Episode 66: How A Daytrader Reddit War Made GameStop the Biggest News of the Week (News Show)
Release Date: 01/23/2021
Virtual Economy
2025 has continued the trend of layoffs, consolidation, and privatization. The gulf between AAA and everyone else is widening, as the AI bubble strains before an inevitable burst. With November’s Circana report coming in bleak after months of stronger performance, 2026 will continue to challenge us all. BUT... there is reason to hope. Unions are growing in number and reach and studios doomed by AAA mega-corps are finding a way to survive. We need to stick together to not only survive, but thrive. You can support Virtual Economy’s growth via our and also purchase! TIME STAMPS ...
info_outlineVirtual Economy
Warner Bros. is selling itself like a $1.50 hot dog at Costco, and everyone wants a bite. Before the weekend, Netflix looked like it had a clear path to regulatory review. But now, New Paramount is taking a swing with a hostile takeover. Things are about to get ugly. Regardless of who wins, though, we lose. Consolidation continues and consumers pay the price. Also: Nintendo, Square Enix, Take-Two, Embracer Group, and Sony earnings; Circana’s report on U.S. video game spending for October 2025; and another grim labor report. You can support Virtual Economy’s growth via our and also...
info_outlineVirtual Economy
We’re joined by two special guests on this milestone episode. Please welcome Andy Pan (the only person who has previously co-hosted a show with us) and Greg Alderton, Virtual Economy’s lead moderator! With 14,000 people laid off, studios shuttered, and projects abandoned, Amazon seems ready to give up on most or all of its gaming dreams. Also: EA earnings ride off into the sunset, Capcom posts a strong quarter, Remedy’s in trouble, and Microsoft is inscrutable. Also: Sony responds to Tencent’s request to dismiss the Light of Moritram lawsuit, Circana report on U.S. video game spending...
info_outlineVirtual Economy
We’re joined by two special guests on this milestone episode. Please welcome Andy Pan (the only person who has previously co-hosted a show with us) and Greg Alderton, Virtual Economy’s lead moderator! With 14,000 people laid off, studios shuttered, and projects abandoned, Amazon seems ready to give up on most or all of its gaming dreams. Also: EA earnings ride off into the sunset, Capcom posts a strong quarter, Remedy’s in trouble, and Microsoft is inscrutable. Also: Sony responds to Tencent’s request to dismiss the Light of Moritram lawsuit, Circana report on U.S. video game spending...
info_outlineVirtual Economy
With prices skyrocketing this generation, Microsoft has increased costs on Game Pass’ top tier while cutting offerings on others. We discuss the broader implications as price-sensitive players get boxed out. Also: Unity security alert sends devs scrambling, Tencent fires back at Sony’s Horizon: Zero Dawn lawsuit, and private equity rears its head once more. You can support Virtual Economy’s growth via our and also purchase! TIME STAMPS [00:01:40] - Game Pass Price Hike Hits Hard [00:29:53] - Unity Security Flaw Alert [00:32:53] - Tencent Hits back at Sony’s Horizon: Zero Dawn...
info_outlineVirtual Economy
EA is going private in a $55 Billion deal. Saudi Arabia’s Public Investment Fund, Jared Kushner’s Affinity Partners, and Silver Lake will own the company after the deal closes in Q1 FY27. We discuss what that means, explained how leveraged buyouts work, and share our concerns for the future of EA’s workforce and identity. You can support Virtual Economy’s growth via our and also purchase!
info_outlineVirtual Economy
PAX West 2025 felt like home for the first time since the COVID-19 lockdown ended. We recap our favorite games and tech from the show. You can support Virtual Economy’s growth via our and also purchase!
info_outlineVirtual Economy
Following the flagging performance of Destiny 2 and Marathon woes, Sony has jettisoned embattled Bungie studio head Pete Parsons. They’ve also announced significant hikes on PS5 prices. Also: Another Subnautica 2 lawsuit, a BioShock shakeup, and Frost Giant studio head Tim Morten leads with transparency and accountability. You can support Virtual Economy’s growth via our and also purchase! TIME STAMPS [00:02:07] - PlayStation 5 Price Increases in the U.S. [00:05:25] - Unknown Worlds v Cleveland, McGuire, and Gill [00:14:33] - Circan Report on U.S. Video Game Spending for July 2025...
info_outlineVirtual Economy
Krafton’s response to the Unknown Worlds lawsuit hinges on one key element: the interpretation of the Equity Purchase Agreement. Also, lots of earnings, Roblox is under fire from the state of Louisiana, an update on the growing censorship of Steam and Itch.io, and more. You can support Virtual Economy’s growth via our and also purchase! TIME STAMPS [00:00:48] - Correction: Thunderful Share Price at Time of Atari Purchase [00:02:35] - Sony Q1 FY25 Earnings [00:05:24] - Paradox Q2 FY25 Earnings [00:07:26] - Take-Two Q1 FY26 Earnings [00:08:54] - Remedy Q2 FY25 Earnings [00:11:25] -...
info_outlineVirtual Economy
INT. POSH HOTEL SUITE - DAY TENCENT: Hey, Sony. Can we make a Horizon game? SONY: Nah. We good. TENCENT: Oh okay. Bummer. <ONE YEAR LATER> SONY: WHAT THE F—- <fin> So yeah… Sony is suing Tencent for what it calls a “slavish clone” of Horizon: Zero Dawn. Bold move! Also: EA, Microsoft, Capcom earnings, an update on the Mastercard/Visa censorship of legal game content, and more. You can support Virtual Economy’s growth via our and also purchase! TIME STAMPS [00:00:30] - Some News From Us! [00:05:21] - An Update on the Conservative Assault on Steam and ...
info_outlineGameStop stock jumped 80% as Redditors threw down with a short-seller analyst firm. We also discuss the Xbox Live price hike, Vicarious Visions’ new home at Blizzard, the EU fining Valve and five publishers, and more.
TIME STAMPS
- [00:01:37] - MGI purchases KingsIsle Entertainment
- [00:08:53] - Opera purchases YoYo Games
- [00:14:05] - Team17 acquires Blacklight Interactive
- [00:17:01] - Tencent makes significant investment in Klei
- [00:20:59] - Steam, five publishers fined by EU for geoblocking
- [00:31:14] - Quick Hits
- [00:45:55] - Listener Question from Pauleto G
- [01:00:16] - Resident Evil Showcase
- [01:13:33] - Vicarious Visions folded into Activision Blizzard
- [01:19:50] - CD Projekt facing a second investor lawsuit
- [01:23:15] - Microsoft faces backlash over (and swiftly retracts) Xbox Live price hike
- [01:35:54] - GameStop’s wacky week and short squeezin’
Sources:
- Media and Games Invest entered into an agreement to acquire U.S. game developer KingsIsle Entertainment Inc... : https://press.mgi.group/correction-of-a-release-from-16012021-0026-cetcest-media-and-games-invest-entered-into-an-agreement-to-acquire-kingsisle-entertainment-inc-for-usd-126m-plus-earn-outs-in-this-context-oaktree-is-subscribing-for-a-eur-25m-share-issue
- Opera opens new video game division and confirms YoYo Games purchase (Gamasutra): https://www.gamasutra.com/view/news/376454/Opera_opens_new_video_game_division_and_confirms_YoYo_Games_purchase.php
- Team 17 acquires Golf With Your Friends franchise for $16.4 million (Gamasutra): https://www.gamasutra.com/view/news/376492/Team_17_acquires_Golf_With_Your_Friends_franchise_for_164_million.php
- Studio Announcement (Klei): https://forums.kleientertainment.com/forums/topic/126355-studio-announcement/
- Antitrust: Commission fines Valve and five publishers of PC video games € 7.8 million for “geo-blocking” practices (European Commission): https://ec.europa.eu/commission/presscorner/detail/en/ip_21_170
- Coding Prodigy Behind Hit Game PUBG Eyes IPO Worth Billions (Bloomberg): https://www.bloomberg.com/amp/news/articles/2021-01-18/coding-prodigy-behind-hit-game-pubg-eyes-ipo-worth-billions
- GDC Showcase: https://gdconf.com/showcase
- LudoNarraCon: LudoNarraCon.com
- Capcom Announces Revision of Consolidated Full-Year Earnings Forecast…: https://www.capcom.co.jp/ir/english/news/html/e210121b.html
- Vicarious Visions merged into Blizzard (GamesIndustry): https://www.gamesindustry.biz/articles/2021-01-22-vicarious-visions-merged-into-blizzard
- CD Projekt faces a second class-action lawsuit over Cyberpunk 2077 (GamesIndustry): https://www.gamesindustry.biz/articles/2021-01-19-cd-projekt-faces-a-second-class-action-lawsuit-over-cyberpunk-2077
- Current report no. 4/2021 (CD Projekt): https://www.cdprojekt.com/en/investors/regulatory-announcements/current-report-no-4-2021/
- People Are Getting 'Cyberpunk 2077' Refunds and Getting to Keep The Game (Vice): https://www.vice.com/en/article/g5bmmx/people-are-getting-cyberpunk-2077-refunds-and-getting-to-keep-the-game