Virtual Economy

2025 has continued the trend of layoffs, consolidation, and privatization. The gulf between AAA and everyone else is widening, as the AI bubble strains before an inevitable burst. With November's Circana report coming in bleak after months of stronger performance, 2026 will continue to challenge us all. BUT... there is reason to hope. Unions are growing in number and reach and studios doomed by AAA mega-corps are finding a way to survive. We need to stick together to not only survive, but thrive. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:07:28] - Circana Report on U.S. Video Game Spending for November 2025 [00:27:31] - Sony and Tencent Settle Light of Moritram Lawsuit [00:28:43] - Investment Interlude [00:37:27] - Quick Hits [00:43:53] - Labor Report  SOURCES Sony and Tencent settle lawsuit over "slavish clone" of Horizon: Zero Dawn | GamesIndustry INVESTMENT INTERLUDE Tencent makes minority investment in France's Drama Studios | GamesIndustry Disney to Invest $1 Billion in OpenAI in Major Deal That Boosts Sora in Hollywood | The Hollywood Reporter Bandai Namco sells Limbic Entertainment to "private investor" | GamesIndustry LABOR REPORT Naughty Dog Studio Orders Employee Overtime for 'Intergalactic' | Bloomberg (Paywall) Days after launching their first indie game, everyone responsible for publishing it was laid off: 'We had a Slack channel with everyone in it, and then you see them leaving one by one' | PC Gamer We are crowd funding Wreckreation | Three Fields Funcom may have closed down Metal: Hellsinger studio The Outsiders, but its co-founder and Battlefield vet David Goldfarb says it's not over yet | PC Gamer The Studio Behind Doom Just Unionized | Kotaku

Warner Bros. is selling itself like a $1.50 hot dog at Costco, and everyone wants a bite. Before the weekend, Netflix looked like it had a clear path to regulatory review. But now, New Paramount is taking a swing with a hostile takeover. Things are about to get ugly. Regardless of who wins, though, we lose. Consolidation continues and consumers pay the price. Also: Nintendo, Square Enix, Take-Two, Embracer Group, and Sony earnings; Circana's report on U.S. video game spending for October 2025; and another grim labor report. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:06:02] - PAX Unplugged Roundup [00:23:44] - Circana Report on U.S Video Game Spending for October 2025 [00:31:49] - Sony Earnings for Q2 FY26 [00:36:49] - Nintendo Earnings for H1 FY26 [00:48:15] - Square Enix Earnings for H1 FY26 [00:54:31] - Take-Two Earnings for Q2 FY26 [00:55:39] - Embracer Group Earnings for Q2 FY26 [00:59:48] - iam8bit is Suing Skybound [01:02:40] - Tencent Pauses Light of Moritram Promotion During Sony Lawsuit [01:03:35] - Krafton CEO Accused of Using ChatGPT to Get Out of Unknown Worlds Earnout [01:06:43] - Investment Interlude [01:24:37] - Quick Hits [01:29:47] - Labor Report [01:38:13] - FAFO SOURCES Q2 FY2025 Consolidated Financial Results | Sony Nintendo Earnings for H1 FY2026 | Nintendo HUGE blow to Nintendo: head of U.S. patent office takes RARE step to order reexamination of "summon subcharacter and let it fight in 1 of 2 modes" patent | Games Fray Financial Results Briefing Session Six-Month Period Ended September 30, 2025 | Square Enix Take-Two Interactive Software, Inc. Reports Results for Fiscal Second Quarter 2026 | Take-Two Grand Theft Auto VI is Now Set to Launch November 19, 2026 | Rockstar Embracer Group publishes Interim Report Q2, July–September 2025 | Embracer Group Embracer Group divests Arc Games and Cryptic Studios | Embracer Group Arc Games Is Now an Independent Publisher | Arc Games iam8bit is suing Skybound Game Studios alleging fraud and theft of designs | Engadget Tencent agrees to stop promoting its Horizon ripoff during Sony lawsuit | Engadget Krafton CEO accused of forming secret task force 'Project X' to seize control of Unknown Worlds | Game Developer Remember Postal? | PC Gamer INVESTMENT INTERLUDE Digiphile - About Us | Digiphile Saudi Fund to Own Almost All of Electronic Arts After Buyout | WSJ via MSN Netflix to Acquire Warner Bros. Following the Separation of Discovery Global for a Total Enterprise Value of $82.7 Billion (Equity Value of $72.0 Billion) | Netflix Netflix Sells Spry Fox Back to Founders | GameFile ‍Paramount launches all-cash tender offer to acquire Warner Bros. Discovery | Paramount LABOR REPORT The Rockstar Workers Fired Before They Could Finish GTA 6 | People Make Games The Messages Rockstar Saw Before Firing 34 Union Members | People Make Games NetEase racks up its third studio casualty in one week, kneecapping dev working on a Warhammer MMO | PC Gamer Splash Damage places entire studio into consultation ahead of redundancies | GamesIndustry Three Fields Entertainment puts entire studio in consultation | Fiona Sperry on LinkedIn Coatsink to lay off half its staff due to "challenging co-development market" | GamesIndustry UK publisher Outright Games confirms layoffs | Game Developer Atomhawk is Closing its Canadian Studio | Atomhawk on LinkedIn Layoffs at Gorilla Tag dev Another Axiom | Jonathan Dearborn on LinkedIn

We're joined by two special guests on this milestone episode. Please welcome Andy Pan (the only person who has previously co-hosted a show with us) and Greg Alderton, Virtual Economy's lead moderator! With 14,000 people laid off, studios shuttered, and projects abandoned, Amazon seems ready to give up on most or all of its gaming dreams. Also: EA earnings ride off into the sunset, Capcom posts a strong quarter, Remedy's in trouble, and Microsoft is inscrutable. Also: Sony responds to Tencent's request to dismiss the Light of Moritram lawsuit, Circana report on U.S. video game spending for September 2025, and Microsoft is a little too cozy with the U.S. government.  You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:01:12] - Investment Interlude/Divestment Dinterlude [00:11:01] - Quick Hits [00:24:08] - Labor Report [01:06:11] - FAFO Award SOURCES INVESTMENT INTERLUDE NetEase divests Fantastic Pixel Castle as studio hunts for new publisher to avoid closure | GamesIndustry Neon Doctrine is Closing, Folding into Raw Fury | Iain Garner on LinkedIn Neon Doctrine is Closing, Folding into Raw Fury | Vlad Tsypljak on LinkedIn Warner Bros. Discovery Initiates Review of Potential Alternatives to Maximize Shareholder Value | Warner Bros. Discovery LABOR REPORT Amazon Makes 'Significant' Cuts In Video-Game Division | Bloomberg (Paywall) Ubisoft RedLynx Proposes Strategic Refocus on Small Screens | Redlynx Ubisoft Massive is Restructuring | Massive Open Letter to the Executive Leadership at Build A Rocket Boy | IWDB GameWorkers Grand Theft Auto made him a legend. His latest game was a disaster | BBC Netflix reportedly shutters studio behind Squid Game mobile spinoff | Engadget Rovio is laying off 36 staff, says Angry Birds Dream Blast has 'not been performing as expected' | VGC Testronic shuts down another studio, this time in Bucharest | Game Developer Report: Metroid Dread developer MercurySteamworks accused of retaliation and forced crunch | Game Developer "Si algo hace bien MercurySteam es jugar con el miedo porque no hay otro lugar donde ir": Así se ha degradado el ambiente laboral en uno de los estudios de videojuegos más grandes de España | 3DJuegos Krafton declares transformation into an "AI-first" company, investing over KRW 100 billion. | Kraton Heart Machine making layoffs and ending development on Hyper Light Breaker | Game Developer Outerloop Layoffs | Chandana Ekanayake on Bluesky 'Grand Theft Auto' Studio Accused of Union Busting After Firings | Bloomberg (Paywall) Battle.net Workers Unionize As Microsoft Neutrality Agreement Expires | Aftermath

We're joined by two special guests on this milestone episode. Please welcome Andy Pan (the only person who has previously co-hosted a show with us) and Greg Alderton, Virtual Economy's lead moderator! With 14,000 people laid off, studios shuttered, and projects abandoned, Amazon seems ready to give up on most or all of its gaming dreams. Also: EA earnings ride off into the sunset, Capcom posts a strong quarter, Remedy's in trouble, and Microsoft is inscrutable. Also: Sony responds to Tencent's request to dismiss the Light of Moritram lawsuit, Circana report on U.S. video game spending for September 2025, and Microsoft is a little too cozy with the U.S. government.  You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:05:44] - Remembering Tomonobu Itagaki [00:10:32] - Episode 200 Celebration [00:34:14] - Circana Report on U.S. Video Game Spending for September 2025 [00:56:18] - Sony Responds to Tencent's Request to Dismiss Light of Moritram Lawsuit [01:06:57] - EA Earnings [01:17:51] - Capcom Earnings [01:27:49] - Remedy Earnings [01:43:45] - Microsoft Earnings [02:16:00] - Why Is Microsoft Allowing the U.S. Government to Use the Halo IP? SOURCES "I Told Him I Loved Him, Because I Do" - A Tribute To The Late Dead Or Alive Creator Tomonobu Itagaki | Time Extension SIE Opposition to Motion to Dismiss 4142-0511-3185 v.2 | United States District Court - Northern District of California Electronic Arts Reports Q2 FY2026 | EA EA and Stability AI partner to empower artists, designers, and developers | EA United Videogame Workers-CWA Statement on Proposed Electronic Arts Buyout | UVW-CWA Consolidated Results for the Six Months Ended June 30, 2025 | Capcom Inside information, profit warning: Remedy Entertainment Plc lowers operating profit (EBIT) outlook for 2025 and publishes preliminary Q3 key financial figures | Remedy Change of CEO in Remedy Entertainment Plc | Remedy Business Review - January - September 2025 | Remedy Earnings Release FY26 Q1 | Microsoft

With prices skyrocketing this generation, Microsoft has increased costs on Game Pass' top tier while cutting offerings on others. We discuss the broader implications as price-sensitive players get boxed out. Also: Unity security alert sends devs scrambling, Tencent fires back at Sony's Horizon: Zero Dawn lawsuit, and private equity rears its head once more. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:01:40] - Game Pass Price Hike Hits Hard [00:29:53] - Unity Security Flaw Alert [00:32:53] - Tencent Hits back at Sony's Horizon: Zero Dawn lawsuit [00:50:13] - Investment Interlude [00:57:46] - Quick Hits [01:01:19] - Labor Report SOURCES Updates to Xbox Game Pass: Introducing Essential, Premium, and Ultimate Plans | Xbox Unity Platform Protection: Take Immediate Action to Protect Your Games and Apps | Unity SONY INTERACTIVE ENTERTAINMENT LLC v TENCENT HOLDINGS | United States District Court, Northern District of California INVESTMENT INTERLUDE Ubisoft Launches Brand-New Subsidiary - Vantage Studios | Ubisoft Splash Damage breaks away from Tencent | GamesIndustry Fragbite sells Playdigious to Griffin Gaming Partners for €10.5 million | Game Developer LABOR REPORT Dune: Awakening developer Funcom announces redundancies | GamesIndustry The Outsiders is closing | David Goldfarb on Bluesky Testronic makes 4.8 percent of its total workforce redundant, closes Madrid and Belgrade studios | Game Developer Digital Extremes layoffs | Justin Kranzl on LinkedIn A Studio Update from Avalanche Studios Group | Avalanche

EA is going private in a $55 Billion deal. Saudi Arabia's Public Investment Fund, Jared Kushner's Affinity Partners, and Silver Lake will own the company after the deal closes in Q1 FY27. We discuss what that means, explained how leveraged buyouts work, and share our concerns for the future of EA's workforce and identity. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise!

PAX West 2025 felt like home for the first time since the COVID-19 lockdown ended. We recap our favorite games and tech from the show. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise!

Following the flagging performance of Destiny 2 and Marathon woes, Sony has jettisoned embattled Bungie studio head Pete Parsons. They've also announced significant hikes on PS5 prices. Also: Another Subnautica 2 lawsuit, a BioShock shakeup, and Frost Giant studio head Tim Morten leads with transparency and accountability. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:02:07] - PlayStation 5 Price Increases in the U.S. [00:05:25] - Unknown Worlds v Cleveland, McGuire, and Gill [00:14:33] - Circan Report on U.S. Video Game Spending for July 2025 [00:19:22] - Investment Interlude [00:26:45] - Quick Hits [00:34:09] - Labor Report [00:50:42] - FAFO SOURCES PlayStation 5 price changes in the U.S. | PlayStation Blog Unknown Worlds v Cleveland, McGuire, and Gill | The Court of Chancery of the State of Delaware Guy Who Tried To Fight Nintendo Piracy Lawsuit Without A Lawyer Will Now Pay $2 Million | Kotaku INVESTMENT INTERLUDE Saudi Arabia's Qiddiya Acquires EVO Part-Owner RTS | Muhannad Aldawood on LinkedIn Atari Announces Strategic IP Agreement With Ubisoft To Revive Five Acclaimed Titles | Atari LABOR REPORT Cloud Chamber lays off "unspecified" number of staff as Rod Fergusson is parachuted in to lead troubled BioShock 4 production | GamesIndustry Take-Two Guts 'BioShock' Studio After a Decade of Development | Bloomberg (Paywall) Frost Giant CEO Tim Morten says layoffs are possible after Stormgate underperforms | Game Developer Frost Giant CEO Tim Morten Reflects on Stormgate's Failure | Tim Morten on LinkedIn Dreamhaven is Going through Layoffs | Mike Morhaime on LinkedIn Crystal Dynamics Layoffs | Crystal Dynamics on LinkedIn Ubisoft is cutting jobs within its publishing team | Game Developer NetEase shuts down Rich Vogel-led T-Minus Zero Entertainment | Game Developer Hundreds of Diablo Game Developers Join Communications Workers of America | CWA

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