustry Report: Wayfinder developer Airship Syndicate is laying off staff | Game Developer Dark Sky Studio Ganymede Games is Shutting Down | Jerry Prochazka on LinkedIn HELP OUR GREG WITH HIS MASTERS DISSERTATION! Our lead moderator and King of Game Showcases, Greg Alderton, is working on his masters dissertation. As part of that, he’s conducting research on cozy spaces in games. We’d be delighted if you’d help him by participating in the research phase. All you need to do is download a small file from Itch.io here, take a few minutes to experience the two spaces included, and fill out a short form here. Thank you for helping Greg!

Following strong financial performance in its gaming division, Microsoft is taking a machete to its work force and its future as a serious competitor. Is this the brand’s Red Ring of Death? Also, Bungie runs from Marathon, Warner Bros. goes all-in on safe IP, and the labor report hurts even more than usual. You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:03:59] - Sony Games & Network Services Update [00:16:09] - Marathon Delayed Indefinitely [00:27:51] - Sony Brings Four Games Back to 177 Countries [00:30:18] - Cleer Arc 3 Gaming Review [00:37:52] - Investment Interlude [00:42:27] - Quick Hits [00:59:46] - Labor Report SOURCES Game & Network Services Segment | Sony Marathon Development Update | Bungie Sony removes regional restrictions on four of its biggest games on Steam | PC Gamer Tencent owns 15% of Helldivers 2 studio Arrowhead, it has emerged | VGC INVESTMENT INTERLUDE Sensor Tower Acquires Playliner to Expand Live Ops Intelligence Across Mobile Gaming | Sensor Tower Warner Bros. Games Restructures Into Divisions Based on ‘Game of Thrones,’ Harry Potter, ‘Mortal Kombat’ and DC Universe | Variety LABOR REPORT Microsoft Begins Deep Job Cuts Across Xbox Division | Bloomberg (Paywall) Microsoft to lay off as many as 9,000 employees in latest round | Seattle Times Lost Records and Jusant developer Don't Nod is laying off staff | Eurogamer Bloodlines 2 developer The Chinese Room has laid off employees, but Paradox says the game is still coming in October | PC Gamer Hypixel Studios has Canceled Hytale and Will Wind Down | Hypixel Studios on Twitter MindsEye Developer Build a Rocket Boy Begins Layoff Process Amid Disastrous Launch, Studio Sources Say | IGN MindsEye Dev's UK Workforce of Around 300 Receive At-Risk Emails as Former GTA Lead Leslie Benzies Finally Addresses Staff | IGN Cyan Worlds Has Gone Through Another Round of Layoffs | Cyan Worlds on Bluesky Studio Camelia has Closed | Studio Camelia on LinkedIn Star Wars: Hunters Publisher Shutters Studio Founded by Torchlight, Diablo Creator Before It Could Announce Its New Game | IGN People Can Fly Undergoes Layoffs | People Can Fly on LinkedIn Major layoffs at Playtika with up to 160 jobs cut on Best Fiends and Redecor teams | MobileGamer.biz Subway Surfers Blast developer Outplay Entertainment has laid off 21 workers | Game Developer RuneScape studio Jagex lays off an undisclosed number of 'non-player facing' staff | Game Developer Cult of the North Shutting Down | Adam Schaub on LinkedIn Report: Return to Moria developer Free Range Games lays off 80 people | Game Developer Sony is making layoffs at Days Gone developer Bend Studio | Game Developer French court convicts ex-Ubisoft bosses for workplace harassment | AFP Video Game Workers Reach Historic Tentative Contract Agreement with Microsoft | CWA

With our Switch 2 in-hand, we’re ready to give you our early feelings about the console in this challenging market. Also: SO many earnings. Like… SO many. Nintendo, Sony, EA, Take-Two, Remedy, Embracer Group, Paradox, Square Enix, Capcom, and Sega. You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:05:02] - Switch 2 Impressions [00:41:28] - Nintendo FY25 Earnings [00:47:16] - Sony FY24-25 Earnings [00:51:17] - EA Q4 and FY25 Earnings [00:56:43] - Take-Two Q4 and FY25 Earnings [01:04:24] - Remedy Q1 FY25 Earnings [01:07:57] - Embracer Group Q4 and FY25 Earnings [01:15:24] - Paradox Q1 FY25 Earnings [01:24:38] - Square Enix FY25 Earnings [01:29:49] - Capcom FY25 Earnings [01:35:56] - Sega FY25 Earnings SOURCES Nintendo FY 25 Results | Nintendo FY2024 Consolidated Financial Results | Sony Electronic Arts Reports Q4 and FY25 Results | EA EA Pushes Full Return to Office, Effectively Ends Remote Hiring | IGN Take-Two Interactive Software, Inc. Reports Results for Fourth Quarter and Fiscal Year 2025 | Take-Two Remedy Entertainment Plc: Business Review January–March 2025 | Remedy Embracer Group publishes Interim Report Q4 | Embracer Group Interim report January – March 2025 | Paradox Results Briefing Session for the Fiscal Year ended March 31, 2025 | Square Enix Consolidated Financial Results for the Year Ending March 31, 2025 | Capcom Consolidated Financial Results for the Year Ending March 31, 2025 | Sega

PAX East isn’t the show it was 10 years ago. With most AAA developers staying away, indies take center stage. Also: Circana report for April 2025, GameStop sells off its Canadian holdings, Curve Games has a new owner, the SAG-AFTRA voice performer strike enters the endgame, and much more. We’ve also got a pair of great listener questions! You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:03:10] - Circana Report on U.S. Video Game Spending for April 2025 [00:17:36] - PAX East Recap [00:52:48] - Investment Interlude [01:09:12] - Quick Hits [01:17:15] - Labor Report [01:34:37] - Listener Questions INVESTMENT INTERLUDE Universal Distribution completes Alliance Game Distributors buyout from Diamond Comics after chaotic bankruptcy auction | BoardGameWire Curve Games Acquired by Nazara Technologies | Curve Games Apple acquires RAC7, its first-ever video game studio | Digital Trends NCsoft makes "strategic equity investment" in Empty Vessel | GamesIndustry Griffin Gaming Partners Leads €12M Series A in Amplitude Studios | Griffin Gaming Partners Sony PlayStation establishes new studio, teamLFG, to work on "an ambitious incubation project" | GamesIndustry Starbreeze acquires publishing rights to troubled Payday 3, says move will 'accelerate development roadmap' | Eurogamer Brightika expands to PC and console with $3m investment for indie devs | GamesIndustry LABOR REPORT EA Cancels Black Panther Game, Closes Cliffhanger Games | IGN Microsoft announces plans to lay off thousands more workers | VGC Video Game Companies Release Final Offer to SAG-AFTRA Addressing AI Demands Amid 9-Month Strike (EXCLUSIVE) | Variety Video Game Companies Remove AI Provision on Unlimited Digital Replicas From ‘Best, Last and Final’ Offer to Actors Union (EXCLUSIVE) | Variety SAG-AFTRA's Interactive Media Agreement Negotiating Committee Responds to Video Game Employers | SAG-AFTRA SAG-AFTRA Statement on Fortnite’s Use of A.I. Darth Vader Voice and ULP Filing | SAG-AFTRA THQ Nordic studio that was set to be closed in 2023 somehow escaped the Embracer death spiral and is now working on a new RPG | PC Gamer

Microsoft is jacking prices on hardware, software, and peripherals. With costs going up while interest in Microsoft’s offerings declining, we have to wonder if Microsoft is applying pressure to push Game Pass. Also: Circana report on U.S. Video Game Spending for March 2025, Apple scores an own-goal and pisses off the Court, the tabletop industry is in freefall, and EA lays off another 300 to 400 people. You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:1:31] - GTA 6 Delay [00:12:06] - Circana for March 2025 [00:17:43] - Devolver Digital Investor Presentation  [00:24:36] - Microsoft Q3 FY25 [00:45:36] - Investment Interlude [00:56:59] - Quick Hits [01:06:42] - Labor Report [01:24:58] - FAFO SOURCES Earnings Release FY25 Q3 | Microsoft Investor Presentation - 2024 Results | Devolver Digital Devolver Digital lays off almost half of Reigns studio Nerial | Eurogamer A judge just blew up Apple’s control of the App Store | The Verge New Epic Games Store Webshops and Revenue Share Update | Epic Games INVESTMENT INTERLUDE Blue Ocean Games Terms & Conditions | Blue Ocean Games LABOR REPORT Online board game seller Boardlandia shuts down after tariffs add “unsustainable burden” to company’s existing challenges | BoardGameWire CMON announces layoffs, will stop ‘all future game development’ and crowdfunding efforts | Polygon Report: Meta has laid off over 100 Reality Labs employees | Game Developer Mighty Yell Undergoes Layoffs | Mighty Yell on Bluesky Respawn Layoffs | Respawn on Twitter Electronic Arts Lays Off Hundreds, Cancels ‘Titanfall’ Game | Bloomberg (Paywall)

The original Nintendo Switch launched at $300 USD. The Switch 2 price was absent from the huge Nintendo Direct, only to be quietly revealed at $450. As for game prices, Mario Kart World is a whopping $80. Costs are on the rise, and the latest tariffs have spiked the price of accessories. So… where do we go from here? Also… Ubisoft slices off its most profitable franchises, lots of layoffs, and a huge game publisher strike. You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:02:53] - Nintendo Switch 2 and The Return of Paul Rudd, Gamer Dude [00:43:22] - Ubisoft Slices Off an Arm to Make a Tencent Deal [00:53:41] - Gamestop Q4 and Full Year Earnings [00:58:49] - Investment Interlude [01:01:36] - Quick Hits [01:14:37] - Labor Report SOURCES Nintendo Switch 2 Launches June 5 at $449.99 | BusinessWire Ubisoft Accelerates its Transformation by Laying Foundation for New Operating Model | Ubisoft GameStop Reports Fourth Quarter and Fiscal Year 2024 Results | GameStop INVESTMENT INTERLUDE Krafton acquires controlling stake in Indian gaming studio Nautilus Mobile for $14M | TechCrunch Say hi to the new Supercell Investments | Supercell LABOR REPORT Cyan Worlds Lays off Half its Staff | Cyan Worlds on Twitter Plaion: Job cuts at Munich-based Embracer division (Update) | Games Wirtschaft Plaion Lays Off a Reported 40 People | Plaion Crystal Dynamics lays off 17 employees | GamesIndustry Major Layoffs at Eidos-Montreal | Eidos-Montreal on LinkedIn More Layoffs at Lost Boys Interactive? | Bryan Harmon on LinkedIn Atomhawk Design Announces Layoffs | Atomhawk Design on LinkedIn PlaySide Studios is Restructuring | PlaySide Studios on LinkedIn Supermoves Developer Makea Games is Shutting Down | Makea Games Brass Lion Has Conducted Layoffs | Brass Lion on LinkedIn ZeniMax union votes to authorize a strike | The Verge

Warner Bros. continues to chip away at its infrastructure and consumer confidence with the closure of three more studios. Also: Circana reports for Jan and Feb, a recap of GDC and developers’ feelings about the industry, a curious period for investments, a new union looks to cover the entire industry, and more. You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:03:00] - Circana Report on U.S. Video Game Spending for January 2025 [00:11:59] - Circana Report on U.S. Video Game Spending for February 2025 [00:21:39] - GDC 2025 Recap [00:54:29] - Investment Interlude [01:14:23] - Quick Hits [01:22:11] - Labor Report SOURCES Warner Bros. Shuts Down Three Game Studios, Cancels Wonder Woman Title | Bloomberg (Paywall) Studio Fizbin's Last Magic Trick: “Reignbreaker” | Studio Fizbin Layoffs at Wizards of the Coast's Skeleton Key Studio | Nassim Ait-Kaci on LinkedIn PlayStation Hit With More Layoffs Following Recent Game Cancellations | Kotaku Mountaintop is Shutting Down | Spectre Divide on Twitter Respawn lays off staff, cancels another unannounced game | Game Developer Free Range Games has Undergone Layoffs | Free Range Games on LinkedIn Fallout and Obsidian veterans ditch open-world game plans as team shrinks to a "skeleton crew" | Eurogamer Wizards of the Coast winds down Sigil VTT team | Andy Collins on LinkedIn Sunsetting Seekers of Skyveil | Elodie on Steam UVW-CWA unveiled at GDC 2025 | UVW-CWA INVESTMENT INTERLUDE Emona Capital completes acquisition of UK publisher Secret Mode | Secret Mode Emona Capital makes investment in Blackbird Interactive | Blackbird Interactive on LinkedIn GTA developer Rockstar acquires Video Games Deluxe to expand into Australia | Game Developer Former NetEase director self-funds new studio to ensure "management protects creators" | GamesIndustry Tencent acquires additional shares in FromSoftware parent company, Kadokawa | GamesIndustry PlayStation has formed new studio Dark Outlaw Games with Call of Duty Zombies lead Jason Blundell | VGC Niantic’s Next Chapter | Niantic Jam City Sells Ludia to Canadian Investors | Joshua Yguado on LinkedIn

Despite mounting evidence that Games as a Service are struggling, executives continue to go back to that empty well. Also: A ton of earnings reports (Nintendo, EA, Paradox, Square Enix, Sega, Ubisoft, Remedy, Embracer Group, and Sony), the labor picture worsens, and Niantic may be exiting the gaming space. You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:01:58] - Nintendo Q3 FY25 Earnings [00:16:07] - EA Q3 FY25 Earnings [00:30:18] - Paradox FY24 Earnings [00:34:40] - Take Two Q3 FY25 Earnings [00:36:46] - Square Enix Q3 FY25 Earnings [00:40:17] - Sega Q3 FY25 Earnings [00:42:52] - Ubisoft Q3 FY25 Earnings [00:44:49] - Remedy FY24 Earnings [00:47:15] - Embracer Group Q3 FY25 Earnings [00:50:18] - Sony Q3 FY25 Earnings [00:54:11] - Investment Interlude [01:01:38] - Quick Hits [01:05:18] - Labor Report SOURCES Consolidated Results for the Nine Months Ended December 31, 2023 and 2024 | Nintendo Electronic Arts Reports Q3 FY25 Results | EA Battlefield Labs | EA END OF KAIZEN REVIEW | EA Year-end report January – December 2024 | Paradox Paradox Interactive acquires Haemimont Games | Paradox Consolidated Financial Results for the Nine-Month Period Ended December 31, 2024 | Square Enix Consolidated Financial Results for the Nine-Month Period Ended December 31, 2024 | Sega UBISOFT REPORTS THIRD-QUARTER 2024-25 SALES | Ubisoft Remedy Entertainment Plc: Financial Statements Release January-December 2024 | Remedy Embracer Group publishes Interim Report Q3 | Embracer Group Q3 FY2024 Consolidated Financial Results | Sony INVESTMENT INTERLUDE Dead Astronauts Secures €4M In Oversubscribed Seed Round | Dead Astronauts nDreams establishes new internal studio, shutters two others | GamesIndustry GameStop Announces Plan to Pursue a Sale of French and Canadian Operations | GameStop ‘Pokémon Go’ Maker Nears $3.5 Billion Deal to Sell Games Unit | Bloomberg (Paywall) LABOR REPORT Sumo Group is Refocusing and Undergoing Layoffs | Sumo Group on LinkedIn Iron Galaxy Layoffs | Iron Galaxy on LinkedIn Report: ProbablyMonsters conducting more layoffs after pledging to build 'stable home for developers' | Game Developer Report: Hi-Rez Studios laid off dozens of developers from Smite team | Game Developer Crytek is Laying Off 15% of its Workforce | Crytek on LinkedIn VR dev Toast Interactive lays off majority of staff | Game Developer Liquid Sword makes "deeply regrettable" job cuts for "the studio's long-term sustainability" | GamesIndustry Netflix has laid off staff at Oxenfree developer Night School Studio | Game Developer Bossa Games Layoffs | Bossa Games on LinkedIn EXCLUSIVE: 10:10 Games Employees Offered No Severance, Layoffs Happened While On Holiday, And More | Insider Gaming Layoffs at NetEase on the Marvel Rivals team | Jack Burrows on LinkedIn Layoffs at NetEase on the Marvel Rivals team | Thaddeus Sasser on LinkedIn

There are few things worse than yet another company laying people off… and EA has committed the sin of obfuscating job losses. Also: Earnings season is underway, the Circana report for December 2024 and the full year, a recap of the GDC State of the Industry report, and more. You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:00:49] - EA Takes a Tumble [00:12:58] - Microsoft Q2 FY25 Earnings [00:19:38] - Capcom Q3 FY25 Earnings [00:25:39] - Circana Report on U.S. Video Game Spending for December 2024 and Full Year 2024 [00:35:25] - Learnings from the GDC State of the Industry Report [01:05:38] - Investment Interlude [01:14:06] - Quick Hits [01:25:21] - Labor Report [01:38:15] - Listener Questions [01:50:18] - FAFO SOURCES Electronic Arts Pre-Announces Preliminary Q3 FY25 Results | EA Electronic Arts EVP Jacob Schatz sells shares worth $215,174 | MSN Earnings Release FY25 Q2 | Microsoft Consolidated financial results for the 3rd Quarter of FY2024 | Capcom Meta Reports Fourth Quarter and Full Year 2024 Results | Meta The drone pilot who took out an LA firefighting plane pleads guilty to escape prison | The Verge INVESTMENT INTERLUDE Pocketpair launches publishing business [Pocketpair Publishing] and announces first publishing partnership with SURGENT STUDIOS. | Pocketpair Virtuos acquires three studios to 'significantly augment' development support capabilities | Game Developer Board game distribution major Alliance gets $39m buyout bid as owner Diamond Comics files for bankruptcy protection | BoardGameWire Closing of Easybrain divestment | Embracer Group LABOR REPORT BioWare Studio Update | BioWare Blog Reflector confirms more layoffs after Unknown 9 falls short of expectations | Game Developer Phoenix Labs Lays Off Most of Its Staff | Phoenix Labs on LinkedIn Ubisoft Layoffs and Closures | Ubisoft Leamington on LinkedIn Fast Travel Games Lays off 30 People | Fast Travel Games on LinkedIn Studio co-founded by Dr Disrespect closing after three years working on new FPS | PCGamesN

The year has begun, and the industry is already off to an intense start. On this episode, we discuss the business decisions behind the Switch 2’s departure from “Weird Nintendo,” Ubisoft’s precarious position, the U.S. ruffling Tencent’s feathers, and the Consumer Financial Protection Bureau’s move to regulate premium game currency. You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:03:27] - The Switch 2 has finally been announced [00:19:11] - The United States labels Tencent a military asset [00:22:16] - The U.S. Consumer Financial Protection Bureau turns its eye to premium game currency [00:26:15] - The U.S. Federal Trade Commission sets new precedent regarding sales of loot boxes [00:37:16] - Investment Interlude  [00:48:47] - Quick Hits [00:54:39] - Labor Report SOURCES US designates Tencent and CATL as Chinese military companies | The Verge LFG (Looking for gamers): CFPB wants to hear about your video game loot | Consumer Financial Protection Bureau CFPB Seeks Input on Digital Payment Privacy and Consumer Protections | Consumer Financial Protection Bureau Banking in video games and virtual worlds | Consumer Financial Protection Bureau Genshin Impact Game Developer Will be Banned from Selling Lootboxes to Teens Under 16 without Parental Consent, Pay a $20 Million Fine to Settle FTC Charges | U.S. Federal Trade Commission INVESTMENT INTERLUDE Ex-Annapurna Video-Game Staff to Absorb Former Take-Two Indie Label | Bloomberg (Paywall) Strategic Update | Ubisoft ANALYSIS: Ubisoft Faces Its Most Challenging Year in its History | Insider Gaming Tencent, Guillemot Family Said to Mull Ubisoft Asset Venture | Bloomberg (Paywall) NetEase pulls funding for another studio: Former Halo Infinite design head says Jar of Sparks is 'halting work' while it looks for a new publisher | PC Gamer Maximum Entertainment divests Merge Games assets to Silver Lining | GamesBeat LABOR REPORT Suicide Squad: Kill the Justice League developer Rocksteady hit by end-of-year layoffs | Eurogamer The First Gaming Layoffs Of 2025 Have Happened | Insider Gaming via YNA EXCLUSIVE – Cloud Imperium Games Undergoes Major Shake-Up to Hit Deadlines | Insider Gaming GameStop is Silently Shutting Down More US Stores | Insider Gaming Robocraft 2 developer Freejam shuts down | Game Developer Splash Damage is Ending Development on Transformers: Reactivate and Scaling Down | Splash Damage on Twitter Toadman Interactive has been Closed by Daybreak | Senol Kandemir on LinkedIn Microsoft conducts 'small' layoffs across various divisions | Game Developer VR studio Soul Assembly has laid off 15 percent of its workforce | Game Developer Group Customer Harassment Policy | Square Enix STJV union calls for extended strike at Don't Nod with layoffs looming | Game Developer

34,000. That’s how many jobs have been lost in our industry since the start of 2022. We recap the year, discuss PAX Unplugged and The Game Awards, and look ahead at what to expect in 2025. We did a deep dive on tabletop card game trends and the looming tariffs for all of our fellow tabletop gaming nerds, too! You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:05:17] - Reflecting on PAX Unplugged 2024 [00:27:44] - Our Time at the TGAs [00:32:54] - Circana Report on U.S. Video Game Spending for November 2024 [00:39:23] - Gamestop Q3 FY24 Earnings [00:41:30] - Investment Interlude [00:47:21] - Quick Hits [00:55:50] - Labor Report SOURCES GameStop Discloses Third Quarter 2024 Results | GameStop INVESTMENT INTERLUDE KADOKAWA and Sony Agree to Form Strategic Capital and Business Alliance | Sony Cooldown Games Formed by WB, Gearbox, and id Software Veterans | Cooldown Games on LinkedIn Reforged Studios acquires Yellow Lab Games | GamesIndustry LoopMe Acquires Chartboost from Zynga, Accelerating its Mission to Power Brand Advertising Across the Digital Ecosystem | Business Wire Build a Rocket Boy acquires PlayFusion | VGC Dark Passenger Receives $3M Investment from The Games Fund | Ilia Eremeev on LinkedIn LABOR REPORT In what will surely come as no surprise at all, the end of Suicide Squad means layoffs at Warner Bros. | PC Gamer People Can Fly hit with another round of layoffs | GamesIndustry Glow Up Games is shutting down | Mitu Khandaker on LinkedIn Layoffs at Deck Nine Games | Deck Nine Games on Twitter Hothead Games is Shutting Down After 18 Years | Hothead Games on LinkedIn ZeniMax Online Studios workers form their own union | Engadget

We now know that Microsoft wasn’t kidding when they said they had no intention of pulling Call of Duty from PlayStation. Whether the Game Pass Gambit pays off or not, Black Ops 6 is selling great on Sony’s console. Also: the rest of the Circana report on U.S. Video Game Spending for October, a pair of Mass Effect alums run into funding trouble, and more. You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:] - Ubisoft Shutters Three Studios and Ends XDefiant Development [00:] - Circana Report on U.S. Video Game Spending for October 2024 [00:] - Investment Interlude [00:] - Quick Hits [00:] - Labor Report SOURCES Ubisoft Discontinues Development on XDefiant | Ubisoft Thought Pennies cuts headcount as project loses funding | GamesIndustry Heart Machine is Undergoing Layoffs | Sol Brennan on LinkedIn A Message to the Reflector Community | Reflector Humanoid Origin, the Studio Co-Founded by Mass Effect Director Casey Hudson, is Shutting Down | Humanoid Origin on LinkedIn BioWare alum Mac Walters freezes indie studio Worlds Untold amid funding search | Game Developer Report: Kwalee lays off "at least 10" people | GamesIndustry Torn Banner is Undergoing a Restructure and Layoffs | Torn Banner on LinkedIn Report: Lilith Games cuts 40 staff as Project Party undergoes changes | PocketGamer 2K Games' motion capture studio votes to unionise | GamesIndustry INVESTMENT INTERLUDE Exclusive: Sony is in talks to buy media powerhouse behind 'Elden Ring' | Reuters FromSoftware parent Kadokawa confirms buyout interest from Sony | GamesIndustry Play Ventures raises $140m in third gaming fund | GamesIndustry Tencent acquires majority stake in Kuro Games | GamesIndustry Bandai Namco subsidiary Bandai Namco Online to be dissolved and merged with parent company | GamesIndustry My.Games sells hyper-casual game publisher Mamboo | GamesIndustry

Another bad quarter for Embracer could have ripple effects throughout the industry. Also: Sony, Nintendo, Sega, and Square Enix earnings, legal trouble for NetEase executives, a strike at Activision Blizzard, and more. You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:01:12] - Sony Q2 FY25 Earnings [00:08:11] - Nintendo H1 FY25 Earnings [00:23:09] - Sega H1 FY25 Earnings [00:27:17] - Square Enix H1 FY25 Earnings [00:31:18] - Embracer Group Q2 FY25 Earnings [00:34:27] - Investment Interlude [00:35:50] - Quick Hits [00:41:10] - Labor Report [00:46:22] - FAFO SOURCES Consolidated Financial Summary for the Second Quarter Ended September 30, 2024 | Sony Consolidated Results for the Six Months Ended September 30, 2023 and 2024 | Nintendo Report on Patent Infringement Lawsuit | Pocketpair Consolidated Financial Results for the Six Months Ended September 30, 2024 | Sega Consolidated Financial Results for the Six Months Ended September 30, 2024 | Square Enix Embracer Group publishes Interim Report Q2 | Embracer Group Thunderful Group Interim Report January–September 2024 | Thunderful Rime developer Tequila Works files for insolvency | Games Industry More layoffs at Payload Studios | GamesIndustry America's Biggest Video Games Union Goes on Strike | Inverse NetEase employees have allegedly laundered up to $139.3 million in a trading scheme that involves nearly 30 companies | PC Gamer INVESTMENT INTERLUDE Modern Times Group buys Plarium for $620M | GamesBeat

It’s earnings season, so we’re digging into the numbers to help us understand if “Survive until ‘25” is still realistic or if things are going to remain difficult through next year. Also: Circana report on U.S. video game spending for September 2024, a few bright investment items, and a labor report that still shows bumpy roads ahead. You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! This episode is sponsored by Magic Mind, a supplement shot that includes ingredients to lower your stress, reduce fatigue, and boost your immune system. You can get 20% off your one time purchase of Magic Mind or up to 48% off your first subscription at https://www.magicmind.com/VECONOMY20 using the code VECONOMY20.  TIME STAMPS [00:03:56] - Desert Bus for Hope [00:05:05] - Circana Report on U.S. Video Game Spending for September 2024 [00:14:26] - EA Q2 FY 25 Earnings [00:27:11] - Microsoft Q1 FY24 Earnings [00:35:45] - Ubisoft Q2 FY25 Earnings [00:39:51] - Remedy Q3 FY24 Earnings [00:45:24] - Capcom Q2 FY25 Earnings [00:51:07] - Take-Two Q2 FY25 Earnings [00:58:35] - Video Game History Museum - Statement on DMCA 2024 Ruling [01:05:14] - Investment Interlude [01:12:06] - Quick Hits [01:14:54] - Labor Report SOURCES Electronic Arts Reports Strong Q2 FY25 Results | EA Earnings Release FY25 Q1 | Microsoft UBISOFT REPORTS FIRST-HALF 2024-25 EARNINGS FIGURES | Ubisoft Business Review: January - September 2024 | Remedy Consolidated financial results for the 2nd Quarter of FY2024 | Capcom Take-Two Interactive Software, Inc. Reports Results for Fiscal Second Quarter 2025 | Take-Two Interactive Second Quarter Fiscal FY25 Results and Guidance Summary | Take-Two Interactive Statement on the DMCA 2024 triennial review ruling | Video Game History Foundation INVESTMENT INTERLUDE ‘Happy Hunting’ Filmmaker Launches Wolf Haus Games With Funding From ‘PUBG’ Developer Krafton | Variety Radical Forge raises £2.6m | GamesIndustry The End of the Beginning | Space Ape Squido Studio raises $3M for social XR game DigiGods | GamesBeat Amplitude Studios is Independent after Sega Split | Romain de Waubert de Genlis on LinkedIn

A scathing report from Hindenburg Research surfaces shocking realities about Roblox’s investor relations and massive failures to protect youth on the platform. Also: Circana Report U.S. video game spending for August 2024, Google is now required to make external app stores more viable, and more.  You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! This episode is sponsored by Magic Mind, a supplement shot that includes ingredients to lower your stress, reduce fatigue, and boost your immune system. You can get 20% off your one time purchase of Magic Mind or up to 48% off your first subscription at https://www.magicmind.com/VECONOMY20 using the code VECONOMY20.  TIME STAMPS [00:01:26] - Circana Report on U.S. Video Game Spending for August 2024 [00:13:02] - Google Suffers Key Loss in Epic lawsuit [00:18:53] - Roblox Accused of Investor Malfeasance and Failing to Protect Kids [00:37:58] - Investment Interlude [00:47:58] - Quick Hits [01:06:01] - Labor Report [01:18:16] - Listener Question SOURCES Google must crack open Android for third-party stores, rules Epic judge | The Verge Roblox: Inflated Key Metrics For Wall Street And A Pedophile Hellscape For Kids | Hindenburg Research Bandai Namco Cuts Jobs, Culls Titles as Game Sector Woes Deepen | Bloomberg (Paywall) More Embracer Group layoffs: Star Trek Online developer Cryptic Studios is cutting jobs for the second time in a year | PC Gamer Don't Nod admits "challenging times" as "reorganisation project" puts up to 69 jobs at risk | GamesIndustry An Update on How We're Evolving League | Mark Merrill (@MarcMerrill) on Twitter Tequila Works lays off "small number" of staff, cancels unannounced game | GamesIndustry Surgent Studios Puts Games Division on Hiatus | Surgent Studios (@surgentstudios) on Twitter NCSOFT spins off 4 subsidiaries for AI, game development | The Korea Times Scoop: Netflix shuts down 'AAA' Team Blue gaming studio, amid gaming shake-up | Game File INVESTMENT INTERLUDE Ex-Disco Elysium devs announce two rival studios | Game Developer Saudi Arabia trims stake in Nintendo | GamesIndustry Keywords Studios to acquire US-based studio Certain Affinity | Keywords IOI Partners and Leslie Benzies’ Build A Rocket Boy enter a Worldwide Publishing and Distribution Agreement for AAA New Console and PC Game, MindsEye | IOI

Ubisoft has been under fire since a failed hostile takeover attempt in 2018. Since then, a toxic culture of misogyny and harassment was revealed in 2020 leading to an exodus of talent and a string of underperforming releases. Now, a critical game delay, a board review of operations, and a looming strike in France have tanked the share price as the company is fending off an activist investor bent on forcing the company to eject the Guillemot family and take private equity to save the ailing publisher. Also: Another very bad time for labor, another story reveals a power struggle inside Annapurna, and Behaviour acquires a new studio just one week after shutting another down. You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:00:35] - Ubisoft is Having Some Trouble [00:23:56] - What Happened Inside Annapurna Interactive [00:35:56] - Investment Interlude [00:44:28] - Quick Hits [00:57:28] - Labor Report SOURCES Ubisoft updates its financial targets for FY2024-25 | Ubisoft Ubisoft employees in France called to strike over return-to-office mandate | Game Developer Tencent, Guillemot Family Are Said to Consider Buyout of Ubisoft | Bloomberg (Paywall) Inside Annapurna Interactive's Mass Walkout | IGN Annapurna Video-Game Division Imploded Because of Power Struggle | Bloomberg (Paywall) Layoffs at Smite Developer Hi-Rez | Stewart Chisam (@schisam) on Twitter UK studio nDreams confirms layoffs could impact 17.5 percent of workforce | Game Developer Airship Syndicate Lays off 16 People | Airship Syndicate on LinkedIn NetEase subsidiary Skybox Labs lays off 25 people | GamesIndustry Report: VR studio XR Games placing 72 employees at 'risk of redundancy' | Game Developer Redhill Enters Consultation in Advance of Layoffs | Matias Myllyrinne on LinkedIn Concord Director Steps Down As Studio Behind Historic PlayStation Flop Waits For Sony's Decision | Kotaku Gamurs Group employees reportedly hit with more layoffs | GamesIndustry Mountaintop Lays off 13 People | Nicole Carpenter (@sweetpotatoes) on Twitter Maximum Games has Closed Merge Games | Merge Games (@mergegamesltd) on Twitter Sharkmob London faces layoffs after game cancelled | GamesIndustry The Sea is Quiet | Studio Black Flag INVESTMENT INTERLUDE Notice to the Extraordinary General Meeting of Remedy Entertainment Plc | Remedy Future Trash raises $5M to build its IP within Fortnite’s platform | GamesBeat Absurd Ventures launches new studio with Ascendant Studios staff | GamesIndustry Playtika to acquire mobile game maker SuperPlay for up to $1.95B | GamesBeat Behaviour Interactive acquires Red Hook Studios | Behaviour Interactive Devolver launches Big Fan Games, a publishing label dedicated to movie, TV and comic book adaptations | GamesIndustry Red Dead Redemption Lead Designer and Writer Christian Cantamessa and Mario + Rabbids Creative Director Davide Soliani Launch Videogame Company Day 4 Night Studios | Day 4 Night

The PlayStation 5 Pro defies all logic, reaching deeper into diehards’ pockets in the worst economy we’ve seen in 15 years. We break down the challenging economics (while also admiring Mark Cerny’s ASMR-style presentation). Also: GameStop earnings tumble, more Microsoft layoffs, Unity reverses a terrible decision, and can AI companies just stop stealing our stuff? You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! This episode is sponsored by Magic Mind, a supplement shot that includes ingredients to lower your stress, reduce fatigue, and boost your immune system. You can get 20% off your one time purchase of Magic Mind or up to 48% off your first subscription at https://www.magicmind.com/VECONOMY20 using the code VECONOMY20.  TIME STAMPS [00:01:43] - A Quick Chat about PAX West [00:11:27] - The PS5 Pro Defies Logic [00:25:43] - Concord’s Short-Lived Life [00:35:41] - Take This is in Danger of Closing [00:39:54] - OpenAI and Microsoft are Scraping Game Dev Work [00:45:11] - Unity’s Road to Redemption [00:51:30] - Gamestop Q2 FY25 Earnings [00:56:40] - Investment Interlude [01:09:55] - Quick Hits [01:14:45] - Labor Report SOURCES Welcome PlayStation 5 Pro, the most visually impressive way to play games on PlayStation | PlayStation Blog An important update on Concord | PlayStation Blog Take This is in Danger of Closing Forever | Take This This was essentially a two-week long DDoS attack': Game UI Database slowdown caused by relentless OpenAI scraping | Game Developer A message to our community: Unity is canceling the Runtime Fee | Unity GameStop Discloses Second Quarter 2024 Results | GameStop Microsoft lays off 650 more Xbox employees | The Verge Tilting Point making layoffs that could impact 20 percent of global workforce | Game Developer Rocksteady hit by layoffs after Suicide Squad: Kill the Justice League underperforms | Eurogamer Helldivers 2 support studio Toadman Interactive to shut offices in Sweden and Norway | Games Industry Tencent, NetEase Rethink Japan Approach as Game Strategy Stalls | Bloomberg (Paywall) Lost Boys Interactive has Initiating Another Round of Layoffs | Lost Boys Interactive on LinkedIn Merge Games closes Chelford office and announces layoffs | Games Industry Until Dawn remake studio Ballistic Moon lays off staff ahead of the game's release in October | Eurogamer Incubator Dutch Game Garden shuts down in January 2025 | GamesBeat 3 months after firing Dr Disrespect, Deadrop developer Midnight Society confirms 'significant' layoffs | PC Gamer INVESTMENT INTERLUDE Remedy and Annapurna announce a strategic cooperation agreement on Control 2 | Remedy Annapurna Video-Game Team Resigns, Leaving Partners Scrambling | Bloomberg (Paywall) Hopoo Games (Risk of Rain) Developers Join Valve | Hopoo Games (@hopoogames) on Twitter Some Good News for Timbre Games | Joe Nickolls on LinkedIn Nexon to Establish MINTROCKET Corporation | Nexon Urgent Call for Strategic and Structural Changes at Ubisoft Entertainment | AJ Investments Embracer Group receives early payment for sale of Saber assets. | Embracer Group

We had a hunch that EA Sports College Football was going to be big, and it seems to have single-handedly swung the U.S. video game spending report in a positive direction. Also: Lots of earnings, PS5 price hikes, some acquisitions, and more. You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:01:46] - Circana Report on U.S. Video Game Spending for July 2024 [00:09:36] - Square Enix Q1 FY25 Earnings [00:16:53] - Nintendo Q1 FY25 Earnings [00:26:38] - Sony Q1 FY25 Earnings [00:36:43] - Remedy Q2 FY24 Earnings [00:44:59] - Sega Q1 FY25 Earnings [00:49:19] - Take-Two Q1 FY25 Earnings [00:57:16] - Embracer Group Q1 FY25 Earnings [01:02:14] - WB Eyes Games Division Sell-Off [01:11:39] - Investment Interlude [01:19:06] - Quick Hits [01:25:32] - Labor Report SOURCES Square Enix Financial Results Briefing Session | Square Enix Nintendo Consolidated Results for the Three Months Ended June 30, 2023 and 2024 | Nintendo Sony FY2024 Q1 Earnings Announcement | Sony Remedy Entertainment Plc: Half year financial report | Remedy Sega Q1 for the Fiscal Year Ending March 2025 Results Presentation | Sega Sammy Take-Two Interactive Software, Inc. Reports Results for Fiscal First Quarter 2025 | Take-Two Embracer Group publishes Interim Report Q1 | Embracer Group Report: WB Discovery looking to sell off games, other divisions to prevent total breakup | Game Developer Mobile dev Shipyard Games shuts down | Game Developer Meta shuts down Quest developer Ready at Dawn | Game Developer VR studio Archiact is closing down | GamesIndustry 5BY5 Interactive has Closed | Ty Buser on LinkedIn Ubisoft cuts 45 jobs across Cary and San Francisco teams | Game Developer Visual Concepts lays off staff at Lego 2K Drive South studio | Game Developer Payload Studios lays off 25% of staff | GamesIndustry INVESTMENT INTERLUDE KRAFTON Strengthens Global Presence Through Strategic Integration of Tango Gameworks and Hi-Fi RUSH IP | Krafton Virtuos expands into the UK with acquisition of Third Kind Games | Virtuous North Beach Games Opens Prague Studio; Announces Stranded Deep 2 | North Beach Games Publisher Headup Spins off Developer Goon Squad into Fully Independent Studio | Games Press Reforged Studios does a double acquisition, buys Ground Shatter and Extra Mile | Game Developer