Virtual Economy

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

Amidst new allegations of insider training, GameStop CEO Ryan Cohen has shuttered Game Informer magazine after 33 years. Also: Earnings time is here, more Bungie layoffs, Netherrealm layoffs, Circana report for June 2024, voice actors on strike, IGN parent Ziff Davis does Humble Games publishing and its partners dirty, and more. 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.  You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:01:47] - Circana Report on U.S. Video Game Spending for June 2024 [00:11:02] - Ubisoft Q1 FY2025 Earnings [00:17:17] - Paradox Q2 FY2024 Earnings [00:20:55] - Capcom Q1 FY2024 Earnings [00:27:44] - Microsoft Q4 FY2024 Earnings [00:39:18] - EA Q1 FY2025 Earnings [00:49:38] - Investment Interlude [00:53:03] - Quick Hits [01:00:32] - Labor Report SOURCES Ubisoft Q1 FY2025 Earnings | Ubisoft Interim report January – June 2024 | Paradox Consolidated financial results for the 1st Quarter of FY2024 | Capcom Earnings Release FY24 Q4 | Microsoft EA Earnings Release Q1 FY25 | EA Bethesda Game Studios employees form a ‘wall-to-wall' union | TechCrunch World of Warcraft developers form Blizzard's largest and most inclusive union | The Verge MORTAL KOMBAT DEVELOPER NETHERREALM STUDIOS HIT WITH MASS LAYOFFS | Insider Gaming Jam City lays off nearly 85 employees as industry fails to hit 'upward trend' | Game Developer Axis Studios goes into administration | Televisual Armor Games Studios has seemingly laid off its publishing team | GamesIndustry Probably Monsters lays off incubation team | Brandi House on LinkedIn Forte shuts down Rumble Entertainment, its second studio closure in two months | GamesIndustry The New Path for Bungie | Bungie Game Informer is Gone | Game Informer INVESTMENT INTERLUDE Warner Bros. Games Acquires Player First Games | Warner Bros. via BusinessWire Look North World raises $4.5m in overall funding | GamesIndustry

Microsoft is making sweeping changes to Game Pass, seemingly to avoid bleeding out on Call of Duty sales. Also: Circana report for May 2024, SAG-AFTRA updates, more Embracer and Paradox cuts, out of control EA executive pay in the face of layoffs, and more. 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.  You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:01:13] - SAG-AFTRA Updates Independent Development Contracts [00:06:42] - Circana Report on U.S. Video Game Spending for May 2024 [00:13:33] - Microsoft Makes Big Changes to Game Pass [00:28:56] - Investment Interlude [00:44:06] - Quick Hits [00:47:48] - Labor Report SOURCES Life By You is Cancelled | Paradox Forums Paradox Interactive to close down Paradox Tectonic | Paradox Former Paradox Dev comments on Life by You Cancelation | Willem Delventhal on LinkedIn Cities Skylines 2 - Console Development Status | Paradox Forums Pieces Interactive has Been Shuttered by Embracer Group | Pieces Interactive Embracer-owned Gothic, Risen and ELEX developer Piranha Bytes closes | Eurogamer Former Piranha Bytes devs form Pithead Studio | GamesIndustry Galvanic Games is Closing Down | Galvanic Games (@GalvanicGames) on Twitter GOODBYE, HEROES OF ARMANTIA AND KOJI VILLAGERS | Challengers Games Gameloft Toronto staff laid off after studio 'substantially' reduces production activity | Game Developer Perfect World cuts staff in multi-unit layoffs, reportedly suspends game projects | Game Developer Network N lays off eight from games marketing agency Project N | GamesIndustry Gamurs Group reportedly lays off unknown number of staff | GamesIndustry EA execs earned $60 million in 2024 despite layoffs and office closures | Game Developer INVESTMENT INTERLUDE Capcom Makes Minimum Studios Co., Ltd. a Subsidiary Through Share Acquisition | Capcom Keywords Studios reaches £2.2bn acquisition agreement with Swedish investment company EQT | GamesIndustry Daybreak Games, Singularity 6 to Collaborate on Development of Palia | Daybreak Games Arc System Works opens European branch | Arc Systems Works EU (@ASW_Official_EU) on Twitter Dutch publisher Mystic Forge nets €2 million to help indies get to market | Game Developer Kwalee makes minority investment in Devolver Digital | GamesIndustry PULLUP Entertainment Announces its results for the 2023/24 financial year | Pullup Series Entertainment and Pixelberry | Pixelberry Stellar Blade developer Shift Up raises $320m in IPO | GamesIndustry

With the video game industry in the midst of the worst labor crisis we've ever seen, collective action is crucial. We're joined by Chrissy Fellmeth, Kelly Larkin, and Andrew Buczacki to discuss how the International Alliance of Theatrical Stage Employees is supporting labor organization and unionization in the video game industry. Additionally, you can find a transcript of this interview here. For more on IATSE, you can visit their website, YouTube, and Twitch channels. Additionally, you can find more resources at GameWorkers.org and the GameWorkers.org LinkUp.

E3 might be dead, but its spirit is clinging to life (even if just by sheer will of the industry and the JW Marriott lobby). We discuss the trends and big learnings from the showcases and a quick visit to SGF Play Days. Also: GameStop earnings, Circana report for April 2024, the latest labor report, and more. 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.  You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:00:46] - Summer Game Fest Analysis [00:56:01] - Circana Report on U.S. Video Game Spending for April 2024 [01:01:38] - Gamestop Q1 FY24 Earnings [01:04:37] - Investment Interlude [01:07:00] - Quick Hits [01:26:45] - Labor Report SOURCES GameStop Q1 FY 2024 Earnings | GameStop Gameloft Romania cuts 136 jobs and closes Cluj studio | Game Developer Behaviour to lay off up to 95 employees | GamesIndustry Twitch terminates all members of its Safety Advisory Council | CNBC Sumo Group Update | Sumo Group Just Cause developer Avalanche closing two studios and laying off 50 workers | Game Developer WorldWalker Games Goes Into Hibernation | WorldWalker Games (@wildermyth) on Twitter Gone Fishin'! | League of Geeks INVESTMENT INTERLUDE Former Ubisoft Massive Studio Head Leads New Studio, Bespoke Pixel | Bespoke Pixel

Atari has finally driven its mortal enemy, Intellivision, and heard the lamentations of its pixels. Also: So. Many. Earnings. We're covering Sony, Square Enix, Ubisoft, Take-Two, and Embracer. Also, a number of new studios were founded as the labor winter trudges on. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:02:32] - Sony Q4 and full year FY23 Earnings [00:17:46] - Square Enix Q4 and full year FY24 Earnings [00:25:29] - Ubisoft Q4 and full year FY24 Earnings [00:31:04] - Take-Two Q4 and full year FY24 Earnings [00:42:40] - Embracer Group Q4 and full year FY24 Earnings [00:47:13] - Investment Interlude [00:59:33] - Quick Hits [01:04:26] - Labor Report [01:08:25] - FAFO SOURCES FY2023 Consolidated Financial Results | Sony Consolidated Financial Results for the Fiscal Year Ended March 31, 2024 | Square Enix UBISOFT REPORTS FULL-YEAR 2023-24 EARNINGS FIGURES | Ubisoft Take-Two Interactive Software, Inc. Reports Results for Fourth Quarter and Fiscal Year 2024 | Take-Two  EMBRACER GROUP PUBLISHES INTERIM REPORT Q4 | Embracer Group CHANGE OF CFO AND DEPUTY CEO IN EMBRACER GROUP AB | Embracer Group Mighty Kingdom Is Laying Off 28% of Staff | Mighty Kingdom (@MightyKingdom) on Twitter Major Layoffs at Phoenix Labs | Nicole Carpenter (@sweetpotatoes) on Twitter Fragbite Group files bankruptcy for Fall Damage months after purchasing it | Game Developer INVESTMENT INTERLUDE ATARI ACQUIRES INTELLIVISION BRAND | Atari Steel City Interactive raises £15m in funding | GamesIndustry Former Deviation Games devs form new Sony studio | Eurogamer Playmob acquired by PlanetPlay parent to create new green video games powerhouse | PR Newswire ACTIVISION ANNOUNCES ELSEWHERE ENTERTAINMENT | Activision ‘Typical Gamer' Andre Rebelo Launches ‘Super Studio' Gaming Company JOGO With $2 Million Investment Into ‘Fortnite' Content | Variety Relic partners with investment firm to go fully indie again | Game Developer Amazon Games expands global footprint with new development studio in Romania | Amazon Games Note: The Suez Crisis actually took place in 1956, not in 1952. Now, I bet you're wondering why this note is here. GUESS YOU'LL HAVE TO LISTEN TO THE SHOW, FRIEND!

Sony dug a giant hole and dumped all the Helldivers 2 goodwill into the pit (while cutting off 177 countries). Microsoft lit itself on fire and burned player sentiment to the ground. Good times. Also: Take-Two layoffs target a BAFTA winner, Unity has a new CEO with a massive compensation package, the Circana report for March, and earnings, earnings, earnings. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:03:56] - Unity's New CEO  [00:13:42] - Circana Report on U.S. Video Game Spending for March 2024 [00:25:08] - Investment Interlude [00:33:51] - Quick Hits [00:40:46] - Labor Report [01:24:21] - Nintendo Q4 FY24 Earnings [01:26:54] - Remedy Q1 FY24 Earnings [01:29:51] - Capcom Q4 FY24 Earnings [01:35:38] - EA Q4 FY24 Earnings [01:42:44] - FAFO Awards (Razer, PlayStation) SOURCES Unity Appoints Matthew Bromberg as New CEO | Business Wire Belka Games lays off 20% of workforce as it becomes "more critical" of future titles | PocketGamer Keoken Interactive Shuts Down (Temporarily, but fully) | Keoken Interactive on Facebook Paladin Studios is Shutting Down | Paladin Studios on LinkedIn Lightforge is Laying Off Staff and Pausing Development On Project O.R.C.S. | Matt Shembari on LinkedIn Prytania Media has Closed the Third of its Four Studios | Dawon Entertainment on LinkedIn Take-Two reportedly shuts down Roll7 and Intercept Games, Private Division suffers layoffs | GamesIndustry Microsoft Closes Redfall Developer Arkane Austin, HiFi Rush Developer Tango Gameworks, and More in Devastating Cuts at Bethesda | IGN Dinga Bakaba Shares Thoughts on Microsoft Studio Closures | Dinga Bakaba (@DBakaba) on Twitter Microsoft's Xbox Is Planning More Cuts After Studio Closings | Bloomberg (Paywall) Inside Microsoft's Xbox turmoil | The Verge Microsoft says it needs games like Hi-Fi Rush the day after killing its studio | The Verge Workers seek to alter the balance of power in Canadian video game industry | Polygon Razer, Inc. to Pay More Than $1.1 Million for Misrepresenting the Performance and Efficacy of Supposed “N95-Grade” Zephyr Face Masks | FTC CONSOLIDATED FINANCIAL HIGHLIGHTS | Nintendo Business Update - January-March 2024 | Remedy Consolidated Financial Results for the year ended March 31, 2024 | Capcom Electronic Arts Reports Q4 and FY24 Results | EA INVESTMENT INTERLUDE Atari relaunches Infogrames, immediately buys Totally Reliable Delivery Service | Game Developer Overwolf acquires Nitro | Uri Marchand on LinkedIn CORSAIR Pursuing an Acquisition of Fanatec, the Leading Brand for Sim Racing Hardware | Corsair

The Embracer Group name is going away, splitting its mega-conglomerate into three in an attempt to move on from its destructive legacy. But with Lars Wingefors sticking around to lead the holding company, our expectations are tempered. Also: Meta loses billions more as it tries to become the Windows of MR and earnings season is here! You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:01:54] - Embracer Group Splits Into Three Pieces [00:32:32] - Meta MR Losses Mount [00:42:03] - Paradox Q1 FY24 Earnings [00:44:16] - Microsoft Q3 FY24 Earnings [00:49:10] - Investment Interlude [00:53:08] - Quick Hits [01:01:27] - Labor Report SOURCES EMBRACER GROUP ANNOUNCES ITS INTENTION TO TRANSFORM INTO THREE STANDALONE PUBLICLY LISTED ENTITIES AT NASDAQ STOCKHOLM | Embracer Group ASMODEE SECURES FINANCING AGREEMENT OF EUR 900 MILLION AS PART OF SEPARATION, DELEVERAGING THE REMAINING EMBRACER GROUP | Embracer Group OPEN LETTER BY EMBRACER GROUP CEO ABOUT THE TRANSFORMATION INTO THREE STANDALONE PUBLICLY LISTED ENTITIES | Embracer Group A New Era for Mixed Reality | Meta Interim report January – March 2024 | Paradox Earnings Release FY24 Q3 | Microsoft Modern Wolf lays off six staff in studio restructuring | Game Developer ‘It's been really painful': Ex-Lionhead devs explain why they've announced, and shelved, a new game | VGC INVESTMENT INTERLUDE Atari Revives Infogrames as a Publishing Label | NewsWire Krafton acquires minority stake in Forever Skies developer Far From Home | Game Developer Rummikub maker Goliath continues push into hobby gaming with Lucky Duck Games buyout | BoardGameWire CMON buys Japon Brand, the company which introduced the world to Love Letter and Machi Koro | BoardGameWire

Two months after Take-Two said it wasn't planning layoffs it has… well… by now you know. Also, we're trying something new and fun with this episode. Join us for a lively discussion about keeping the industry healthy and a deep dive into what the heck differentiates III from AA! You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:01:45] - Discussion Time! (How to build a healthier industry and just what does “indie” mean these days?” [00:23:49] - Investment Interlude [00:34:19] - Quick Hits [00:41:01] - Labor Report SOURCES Bold Spirit Games Has Laid Off 30 | Bold Spirit Games (@BoldSpiritGames) on Twitter Palia Dev Lays Off 35 Percent of Workers Only a Few Months After Beta Release | IGN EA reportedly kills Apex Legends' UK-based QA team | Game Developer Take-Two Interactive - Form 8-K | Take-Two Interactive Meow Wolf to cut 165 jobs across multiple states | Santa Fe Reporter Kwalee lays off unknown number of staff as it "reshapes business" | GamesIndustry Jeff and Annie Strain's Prytania Media Have Closed Possibility Space | Russell Peterson on LinkedIn INVESTMENT INTERLUDE Atari has bought Rollercoaster Tycoon 3 for $7m | Eurogamer Following Baldur's Gate 3, WotC And Hasbro Are Investing $1 Billion In Their AAA Game Ecosystem | GameSpot PUBG maker Krafton leads $15M investment in to UK studio Red Rover Interactive | Game Developer

We've come full circle. Embracer Group just took a massive loss to get some much-needed cash in hopes of filling a seemingly bottomless hole of debt. Saber is gone. Zen is gone. 4A is gone. Gearbox is gone. Also, SAG-AFTRA may strike against video game companies, some new studios are popping up, but many others are still laying off and closing. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:00:30] - GDC and PAX East Recap [00:11:27] - Gaming Safety Coalition [00:14:53] - Circana Report on U.S. Video Game Spending for February 2024 [00:29:57] - GameStop Q4 FY24 Earnings [00:33:03] - Investment Interlude [00:47:40] - Divestment Dinterlude [01:03:42] - Quick Hits [01:16:04] - Labor Report SOURCES Gaming Safety Coalition | Gaming Safety Coalition GameStop Reports Fourth Quarter and Fiscal Year 2023 Results | GameStop Report: Australian studio Torus Games effectively shuts down after 30 years | Game Developer Eggnut is Closing | Eggnut (@eggnutgames) on Twitter Deviation Games is Closing | Kriste Stull on LinkedIn Rooster Teeth Shut Down By Warner Bros. Discovery | Deadline Hollywood Crop Circle Update | Jennifer Klasing on LinkedIn Velan Studios Layoffs | Velan Studios on LinkedIn Something Wicked Layoffs | Eric Webb on LinkedIn Smilegate Barcelona reportedly closed and all employees let go | VGC Nintendo makes cuts to US QA contractors | GamesIndustry A MESSAGE FROM MAX HOBERMAN, CEO OF CERTAIN AFFINITY | Certain Affinity SAG-AFTRA “50/50, If Not More Likely” To Strike Against Video Game Companies Soon | Deadline Hollywood Microsoft voluntarily recognizes 600-strong Activision Blizzard QA union | Game Developer Sega of America workers ratify union contract, protecting 150 employees | Polygon INVESTMENT INTERLUDE TURTLE BEACH ANNOUNCES TRANSFORMATIONAL ACQUISITION OF PDP | Turtle Beach Virtuos acquires Beyond-FX | GamesIndustry Sensor Tower acquires Data.ai | GamesIndustry Stellar Blade studio Shift Up files for IPO | GamesIndustry Shinji Mikami founds new studio, Kamuy Inc. | Game Developer Popularium secures $2m seed funding for next game by Magic: The Gathering creator Richard Garfield | GamesIndustry EMBRACER GROUP CEASES ALL OPERATIONS IN RUSSIA THROUGH THE DIVESTMENT OF SELECTED ASSETS FROM THE OPERATIVE GROUP SABER INTERACTIVE | Embracer Group Tencent reportedly takes over two ByteDance games teams | GamesIndustry The developer of the two-dimensional game "Nikke" applied for listing at a valuation of 3 trillion won, and Tencent held 24% of the shares Game Grand View | GameLook.com.cn

Triple-A game development as we know it is unsustainable. It doesn't matter if a game succeeds or fails, the corporate machine is grinding developers up and spitting them out by the thousands. Things need to change.  You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:01:29] - Circana Report on U.S. Video Game Spending for January 2024 [00:07:04] - Investment Interlude [00:18:43] - Quick Hits [00:21:25] - Labor Report [00:43:33] - FAFO! SOURCES An Important Update from PlayStation Studios | SIE Blog Difficult News About Our Workforce | SIE Blog Continuing to evolve our business and teams | EA Respawn's Star Wars FPS Is Canceled, But Work on Next Jedi Game, Black Panther and Iron Man Will Continue | IGN Marcus Lehto has departed EA | Marcus Lehto (@game_fabricator) on Twitter EA cutting "small number" of staff as it sunsets two mobile games | GamesIndustry Supermassive Confirms Layoffs | Supermassive (@SuperMGames) on Twitter British Game Maker Supermassive Set to Lay Off 90 Workers | Bloomberg (Paywall) Die Gute Fabrik is Stopping Production | Die Gute Fabrik (@gutefabrik) on Twitter ESL Faceit Group lays off 15% of staff 2 years after $1.5B merger | GamesBeat Star Citizen developer hit with layoffs amid claims of a "highly toxic company" | Eurogamer Wildlife Studios is laying off 21 percent of its workforce | Game Developer Keoken Studios lays off Four | Koen Deetman on LinkedIn Layoffs at Radical Forge | Radical Forge (@RadicalForge) on Twitter Deck Nine Games lays off 20 percent of staff | Game Developer ‘Grand Theft Auto' Maker Rockstar Games Asks Workers to Return to Office Five Days a Week | Bloomberg (Paywall) Nintendo Files Lawsuit Against Creators of Switch Emulator Yuzu | Stephen Totilo (@stephentotilo) on Twitter INVESTMENT INTERLUDE GamerSafer acquires Minecraft-focused Minehut server community | GamesBeat Embracer Group to Sell Saber, Developer of a New ‘Star Wars' Game Remake, in $500 Million Deal | Bloomberg (Paywall)

The console market is going through major changes as hardware prices stay high and first party needs to pivot audience strategy. Nintendo may be struggling to find a break-even for its Switch successor, prompting a later release than we anticipated. Also: Embracer Group woes continue, Hasbro loses a ton. This is 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 order of Magic Mind at https://www.magicmind.com using the code VirtualEconomy20.  You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:01:12] - Sony Earnings for Q3 FY24 [00:18:37] - Starbreeze Earnings for FY23 [00:26:13] - Embracer Group Earnings for Q3 FY24 [00:41:48] - Bandai Namco Earnings Notes for Q3 FY24 [00:43:48] - Hasbro Earnings Notes for FY23 [00:46:46] - Xbox Reveals Multiplatform Plans [00:49:10] - Epic Games Store Year in Review 2023 [00:52:22] - Investment Interlude [01:04:24] - Quick Hits [01:13:12] - Labor Report [01:22:11] - What Happens if the Switch 2 Doesn't Come Out in 2024? [01:36:13] - Listener Questions SOURCES Sony Earnings for Q3 FY24 | Sony Starbreeze Year-End Report | Starbreeze EMBRACER GROUP PUBLISHES INTERIM REPORT Q3 | Embracer Group Financial Highlights for the Third Quarter of the Fiscal Year Ending March 31, 2024 | Bandai Namco From Software now owns the Elden Ring IP | USPTO Magic, D&D maker Hasbro lost over $1bn in Q4, predicts WotC revenue decline in 2024 | BoardGameWire Xbox's Promise to Bring More Games to More Players Around the World | Xbox Wire Xbox's Alleged Multiplatform Plans are Making People Angry Prematurely | Virtual Economy Epic Games Store 2023 Year in Review | Epic Games Epic Games Store is Coming to iOS | Epic Games (@EpicNewsroom) on Twitter Genvid Suffers Layoffs | Seana Cavanagh on LinkedIn Daybreak confirms "less than 15" layoffs | GamesIndustry Scopely layoffs hit Kingdom Maker team | Games Industry Disco Elysium studio laying off nearly 25% of its staff⁠—including the final remaining writer from the original game's credits | PCGamer Everywhere and Mindseye developer Build a Rocket Boy announces layoffs | PCGamesN Global layoffs at Gameloft as staff in Ukraine and Canada confirm redundancies | Pocket Gamer Embracer-owned studio Flying Wild Hog has unionized | Game Developer Things at Toys for Bob may not be so dire | @MauroNL on Twitter Sources: Nintendo Switch 2 will now launch in 2025 | VGC INVESTMENT INTERLUDE Games corporate and VC funding falls 75% to $2.7B in 202 | GamesBeat Monumental to acquire Game Circus | GamesIndustry Former EA and King leaders establish new studio Cult of the North | Game Developer

Microsoft's layoffs have sent the FTC into a tizzy, adding fuel to the ongoing fire. Also: It's earnings season, with EA, Microsoft, Capcom, Nintendo, Square Enix, Paradox, Take-Two, Sega, and Meta reporting. We also cover the latest in the layoff storm that continues to drown the industry and Disney's $1.5B investment in Epic. This is 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 order of Magic Mind at https://www.magicmind.com using the code VirtualEconomy20.  You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:01:14] - EA Earnings [00:12:44] - Microsoft Earnings [00:22:59] - Capcom Earnings [00:28:23] - Nintendo Earnings [00:31:09] - Square Enix Earnings [00:37:45] - Paradox Earnings [00:42:38] - Take-Two Earnings [00:49:17] - SegaSammy Earnings [00:53:09] - Meta Earnings (Brief) [00:55:57] - Investment Interlude [01:12:13] - Quick Hits [01:19:36] - Labor Report SOURCES Electronic Arts Reports Strong Q3 FY24 Results | EA Microsoft Earnings Release FY24 Q2 | Microsoft Capcom On Track to Achieve Full-Year Guidance | Capcom Consolidated Results for the Nine Months Ended December 31, 2022 and 2023 | Nintendo Consolidated Financial Results for the Nine-Month Period Ended December 31, 2023 | Square Enix Year-end report January – December 2023 | Paradox Take-Two Interactive Software, Inc. Reports Results for Fiscal Third Quarter 2024 | Take-Two SegaSammy Q3 Results Presentation | SegaSammy Meta Reality Labs loses $4.65B in Q4 | Meta Tencent CEO feels its game business "achieved nothing" during 2023 | Game Developer Embracer lays off staff at Star Trek: Infinite dev Nimble Giant | Game Developer Wayfinder dev Airship Syndicate lays off 12 employees | Game Developer Square Enix absorbs Tokyo RPG Factory | Gematsu Hidden Path Layoffs | Jeff Pobst on LinkedIn Roughly half of Devolver's Artificer studio laid off | Games Industry Devolver Digital CEO Douglas Morin steps down | Games Industry Layoffs at Netease, MiHoYo, Tencent | Core Esports The FTC is Going After Microsoft Over Layoffs | Tom Warren (@tomwarren) on Twitter …And Microsoft has Responded | Tom Warren (@tomwarren) on Twitter INVESTMENT INTERLUDE Nordcurrent snaps up Cinemaware library | Games Industry Disney and Epic Games to Create Expansive and Open Games and Entertainment Universe Connected to Fortnite | Disney Nitro Games receives further €3.5 million to continue Warframe mobile development | Pocket Gamer Six Nations-backer CVC in talks to buy Runescape-maker for £900m | Sky News FromSoftware owner Kadokawa acquires Octopath Traveler studio | Eurogamer

In the wake of 2020's bombshell revelations about Activision's miserable culture and history of defending sexual abusers, we hoped that Microsoft would be a better steward for the company's 13,000 employees. With 1,900 laid off post-acquisition, we are disappointed and saddened at how wrong we were. This is 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 order of Magic Mind at https://www.magicmind.com/JANvirtualeconomy using the code VirtualEconomy20.  You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:01:09] - A word about Microsoft and Activision [00:07:07] - Apple kinda-but-not-really complies with European Commission rulings [00:19:03] - The Pokemon Company dragon is stirring, Palworld… [00:24:10] - Investment Interlude [00:30:32] - Quick Hits [00:33:48] - Labor Report [00:54:48] - Twitch Updates Payment Terms for Streamers SOURCES Apple opens App Store to game streaming services | The Verge Apple is bringing sideloading and alternate app stores to the iPhone | The Verge When Apple takes the European Commission for fools… | The Platform Law Blog An Update to Several Streamer Payout Programs | Twitch Inquiries Regarding Other Companies' Games | The Pokemon Company Microsoft lays off 1,900 Activision Blizzard and Xbox employees | The Verge INTRODUCING JOHANNA FARIES AS THE NEW PRESIDENT OF BLIZZARD ENTERTAINMENT | Blizzard 2K Games makes layoffs at internal studio 31st Union | Game Developer Netmarble liquidates Grand Cross: Metaworld studio Metaverse World | Game Developer Report: Black Forest Games cuts 50% of staff | PC Games Insider Embracer Group Cancels ‘Deus Ex' Video Game | Bloomberg (Paywall) Outriders developer People Can Fly reportedly lays off "over 30" employees | Eurogamer UK recruitment firm OPM closes after 26 years | GamesIndustry How Goliath bought Prospero Hall's game assets, but left its heart behind | BoardGameWire Ruiner studio Reikon Games has reportedly laid off around 80% off its staff | VGC PUBG owner Krafton sued in sexual assault, wrongful termination case | Polygon INVESTMENT INTERLUDE Build A Rocket Boy lands $110 million in funding | GamesIndustry

It's been less than one month, and the industry has already suffered more than 3,500 lost jobs. Also: The Circana report for December 2023 and the full year, a few investments, and a discussion about some challenging changes to the U.S. tax code. Oh, and a bit about that weird Palworld game. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:11:08] - Circana report on U.S. Video Game Spending for December and Full Year 2023 [00:27:19] - Investment Interlude [00:34:06] - Quick Hits [01:00:58] - Labor Report SOURCES SAG-AFTRA and Replica Studios Introduce Groundbreaking AI Voice Agreement at CES | SAG-AFTRA Replica Studios Agreement for Digital Voice Replicas FAQs | SAG-AFTRA SAG-AFTRA's AI Voice Acting Deal Was A Powder Keg Waiting To Go Off | Aftermath AI Content on Steam | Valve Report: 3D Realms and Slipgate may have been hit with more layoffs | Game Developer Employees Say ‘Sizable Portion' Of Gearbox-Owned Studio Has Been Laid Off | Aftermath Playtika reduces staff by 10% | GamesIndustry Discord is laying off 17 percent of employees | The Verge Thunderful Group to restructure operations for strengthened long-term competitiveness | Thunderful Games A Difficult Update about our Workforce | Twitch Changes at Riot and the Road Ahead | Riot An Important Update about Riot's Future | Riot Wimo Games reportedly shuts down | GamesIndustry Astra Fund repositions as "thinky" publisher Astra Logical following layoffs | Game Developer Playtika reduces staff by 10% | GamesIndustry INVESTMENT INTERLUDE Phoenix Labs execs regroup to form Critical Path Games | Game Developer Second Dinner raises $100 million to continue growing Marvel Snap | Game Developer Tencent completes majority ownership of Dying Light dev Techland | Game Developer Outsourcing studio Obelisk nets $2 million to create original horror title | Game Developer Rocksteady founders have a new, post-Suicide Squad studio | Polygon

It's been a hard year, folks. As we say goodbye to 2023 and turn our attention to a (hopefully) brighter 2024, we're recapping recent gaming events, November's Circana report, and more. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:02:17] - Circana Report on U.S. Video Game Spending for November 2023 [00:09:11] - GameStop Earnings for Q3 2023 [00:13:28] - What's Going on in China? [00:19:37] - Twitch: Closing Up Shop in S. Korea, Sexual Content Policy [00:25:10] - Investment Interlude [00:25:59] - Quick Hits [00:27:26] - Labor Report [00:35:45] - Our Feelings on Coverage of the Insomniac Hack (Discussion) [00:45:59] - PAX Unplugged (Discussion) [00:54:47] - The Game Awards (Discussion) [01:02:42] - Our Favorite Games This Year [01:13:48] - Listener Questions SOURCES GameStop Discloses Third Quarter 2023 Results | GameStop Activision Blizzard to pay $47M in gender discrimination settlement | Axios Microsoft announces more Xbox leadership changes as Activision's Bobby Kotick departs | The Verge Updates on Twitch in Korea | Twitch Sexual Content Policy Update | Twitch Indie publisher Versus Evil has shut down | Game Developer Jukai Studio Has Shut Down | Jukai Studio (@jukaistudio) on Twitter Activision Blizzard to pay $47M in gender discrimination settlement | Axios Microsoft announces more Xbox leadership changes as Activision's Bobby Kotick departs | The Verge INVESTMENT INTERLUDE Keywords acquires The Multiplayer Group, enhancing its Create division | Keywords

Embracer Group gorged itself during the pandemic when debt was cheap. Now, it's scrambling to lay off hundreds of people to “win.” Also, Circana report for October, Epic wins against Google, and more. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:04:03] - Embracer Group Q2 Earnings [00:20:32] - Starbreeze Q3 Earnings [00:24:59] - Epic wins in court against Google [00:27:27] - Circana U.S. Video Game Spending Report for October 2023 [00:33:18] - Investment Interlude [00:45:08] - Quick Hits [01:11:01] - Labor Report SOURCES EMBRACER GROUP PUBLISHES INTERIM REPORT Q2 | Embracer Group Embracer: Human cost of restructure is "significant" but "necessary" | GamesIndustry Starbreeze Q3 FY24 Earnings Report | Starbreeze Epic win: Jury decides Google has illegal monopoly in app store fight | The Verge Humble Games lays off "valued colleagues" as restructuring begins | Game Developer Digital Bros Group announces an organizational review, with an expected workforce reduction of approximately 30% | Digital Bros Kongregate, Digital Bros. cut jobs in a growing wave of video game industry layoffs | Polygon Phoenix Labs lays off 34 staff | GamesIndustry Trading Update and Litigation Settlement | TinyBuild F1 Developer Codemasters Suffers Round of Layoffs | Insider Gaming Embracer lays off 50 more employees and may soon close resurrected TimeSplitters studio Free Radical Design | PC Gamer TimeSplitters studio Free Radical Design closed today, staff say | Eurogamer Insurgency developer New World Interactive affected by layoffs | GamesIndustry League of Geeks lays off 50% of its staff - but does so with compassion | League of Geeks (@leagueofgeeks) on Twitter Rovio closes Studio Lumi | GamesIndustry TripleTopping is Closing | Astrid Refstrup (@AstridMie) on Twitter CD Projekt voluntarily recognizes Polish developer union | Game Developer QA staff at Xbox support dev Experis successfully vote to unionize | Game Developer INVESTMENT INTERLUDE AONIC ACQUIRES NDREAMS FOR $110 MILLION | Ndreams Mobile publisher Nordcurrent acquires River End Games | Game Developer Call of Duty developer Infinity Ward opens new Texas studio | Game Developer Hearst Newspapers Acquires Puzzle Games Platform Puzzmo | Hearst ByteDance says to restructure Nuverse in retreat from gaming business | Reuters ReedPop seeks buyer for Eurogamer, GI, VG247, Rock Paper Shotgun and more | GamesIndustry

We're in the thick of earnings season, and it's hard to swallow positive financial news amid an avalanche of heartbreak labor stories. On this week's show: Sony EA, Nintendo, Take-Two, Remedy, Sega, and Square Enix earnings. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:02:35] - Sony Earnings for Q2 FY2023 [00:08:50] - EA Earnings for Q2 FY2024 [00:17:00] - Nintendo Earnings for Q2 FY2024 [00:27:08] - Take-Two Earnings for Q2 FY2024 [00:29:00] - Remedy Earnings for Q3 FY2023 [00:31:02] - Sega Earnings for Q2 FY2024 [00:34:32] - Square Enix Earnings for Q2 FY2024 [00:39:25] - Remedy Update on Project Vanguard [00:42:57] - Investment Interlude [00:56:14] - Quick Hits [00:59:21] - Labor Report [01:14:05] - Listener Questions SOURCES Q2 FY2023 Consolidated Financial Results | Sony Electronic Arts Reports Strong Q2 FY24 | EA Consolidated Results for the Six Months Ended September 30, 2023 | Nintendo IR Presentation for Fiscal Year Ending March 2024 | Nintendo Take-Two Q2 FY24 Earnings | Take-Two REMEDY ENTERTAINMENT PLC: Q3 2023 | Remedy Remedy Entertainment plans to reboot codename Vanguard to a premium game with a strong cooperative multiplayer component | Remedy Q2 for the Fiscal Year Ending March 2024 | Sega Results Briefing Session for the Six-Month Period Ended September 30, 2023 | Square Enix Sony's Bungie Game Unit Cut 8% of Staff After ‘Destiny' Play Wilted | Bloomberg (Paywall) Embracer's implosion continues as Star Trek Online developer Cryptic Studios lays off employees | PC Gamer Motorsport Games to lay off up to 38 employees | GamesIndustry 100 Thieves to cut 20% of its workforce | GamesIndustry The layoffs continue: Ubisoft cuts 124 jobs worldwide, including nearly 100 in Canada | PC Gamer Worker co-op dev The Glory Society has shut down | Game Developer Unity is probably going to do layoffs | The Verge Wayfinder, Warframe publisher Digital Extremes cuts workers, divests from Wayfinder | Polygon Samurai Punk is ceasing development | Twitter Samurai Punk staff | Twitter Amazon Lays Off 180 Employees In Its Games Division | Aftermath INVESTMENT INTERLUDE Global Gaming Report Q3 2023 | Drake Star Atari enters into an agreement to acquire Digital Eclipse | Atari System Era Acquired by Devolver | System Era Midwest Games secures $3m in funding | GamesIndustry Neowiz invests in Blank Game Studios | GamesIndustry

With Microsoft's Activision acquisition closed, the Xbox leadership team has reorganized in some unexpected ways. Also: Microsoft and Capcom earnings, more layoffs, Paradox says goodbye to Harebrained Schemes, Unity boots John Riccitiello, and we have the latest Circana report on U.S. Game spending. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:02:49] - Circana report on U.S. Video Game Spending for September 2023 [00:17:47] - Unity gives John Riccitiello the boot [00:24:16] - Microsoft Q1 FY24 Earnings [00:36:51] - Capcom Q2 FY24 Earnings [00:42:31] - Investment Interlude [00:52:41] - Quick Hits [01:03:44] - Labor Report [01:12:25] - Let's Talk about the GaaSacre  [01:20:08] - Listener Questions SOURCES Unity Announces Leadership Transition | Unity “Fuck you, we're not paying”: inside Unity's Runtime Fee fiasco | MobileGamer.biz Microsoft Q1 FY24 Earnings | Microsoft Consolidated financial results for the 2nd Quarter of FY2023 | Capcom Paradox says The Lamplighters League sales were 'a big disappointment,' confirms recent layoffs at developer Harebrained Schemes | PC Gamer Zen Studios reportedly cuts staff by 32 | GamesIndustry Embracer-owned Digic to lay off 35 employees | GamesIndustry Frontier to lay off unknown number of staff in organisational review | GamesInudstry Full extent of Team17 cuts threaten third of the company - sources | Eurogamer Virtuos Studios seemingly closes Calypte one year after opening | Game Developer Epic Games cuts almost half of Bandcamp pre-Songtradr sale | Game Developer PlayStation lays off staff at Visual Arts support dev | Game Developer INVESTMENT INTERLUDE GameSquare To Acquire One of the Biggest Names in Gaming, FaZe Clan | GameSquare Xsolla Announces Acquisition Of Lightstream, Rainmaker And Api.Stream | Xsolla Fragbite to acquire Fall Damage | GamesIndustry Space Rock Games secures $900,000 in funding | GamesIndustry

The industry's labor situation is reaching a boiling point, as Epic Games sacrifices employees on the altar of its fight against Apple and Google. Also: Unity has burnt its goodwill to the ground, voice actors prepare to strike, a leadership shake-up at PlayStation, and Microsoft's purchase of Activision Blizzard now seems like a sure thing. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:00:31] - The State of the Industry  [00:09:05] - Unity Update - An Attempt to Save Face [00:28:57] - Bye bye, Jim Ryan [00:30:03] - Epic Implements IARC Ratings for Fortnite Creative & more Parental Controls [00:35:59] - Investment Interlude [00:41:50] - Quick Hits [00:50:18] - Labor Report [01:18:27] - Listener Questions SOURCES Introducing IARC Ratings in Fortnite, Paving the Way for a Multi-Game Ecosystem | Epic Games Epic Games Safety and Security Center | Epic Games Crystal Dynamics (Embracer) Layoffs | Crystal Dynamics (@crystaldynamics) on Twitter Embracer open to divesting studios, confirms more closures on the horizon | Game Developer Roblox cuts 30 on talent acquisition team as hiring slows | TechCrunch Blizzard lays off several Hearthstone developers after restructuring team | Game Developer Hyenas Cancelation and Layoffs at Creative Assembly | Creative Assembly (@CAGames) on Twitter Significant job losses likely at Worms publisher Team17 - sources | Eurogamer Last Of Us Studio Naughty Dog Is Cutting Developers | Kotaku Boomerang X Developer Dang is Shutting Down | Dang (@dangmakesgames) on Twitter CLOSING PUNY HUMAN | Puny Human Layoffs at Epic | Epic Games Five former Ubisoft executives arrested after sexual harassment investigation | GamesIndustry (via Libération) Terminated BioWare Employees Sue for Better Severance | Jon Renish (@jonrenish) on Twitter SAG-AFTRA Members Approve Video Game Strike Authorization Vote With 98.32% Yes Vote | SAG-AFTRA Nickelodeon game developer Workinman unanimously votes to unionize | Game Developer Over 100 Developers of Just Cause, Contraband at Avalanche Studios Have Unionized | IGN CD Projekt Red devs unionise after its third round of layoffs in three months | Eurogamer INVESTMENT INTERLUDE VIRTUOS LAUNCHES GAME DEVELOPMENT STUDIO IN TOKYO | Virtuos Supercell acquires majority stake in Ultimate Studio | GamesIndustry XSOLLA ACQUIRES ACCELERATXR | XSOLLA New Microsoft/Activision deal addresses previous CMA concerns in cloud gaming | UK CMA

At PAX West, we spoke with Serenity Forge founder and CEO Z about the risks, challenges, and opportunities in the indie publishing world. With brutal macroeconomic headwinds and massive consolidation, the pressure is on for small publishers. Find out how Serenity Forge is weathering the storm.

Unity couldn't have made a bigger mess of its reputation in the game development community. Also: Microsoft's big leak, GameStop earnings, Circana report for August, SAG-AFTRA fires a shot at video game publishers, and more. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:02:45] - PAX West [00:25:15] - GameStop Earnings [00:27:50] - Unity's Foolish Moves [00:51:32] - Investment Interlude [01:18:59] - Quick Hits [01:25:50] - Labor Report [01:40:44] - Circana Report on U.S. Consumer Video Game Spending for August 2023 [01:44:43] - Listener Questions [01:49:11] - FAFO SOURCES GameStop Discloses Second Quarter 2023 Results | GameStop CHANGES TO UNITY PLANS AND PRICING (September 12, 2023) | Unity Volition Announces its Closure | Volition (@DSVolition) on Twitter Report: Embracer layoffs impact staff at MX vs ATV developer Rainbow Studios | Game Developer Imagendary Studios reportedly lays off majority of staff | GamesIndustry Gloria Victis Final Season | Gloria Victis on Steam Lego 2K Drive developer Visual Concepts hit with layoffs | Game Developer Immortals of Aveum studio lays off nearly half of staff weeks after release | Polygon Ascendant Studios CEO Confirms Layoffs | Bret Robbins (@BretRobbins) on Twitter Ubisoft is shutting down its London studio | Game Developer Ubisoft Montreal in Turmoil Amid What Developers are Calling Broken Promises | IGN SAG-AFTRA National Board Votes Unanimously to Send Interactive Media (Video Game) Strike Authorization Vote to Members | SAG-AFTRA INVESTMENT INTERLUDE Sumo Group acquires mobile game dev studio Midoki | Sumo Group SOEDESCO® acquires development studio: Kyodai | Soedesco Atari acquires AtariAge | GamesIndustry Playtika Holding Corp. Enters Definitive Agreement to Acquire Innplay Labs | Playtika FaZe Clan is flaming out on Nasdaq as Chairman resigns | GamesBeat Humble Games interested in studio acquisitions and first-party development | Game Developer Carlyle weighs options for 'RuneScape' creator Jagex, sources say | Reuters

The Microsoft/Activision deal is still alive. And now, Ubisoft has been folded into the conversation with control of cloud streaming rights. Also: Earnings (Square Enix, Sony, Take-Two, Embracer Group), The July 2023 Circana Report on U.S. Video Game Spending, Xbox's new moderation system, and a listener question about the Xtra Small Small. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise!   TIME STAMPS  [00:01:36] - Square Enix Q1 FY24 Earnings [00:07:16] - Take-Two Q1 FY24 Earnings [00:14:51] - Sony Q1 FY24 Earnings [00:18:24] - Embracer Group Q1 FY24 Earnings [00:26:23] - Investment Interlude [00:41:24] - Quick Hits [00:46:17] - Labor Report [00:50:59] - Circana Report on U.S. Video Game Spending for July 2023 [00:54:19] - Xbox's New Moderation System [00:56:46] - Listener Question   SOURCES Square Enix Q1 FY24 Earnings | Square Enix Sony Q1 FY24 Earnings | Sony Take-Two Q1 FY24 Earnings | Take-Two Embracer Group Q1 FY24 Earnings | Embracer Group Scoop: Saudi-funded Savvy Games was the mystery partner in collapsed $2B Embracer deal | Axios Embracer is Moving to Shutter Campfire Cabal | Campfire Cabal on LinkedIn Xbox Introduces Enforcement Strike System | Xbox Wire Xbox 360 Store and Xbox 360 Marketplace FAQ | Xbox Support An Update on the State of BioWare | BioWare   INVESTMENT INTERLUDE Telltale Acquires Flavourworks | Telltale Behaviour Interactive Acquires Award-Winning Codeglue | GamesPress Roleplay Community Update | Rockstar Games VIRTUOS EXPANDS GAME ENGINEERING CAPABILITIES WITH LAUNCH OF VIRTUOS LABS – PRAGUE | Virtuous Krafton commits $150 million to India following BGMI trial approval | TechCrunch Play Ventures raised at least $78M for third gaming venture fund | GamesBeat Microsoft and Activision Blizzard restructure proposed acquisition and notify restructured transaction to the UK's Competition and Markets Authority | Microsoft Microsoft submits new deal for review after CMA confirms original deal is blocked | UK CMA Activision Blizzard Games Coming To Ubisoft+ | Ubisoft Microsoft's Activision Blizzard merger approved in New Zealand | Game Developer  

The Entertainment Software Ratings Board wants to use facial scanning to keep your kids from playing GTA and other adult-focused games. Also, it's earnings season, with Microsoft, Capcom, Sega, and EA kicking us off. We also cover two more instances of the dreaded “payoffs for layoffs,” and a heap of listener questions! You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:1:55] - Circana Report on U.S. Video Game Spending for June 2023 [00:13:20] - Microsoft Q4 FY23 Earnings [00:19:43] - Capcom Q1 FY24 Earnings [00:23:40] - Sega Q1 FY24 Earnings [00:29:51] - EA Q1 FY24 Earnings [00:31:28] - Nintendo Q1 FY24 Earnings [00:35:55] - Investment Interlude [00:45:39] - Quick Hits [00:56:30] - Labor Report [01:02:41] - The ESRB Wants to Use Facial Scanning for Age Gating [01:13:20] - Listener Questions SOURCES Microsoft Earnings Release FY23 Q4 | Microsoft Capcom Q1 FY24 Earnings | Capcom Capcom Makes Swordcanes Studio Co., Ltd. a Wholly-Owned Subsidiary Through Share Acquisition | Capcom Sega Q1 FY24 Earnings | Sega Electronic Arts Reports Strong Q1 FY24 Results | EA Nintendo Q1 FY24 Earnings | Nintendo Financial Results Explanatory Material | Nintendo Take Two Interactive execs' pay doubled this year | Axios Discord Lays Off 4% of Workforce | The Information 15 USC 6501: Definitions (house.gov) What Do We Do About the Biases in AI? (hbr.org) | Harvard Business Review If consoles can't crack China, their future is limited | GamesIndustry.biz  INVESTMENT INTERLUDE TECHLAND'S NEXT CHAPTER AND THE ROAD AHEAD | Techland MICROSOFT'S SUBMISSIONS ON MATERIAL CHANGES OF CIRCUMSTANCES | UK CMA

The FTC is down for the count after losing in court and seeing an emergency injunction denied. We discuss where things go from here as the UK CMA stands alone. Also, a bunch of new studios were announced, Bungie wins a big victory against a toxic troll, and Xbox works to make it harder for harassers online. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:02:52] - Pathfinder Open Gaming License [00:09:39] - New Xbox Voice Reporting Feature [00:13:14] - Xbox Live is Dead, Here Comes Game Pass Core [00:19:14] - Investment Interlude [00:32:21] - Activision Blizzard FTC  [00:45:54] - Quick Hits [00:48:19] - Labor Report [00:57:12] - FAFO x2 [01:06:59] - Listener Questions SOURCES The creators of Pathfinder have released their own version of D&D's controversial OGL—and it could have a huge impact on all tabletop RPGs | PC Gamer paizo.com - Community | Paizo Blog Xbox Launches New Voice Reporting Feature | Xbox Wire Introducing Xbox Game Pass Core, Coming This September | Xbox Wire Sega of America workers win union vote | Polygon Pokémon Go creator Niantic accused of ‘systemic sexual bias' in lawsuit | The Verge Splash Damage transitions to 4-day work weeks | Game Developer Yuji Naka gets a $1.2 million fine and a suspended prison sentence for insider trading | VGC Justice served: Destiny 2 harasser forced to pay Bungie nearly $500,000 in damages | Windows Central Bungie, Inc v Jesse James Comer - Default Judgment and Order | Superior Court of the State of Washington INVESTMENT INTERLUDE CORSAIR TO ACQUIRE DROP ASSETS; FURTHER EXPAND PERIPHERALS BUSINESS | Corsair Cloud Imperium Group Acquires Turbulent | CIG Lightspeed Studios acquires Destruction AllStars dev Lucid Games | Game Developer Tencent invests in new triple-A studio from Playground Games co-founder | Eurogamer Meet Cliffhanger Games | EA Canada's Behaviour Interactive opens new UK studio | Behaviour People Can Fly Opens a Montreal Location | People Can Fly on LinkedIn Q-Games alumni form Denkiworks | GamesIndustry Microsoft wins FTC fight to buy Activision Blizzard | The Verge Preliminary Injunction Opinion | United States District Court, Northern District of California FTC is appealing ruling that cleared Microsoft to buy Activision Blizzard | The Verge Court denies FTC's last-ditch attempt to stop Microsoft buying Activision Blizzard | The Verge Microsoft to modify Activision Blizzard acquisition to address CMA concerns | GamesIndustry The Trade Desk, Inc. to Join the Nasdaq-100 Index Beginning July 17th, 2023 | NASDAQ Microsoft's Activision Blizzard merger approved in South Africa | Game Developer

This week saw the long-awaited showdown between the FTC and Microsoft, as the U.S. Government seeks an injunction to prevent the Activision acquisition. Also; new studios opening amidst an otherwise grim labor report, the latest Circana U.S. spending report, and more. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:01:17] - Circana U.S. Video Game Spending Report for May 2023 [00:19:41] - Twitch Partner Plus [00:27:05] - Investment Interlude (With a Big Conversation about the Microsoft/Activision FTC Hearing) [00:57:42] - Quick Hits [01:03:12] - Labor Report SOURCES Introducing the Partner Plus Program | Twitch How many Twitch partners are actually eligible for Partner Plus? | Streams Charts IATSE Launches Gameworkers.org, First-Ever Video Game Industry Study | IATSE EMBRACER GROUP ANNOUNCES COMPREHENSIVE RESTRUCTURING PROGRAM | Embracer Group Danish studio Kiloo Games lays off staff before July closure | Game Developer Season developer Scavengers Studio hit with "massive layoffs" | Game Developer Hi-Rez Studios lays off employees in company restructuring | Game Developer Niantic Organizational Update | Niantic Daedalic Entertainment closes development department | Games Wirtschaft INVESTMENT INTERLUDE Focus Entertainment taps Ubisoft veterans to establish Carpool Studio | Game Developer PCF GROUP SA (22/2023) Conclusion of a production and publishing agreement with Microsoft Corporation - report 22/2023 | Interia Biznes Krafton opens new studio, ReLu Games, to develop deep learning titles | Game Developer Scopely acquires Scottish mobile developer Tag Games | Game Developer Order re: Temporary Restraining Order and Preliminary Injunction | FTC Sony says it wouldn't share PS6 details with Microsoft-owned Activision | Eurogamer Microsoft considered acquiring Bungie and Sega to bolster Xbox Game Pass, internal emails show | The Verge Sega is not open to acquisitions, following speculation around Microsoft bid | GamesIndustry Canada regulator says Microsoft-Activision deal "likely" to harm competition | GamesIndustry UK court blocks request to delay CMA and Microsoft trial | GamesIndustry

On the eve of its earnings announcement, Embracer Group saw a nearly-signed $2B deal fall apart. We discuss the potential impact. Also: GameStop back in crisis, a huge number of layoffs, and the strange tale of Disco Elysium continues. Note: We discuss Cyberpunk 2077 and the Phantom Liberty DLC during this episode. While we were confused that Phantom Liberty was a no-show during Geoff Keighley's Summer Game Fest presentation, the game did make an appearance during the Xbox event. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:02:11] - Embracer Group Earnings for FY23 [00:10:02] - Sony Business Segment Meeting - New Data [00:21:25] - GameStop Earnings for Q1 2023 [00:29:11] - Investment Interlude [00:38:38] - Quick Hits [00:57:28] - Labor Report [01:19:48] - Microsoft Hit with $20M COPPA Violation Fine  [01:23:51] - Apple's Vision Pro and the $3,500 Price Tag SOURCES Embracer Group Interim Report - Q4 and FY23 | Embracer Group Sony Business Segment Meeting 2023 Game & Network Services Segment | Sony CD Projekt Q1 2023 Earnings | CD Projekt GameStop Discloses First Quarter 2023 Results | GameStop Rising Storm studio Antimatter Games is being closed | PC Gamer Stranger Things 3 game developer BonusXP to close down | Game Developer Kirby support developer Vanpool has shut down | Game Developer Relic Layoffs | Relic Entertainment (@relicgames) on Twitter Life is Strange dev Deck Nine Games hit with staff layoffs | Game Developer Firaxis is latest video game studio hit by layoffs | Axios CD Projekt Red to Lay Off Around 30 Employees as Gwent Development Winds Down | IGN Redundancies hit Marvel Contest of Champions publisher Kabam | GamesIndustry Meta is laying off employees for the third time in less than three months | Engadget EA reportedly lays off two thirds of Firemonkeys Studio | GamesIndustry Star Wars: The Old Republic Going Third-Party as BioWare Focuses on Mass Effect and Dragon Age Bandcamp has successfully unionized at Epic Games | Game Developer Many teams, one Goodbye. Thank you for playing Blaseball. | The Game Band Investigation: Who's Telling the Truth about Disco Elysium? | People Make Games FTC Will Require Microsoft to Pay $20 million | FTC Xbox FTC Settlement and Reimagining the Future of Safety on Xbox | Microsoft INVESTMENT INTERLUDE NetEase Games Introduces Bad Brain Game Studios, a New Studio Based in Canada | PR Newswire God of War Art Director Raf Grassetti forms new studio for Netflix | Raf Grassetti (@rafagrassetti) on Twitter Shareholders call for a sale of EG7 | GamesIndustry

One day we'll be free of the Microsoft/Activision deal, but that day is NOT today. Also: Nintendo, EA, Starbreeze, Square Enix, Capcom, and Take-Two Earnings, acquisitions, the Circana US Video Game Spending report for April 2023, more layoffs, and a Double FAFO. Support Miranda Due, former Unity employee, who is looking for work. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:00:48] - Nintendo Earnings FY23 [00:08:06] - EA Earnings Q4 and FY23 [00:16:47] - Starbreeze Q1 FY23 Earnings [00:21:39] - Square Enix FY23 Earnings [00:25:09] - Capcom FY23 Earnings [00:29:19] - Take-Two FY23 Earnings [00:43:08] - Investment Interlude [00:51:17] - Quick Hits [00:57:24] - Labor Report [01:04:56] - Circana Report on US Video Game Spending for April 2023 [01:09:03] - Double FAFO SOURCES Nintendo Full Year FY23 Earnings | Nintendo EA Q4 and Full Year FY23 Earnings | EA Starbreeze Q1 FY23 Earnings | Starbreeze Square Enix FY23 Earnings | Square Enix Capcom FY23 Earnings | Capcom Take-Two FY23 Earnings | Take-Two CD Projekt makes layoffs after rescoping its Witcher spin-off game | VGC Sony Studio PixelOpus, Best-Known for Concrete Genie, Is Shutting Down | IGN PlayStation-backed Deviation Games hit with layoffs | VGC Ubisoft Hit by More Layoffs in Customer Service and Elsewhere | IGN Report: Brace Yourself Games lays off half its staff | Game Developer Riot's $100 million gender discrimination settlement granted final approval | Game Developer Unity employee fired for sharing comments from executive suggesting employees rent in downtown SF to make RTO easier | Miranda Due (@MirandaDue) on Twitter Destiny 2 cheat maker refuses to show up for court and now owes Bungie $6.7 million | PCGamer INVESTMENT INTERLUDE ANTICIPATED ACQUISITION BY MICROSOFT CORPORATION OF ACTIVISION BLIZZARD, INC. | UK Competition and Markets Authority Mergers: Commission clears acquisition of Activision Blizzard by Microsoft, subject to conditions | European Commission UK CMA Responds to EU Approval of Microsoft's Acquisition of Activision Blizzard | UK Competition and Markets Authority (@CMAgovUK) on Twitter Microsoft President Brad Smith on EU Decision | Brad Smith (@bradsmi) on Twitter Certain Affinity Announces Grand Opening of New Toronto Facility | Certain Affinity KEYWORDS STUDIOS EXTENDS US PRESENCE AND ADDS FURTHER AAA EXPERTISE TO ITS CREATE SERVICE LINE THROUGH THE ACQUISITION OF HARDSUIT | Keywords Studios Atari Closes the Acquisition of Nightdive Studios | Atari

After years of stumbling in the mobile space, Sega decided to throw $775M at the problem with the acquisition of Rovio. Also: Lots of layoffs, some acquisitions, a bunch of earnings, and the March Circana report on U.S. video game spending. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:01:06] - Epic v Apple… The End [00:04:03] - Microsoft Earnings for Q3 FY23 [00:14:21] - Sony Earnings for FY23 [00:18:13] - Remedy Earnings for Q1 FY23 [00:21:02] - Paradox Earnings for Q1 FY23 [00:23:14] - Sega Earnings for FY23 [00:26:32] - Investment Interlude [00:42:23] - Quick Hits [00:55:35] - Labor Report [01:03:59] - Circana U.S. Video Game Spending report for March 2023 [01:15:57] - FAFO SOURCES UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT | Court Listener Microsoft - Earnings Release FY23 Q3 | Microsoft Sony - FY2022 Earnings Announcement | Sony REMEDY ENTERTAINMENT PLC'S BUSINESS REVIEW JANUARY-MARCH 2023 | Remedy Paradox Interim report January – March 2023 | Paradox Sega Consolidated Financial Results for the Year Ending March 31 | Sega SEGA to Acquire Rovio Entertainment Oyj | Business Newswire Paradox closing Umea and Malmo studios to veer away from decentralized development | Game Developer Amazon Lays Off About 100 Employees in Its Gaming Divisions | Bloomberg (Paywall) InnoGames lays off 75 staff | GamesIndustry Ready at Dawn and Downpour Interactive impacted by Meta layoffs | Game Developer Sega of America is the latest video game studio to organize | The Verge Sega of America president reacts to unionization | Stephen Totilo (@stephentotilo) on Twitter Phoenix Labs cuts staff | GamesIndustry Documents in Activision Blizzard, Case No. 31-CA-316279 | NLRB INVESTMENT INTERLUDE Devolver Purchased Doinksoft | Devolver Digital (@devolverdigital) on Twitter Savvy Games Group To Acquire Leading Games Company Scopely | Savvy Games Focus Entertainment acquires the acclaimed UK-based Dovetail Games Group | Dovetail Games Sony is Fueling the Gamer Lawsuit Against the Microsoft / Activision Acquisition | Stephen Totilo (@stephentotilo) on Twitter Welcoming Firewalk Studios to the PlayStation Studios family | PlayStation Blog AQUIRIS is Joining Epic and Becoming Epic Games Brasil | Epic Games Atari Announces Acquisition of More than 100 PC and Console Titles from the 80s and 90s | GlobeNewswire

It's a very special, very weird episode from sunny Dubrovnik, Croatia! We're thrilled to have the one, the only ANDY PAN join us for a discussion about the UK Competition and Markets Authority's decision to deny Microsoft's acquisition of Activision Blizzard on the basis of the cloud gaming business. You can read the full decision here: Microsoft / Activision deal prevented to protect innovation and choice in cloud gaming. For the full context, listen to our recent legal issues episode from GDC. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise!

At GDC 2023, we got the gang back together for another down-and-dirty legal issues conversation. We're grateful to Brandon Huffman, founder of Odin Law & Media, and Ryan Black, partner at DLA Piper, for joining us again this year.  On the docket for this year: The Rise and Fall of Web3 at GDC (Good riddance!) The state of mergers and acquisitions in the industry and beyond The growing need for unionization and the current labor initiatives across the industry The future of non-compete clauses in the United States The emerging challenges with AI technologies Looking toward the future of legal issues, including the fate of Section 230 (Safe Harbor) in the United States You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise!

The new ReedPop-run E3 died before it could live… or was it… MURDERED?! (Spoiler: It was murdered.) Also: GameStop leans on cost cutting to finally turn a modest profit, Microsoft is one step closer to closing its Activision deal, established studios expand, while layoffs also run rampant. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:01:54] - E3 is DED! (Again!) [00:17:46] - Circana US Video Game Spending Report for February [00:25:14] - GameStop FY 2023 Earnings [00:29:43] - Investment Interlude [00:41:51] - Quick Hits [00:53:02] - Labor Report SOURCES GameStop Reports Fourth Quarter and Fiscal Year 2022 Results | GameStop Epic-Owned Bandcamp is Unionizing | Bandcamp United (@bandcampunited) on Twitter Twitch lays off hundreds amid Amazon cuts | Polygon 16 Years Of Twitch | Twitch Layoffs reported at Worms maker Team17 | Eurogamer Logitech Cuts 300 Jobs on Post-Covid Slump in Computer Gadgets | Bloomberg (Paywall) An update on our people and business | EA Disney Shuts Down Metaverse Unit as Part of First Wave of Layoffs | Variety INVESTMENT INTERLUDE UK regulator sides with Microsoft over Call of Duty on PlayStation concerns | The Verge Small band of gamers fail to block Microsoft Activision Blizzard bid | Eurogamer Ex-Blizzard leaders Jen Oneal and J. Allen Brack create startup studio Magic Soup Games | GamesBeat PCF GROUP (PEOPLE CAN FLY) WILL HAVE A NEW 10% SHAREHOLDER — KRAFTON INC., ONE OF SOUTH KOREA'S LARGEST GAME PUBLISHERS AND DEVELOPERS | People Can Fly Maximum Entertainment Completes the Acquisition of FUN Labs | Zordix Respawn opens third studio to keep Apex Legends going for '10 to 15 years' | GamesIndustry Total War makers open a third development studio | PC Gamer

Square Enix is having a time of it, as its Web3-loving CEO is leaving and Luminous Productions is no more. Also: Ubisoft and Activision messing up labor issues again, and the US is investigating extremism in online games. Also, Manda is going to talk to you about The Lord of the Rings, and Mike will do his best Gollum impression. Maybe. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:01:04] - Square Enix Needs to Sort Itself Out [00:05:41] - The US Government Wants to Know About Extremism in Online Games [00:09:21] - Epic Lays Out Its Plans for the Future of Epic Games Store [00:13:29] - Investment Interlude [00:17:04] - Quick Hits [00:33:06] - Labor Report [00:42:54] - FAFO! SOURCES An Update from Luminous Productions | Luminous Productions (@LumiPro_EN) on Twitter Reorganization within the SQUARE ENIX GROUP | Square Enix "FINAL FANTASY XVI" Trial Review & Interview! Overwhelming presence of the summoned beast felt in full-scale action! | PlayStation Blog JP Yuji Naka admits to insider trading | Square Enix Notification of Changes in the Representative Director of the Company and a Consolidated Subsidiary | Square Enix Exclusive: U.S. rep mulls legislative action to press games industry on extremism | Axios Epic Games Store Launches Self-Publishing Tools for Game Developers and Publishers | Epic Games Beyond Good And Evil 2 Studio Head No Longer At Ubisoft | Kotaku EA Lays Off Over 200 Apex Legends Testers Over Zoom Call | Kotaku Activision fired two testers for 'profane' language, now a major tech union is filing charges | PC Gamer Take-Two confirms layoffs following 'exponential growth in recent years' | PC Gamer Gameloft closes Budapest studio as it shifts focus to console and PC | GameDeveloper Lince Works is Shutting Down | Lince Works (@LinceWorks) on Twitter Destiny 2 cheat maker AimJunkies ordered to pay $4.4 million to Bungie | Game Developer Bungie seeks $6.7m default judgment in case against LaviCheats | GamesIndustry INVESTMENT INTERLUDE Canadian Gaming Leader Behaviour™ Interactive Acquires Award-Winning SockMonkey Studios | GamesPress EMBRACER GROUPS'S MIDDLE-EARTH ENTERPRISES AND NEW LINE CINEMA JOIN FORCES TO FURTHER EXPLORE THE CINEMATIC UNIVERSE OF “THE LORD OF THE RINGS” AND “THE HOBBIT” | Embracer Group

It's been a bloody couple of weeks for service-based games, and we suspect the murderer is still on the loose. Also: IT'S EARNINGS SEASON, BAYBEEE! We've got a meaty plate of all your favorite cold cuts: EA, Capcom, Sony, Nintendo, Square Enix, Take-Two, Capcom, Sega, Embracer Group, Starbreeze, and more. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:02:28] - Sony Q3 FY22 Earnings [00:06:22] - Nintendo Q3 FY23 Earnings [00:15:12] - Square Enix Q3 FY23 Earnings [00:17:14] - EA Q3 FY23 Earnings [00:26:18] - Take-Two Q3 FY23 Earnings [00:32:16] - Capcom Q3 FY23 Earnings [00:35:29] - Sega Q3 FY23 Earnings [00:36:17] - Embracer Group Q3 FY23 Earnings [00:40:29] - Starbreeze Q4 FY22 Earnings [00:44:04] - Investment Interlude [00:52:18] - Quick Hits [00:58:09] - Labor Report [01:03:38] - NPD Report on US Video Game Spending for January 2023 [01:10:42] - Mike remembers there's a listener question (oops!) SOURCES Sony FY2022 Q3 Earnings Announcement | Sony Nintendo Q3 FY23 Earnings | Nintendo Square Enix Q3 FY23 Earnings | Square Enix Electronic Arts Reports Q3 FY23 Financial Results | EA Take-Two Q3 FY23 Earnings | Take-Two Capcom Q3 FY23 Earnings | Capcom Sega Q3 FY23 Earnings | Sega Sammy EMBRACER GROUP PUBLISHES INTERIM REPORT Q3 OCTOBER-DECEMBER 2022 | Embracer Group Starbreeze Q4 FY2022 | Starbreeze NCsoft West lays off 20% of staff | GamesIndustry Tilting Point to cut 14% of its global staff | GamesIndustry Microsoft Studio Behind Halo Faces a Reboot on Years of Turmoil | Bloomberg Blizzard staffer alleges that Proletariat studio culture isn't progressive | GamesIndustry Activision Blizzard planning to end full remote work | Game Developer INVESTMENT INTERLUDE KEYWORDS STUDIOS' ENGAGE DIVISION POWERS UP ITS CREATIVE HOUSE OF BRANDS TO SERVE GLOBAL INTERACTIVE ENTERTAINMENT INDUSTRY | Keywords Zordix Reorganizes Maximum Entertainment | Maximum Entertainment (@maximumentmt) on Twitter Dauntless creator Phoenix Labs spins out of Sea/Garena | GamesBeat Notice of possible remedies | CMA

Wizards of the Coast squandered goodwill to find itself right back where it started. Also: Earnings season has begun, the GDC State of the Industry report shows developers put the smackdown on Web3, NPD for December shows a bit of lift, and (as we grimly expected) we're in the layoff bad times. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:01:17] - Learnings for the GDC State of the Industry Report [00:26:42] - Wizards of the Coast Fizzles OGL Update [00:30:05] - Microsoft Q2 FY23 Earnings [00:41:33] - Investment Interlude [00:45:38] - Quick Hits [00:52:36] - Labor Report [00:57:05] - NPD for December 2022 SOURCES Earnings Release FY23 Q2 | Microsoft Microsoft Corporation Form 8-K | United States SEC Xbox's Phil Spencer Says Microsoft's 10K Layoffs 'Hurts' In Email To Staff | Kotaku A Working Conversation About the Open Game License (OGL) | D&D Beyond OGL 1.0a & Creative Commons | D&D Beyond Unity lays off almost 300 staff | Eurogamer Riot Games to lay off nearly 50 staff as part of "strategic shifts" | Game Developer Hasbro lays off 15% of staff to cut costs | Eurogamer Ex-Sega developer highlights lack of credit for translators | Eurogamer Workers at World of Warcraft studio Proletariat withdraw union petition | Polygon INVESTMENT INTERLUDE Microsoft faces EU antitrust warning over Activision deal - sources | Reuters Playtika tries to buy Rovio | GamesIndustry SKYBOUND ENTERTAINMENT MAKES SUBSTANTIAL INVESTMENT IN MEGA CAT STUDIOS | Skybound

We're back for Season 4! Good thing we're not on HBO Max, amirite? The ghosts of Ubisoft's failure to care for its employees are now haunting its financial performance. Also: Let's talk about D&D and Hasbro's huge, shortsighted missteps with the OGL, Epic has been slapped with a fine over Fortnite, Zenimax QA workers unionize, while Activision Blizzard moves to make things hard for workers at recently acquired Proletariat. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:02:34] - Dungeons & Dragons Rolls a Critical Miss [00:23:13] - Ubisoft's No Good, Very Bad Day [00:34:48] - A Pair of Fortnite Stories [00:48:47] - Investment Interlude [01:05:02] - Quick Hits [01:19:40] - Labor Report SOURCES Dungeons & Dragons' New License Tightens Its Grip on Competition | Gizmodo Let's Take A Minute To Talk About D&D's Open Gaming License (OGL) | Noah Downs on Medium A Legal Perspective on the OGL | Chris Reid (@NYGameLawyer) on Twitter Paizo Announces System-Neutral Open RPG License | Paizo An Update on the Open Game License (OGL) Canceled D&D Beyond Subscriptions Forced Hasbro's Hand | Gizmodo UBISOFT STRENGTHENS STRATEGIC FOCUS… | Ubisoft Ubisoft Delays Skull And Bones, Cancels More Games, And Announces New Cuts | Kotaku Parents say game developer made ‘Fortnite' as ‘addictive as possible' | Washington Post Epic Games Fined by FTC in Children's ‘Fortnite' Privacy Case | Bloomberg Law Hasbro's Wizards of the Coast Cancels Video Game Projects | Bloomberg (Paywall)  Playtika to lay off over 600 staff; studios at risk, three games canned | Mobilegamer.biz Microsoft game makers unionize after vote passes by "supermajority" | Axios Proletariat Workers Become Third Group of Activision Blizzard Workers to Form Union with Communications Workers of America | Communications Workers of America EVERYONE DESERVES A VOTE | Proletariat INVESTMENT INTERLUDE MICROSOFT/ACTIVISION BLIZZARD PHASE 2 MERGER INQUIRY | UK Competition Markets Authority UK regulator extends deadline for investigation into Microsoft's Activision Blizzard deal | Game Developer Exclusive: Microsoft, Activision back off aggressive claim in FTC case | Axios Microsoft Sued by Gamers Over $69 Billion Activision Deal (2) | Bloomberg Law Google, Nvidia Express Concerns to FTC About Microsoft's Activision Deal | Bloomberg (Paywall) Yuga Labs Appoints Activision Blizzard President and COO Daniel Alegre as New CEO | Yuga Labs Jagex Acquires SCUM Developer Gamepires | Jagex NDREAMS ACQUIRES NEAR LIGHT | nDreams SkyBox Labs is joining NetEase Games | NetEase GEARBOX ENTERTAINMENT COMPANY ANNOUNCES ACQUISITION OF CAPTURED DIMENSIONS | Gearbox ATARI: OPENING OF THE FRIENDLY TENDER OFFER FOR ATARI SHARES | Atari MY.GAMES ANNOUNCES BUSINESS RESTRUCTURING AND DECISION TO CEASE OPERATIONS IN THE RUSSIAN MARKET | My.Games

 It's our season finale! GameStop has more than a little red on it, with losses continuing to mount on a crypto deal gone bust. Also: Microsoft makes nice with Nintendo (again) to pressure Sony, layoff continue to plague the industry, Zenimax QA workers on the path to unionization, and a fresh FAFO. Oh… and we have a tiny, little announcement. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! The views and opinions expressed on this podcast are ours and do not necessarily reflect the views or positions of our employer or the organizations with which we work. TIME STAMPS [00:00:30] - Some exciting news! [00:05:44] - Gamestop Q3 FY2023 Earnings [00:14:20] - NPD U.S. Video Game Spending Report for November 2022 [00:19:46] - Twitch's new Shield Mode [00:22:51] - Investment Interlude [00:49:36] - Quick Hits [00:54:19] - Labor Report [01:14:26] - Listener Question [01:16:01] - FAFO SOURCES GameStop Q3 FY2023 Earnings | GameStop GameStop begins layoff | Axios Protect Your Channel With Shield Mode | Twitch Activision Blizzard QA Workers Call for End to Bug Quotas | ABK Workers Alliance (@ABetterABK) on Twitter ‘Diablo IV' developers work long hours, bracing for impending release | Washington Post Activision sues California agency that sued it over misconduct | Axios Zenimax QA Workers Will Unionize | ZeniMax Workers United - CWA (@ZenimaxWorkers) on Twitter “Massive” layoffs at Wildlife as it drops all non-mobile game projects | Mobilegamer Just Cause Studio Employees Call for Change Amid Year-Long Battle Over Controversial Hire | IGN DEI at Avalanche Studios Group | Avalanche Studios Group Insider trading in FF development? Former Square Enix employees re-arrested | Asahi INVESTMENT INTERLUDE SONY INTERACTIVE ENTERTAINMENT OBSERVATIONS ON THE CMA'S ISSUES STATEMENT | UK Competition and Markets Authority MICROSOFT'S RESPONSE TO THE CMA'S ISSUES STATEMENT | UK Competition and Markets Authority FTC Seeks to Block Microsoft Corp.'s Acquisition of Activision Blizzard, Inc. | FTC Microsoft Didn't Lie to the EU on ZeniMax Deal Like the FTC Said, According to Sources A Letter from CEO Bobby Kotick Regarding Activision Blizzard's Merger with Microsoft | Activision Blizzard Keywords acquires AI-driven player support platform for $75m | GamesIndustry STARBREEZE STUDIOS EXPANDS WITH NEW STUDIO AND DEDICATED TEAM IN THE UNITED KINGDOM | Starbreeze SPLASH DAMAGE ANNOUNCES TRANSFORMERS: REACTIVATE | Splash Damage