Episode 75: Activision is laying people off… in this economy. (News Show)
Release Date: 03/20/2021
Virtual Economy
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 and also purchase ! 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 INVESTMENT INTERLUDE
info_outline Episode 168: Switch 2 Switcharoo Could Thwart 2024 Recovery Hopes (News Show)Virtual Economy
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 using the code VirtualEconomy20. You can support Virtual Economy’s...
info_outline Episode 167: Did Microsoft Trigger the FTC’s Trap Card? (News Show)Virtual Economy
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 using the code VirtualEconomy20. You can...
info_outline Episode 166: We Were Wrong About Microsoft and Activision (News Show)Virtual Economy
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 using the code VirtualEconomy20. You can support Virtual Economy’s...
info_outline Episode 165: So… 2024, Huh? (News Show)Virtual Economy
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 and also purchase! 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 INVESTMENT...
info_outline Episode 164: The Game Awards Needs to Change (Season Finale)Virtual Economy
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 and also purchase! 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...
info_outline Episode 163: Embracer Group Claims Layoffs are How “We Will Win” (News Show)Virtual Economy
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 and also purchase! 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 ...
info_outline Episode 162: The Stark Contrast Between Positive Earnings and Gruesome Layoffs (News Show)Virtual Economy
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 and also purchase! 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...
info_outline Episode 161: Phil Spencer is Bobby Kotick’s Daddy Now (News Show)Virtual Economy
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 and also purchase! 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...
info_outline Episode 160: A Bad Year for Game Creators is a Bad Year for Games (News Show)Virtual Economy
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 and also purchase ! 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...
info_outlineActivision is posting record quarters. Its CEO has been awarded approximately $200 million in bonuses. The company just laid off at least 50 people in the middle of a pandemic. Also: EA’s FIFA Ultimate Team problem, Riot’s CEO cleared of harassment allegations, a ton of M&A news, and more.
TIME STAMPS
- [00:01:52] - Microsoft and Bethesda close $7.5B deal with comments on the future
- [00:11:50] - Sony becomes co-owner of EVO fighting game competition
- [00:15:29] - 2K Games acquires PGA dev HB Studios, signs deal with Tiger Woods
- [00:16:10] - Epic acquires Capturing Reality
- [00:16:42] - Zombies, Run dev Six to Start acquired by OliveX
- [00:17:21] - Super League Gaming to acquire Mobcrush
- [00:19:55] - Keywords Studios purchases majority stake in Tantalus Media
- [00:20:34] - THQ Nordic incorporates new studio for Gothic Remake
- [00:22:13] - Embracer Group stuffs war chest for acquisitions
- [00:22:57] - Jade Raymond’s new studio with backing from Sony
- [00:24:00] - Omeda gets investment to reboot Epic’s Paragon
- [00:26:05] - TinyBuild goes public
- [00:26:22] - Rogue raises Series A funding
- [00:26:45] - Overwolf raises Series C funding
- [00:27:57] - My.Games invests in Espresso Publishing
- [00:28:15] - Ubitus gets investments from big industry players
- [00:28:47] - Incredibuild raises $140 million from a single investor
- [00:29:54] - Roblox finally goes public
- [00:30:29] - Quick Hits
- [00:51:45] - Activision Blizzard lays off during a pandemic amid record earnings
- [01:05:32] - Riot clears CEO of harassment allegations
- [01:10:06] - Loot Boxes under fire as Germany cracks down and EA staff go rogue
SOURCES
Merger, Acquisition, and Investment Stories
- Officially Welcoming Bethesda to Team Xbox (Xbox Wire) - https://news.xbox.com/en-us/2021/03/09/officially-welcoming-bethesda-to-the-xbox-family/
- Welcoming Evo into the PlayStation Family: https://www.sie.com/en/blog/welcoming-evo-into-the-playstation-family/
- Tiger Woods Inks Long-Term Exclusive Deal with 2K: https://www.businesswire.com/news/home/20210316005275/en/Tiger-Woods-Inks-Long-Term-Exclusive-Deal-with-2K
- Epic has acquired Capturing Reality - https://www.epicgames.com/site/en-US/news/capturing-reality-is-now-part-of-epic-games?sessionInvalidated=true
- Zombies, Run dev Six to Start acquired for $9.5m (GamesIndustry) - https://www.gamesindustry.biz/articles/2021-03-08-zombies-run-dev-six-to-start-acquired-for-usd9-5m
- Super League Gaming to Acquire Mobcrush - https://www.globenewswire.com/news-release/2021/03/11/2191124/0/en/Super-League-Gaming-to-Acquire-Mobcrush.html
- Keywords Studios Enters Australia with acquisition of 85% interest in Tantalus Media Pty Ltd: https://irpages2.equitystory.com/websites/rns_news/English/1100/news-tool---rns---eqs-group.html?article=31716382&company=keywords
- Alkimia Interactive to develop Gothic Remake (THQ Nordic): https://www.thqnordic.com/article/alkimia-interactive-develop-gothic-remake
- Introducing Haven, a new Montreal-based independent studio: https://blog.playstation.com/2021/03/16/introducing-haven-a-new-montreal-based-independent-studio/#sf243985526
- Omeda raises $2.2M to relaunch Epic’s dead Paragon as Predecessor (GamesBeat) - https://venturebeat.com/2021/03/09/omeda-raises-2-2m-to-relaunch-epics-paragon-as-predecessor/
- London Stock Exchange welcomes tinyBuild Inc. to AIM - https://www.londonstockexchange.com/discover/news-and-insights/london-stock-exchange-welcomes-tinybuild-aim?lang=en
- Rogue raises $2.5m in Series A funding (GamesIndustry) - https://www.gamesindustry.biz/articles/2021-03-10-rogue-raises-usd2-5m-in-series-a-funding
- Announcing our $52.5M Series C and What is Next for the In-Game Creator Economy (Overwolf): https://medium.com/overwolf/announcing-our-series-c-and-what-is-next-for-the-in-game-creator-economy-693bedd4c01c
- Embracer Group Issues New Shares: https://embracer.com/release/embracer-group-successfully-completed-a-directed-issue-of-36000000-new-b-shares-raising-proceeds-of-roughly-sek-7-6-billion-approximately-usd-890-million/
- MY.GAMES INVESTS IN ESPRESSO PUBLISHING TO BOOST ITS HYPERCASUAL DIVISION: https://my.games/en/news/105
- Ubitus usher in the cloud game era - http://www.ubitus.net/en/release/en20210317.html
- Incredibuild gets $140M to speed up games and other software development with distributed processing tech (TechCrunch): https://techcrunch.com/2021/03/17/incredibuild-gets-140m-to-speed-up-games-and-other-software-development-with-distributed-processing-tech/
General News Stories
- Activision Blizzard Esports Restructuring, 50 Employees Face Layoffs (The Esports Observer): https://esportsobserver.com/abe-restructure-layoffs/
- Sources: Alienware terminates League of Legends global sponsorship following sexual harassment allegations against Riot Games CEO (Dot Esports): https://dotesports.com/news/sources-alienware-terminates-lol-global-sponsorship-allegations-riot-ceo
- Riot Games board finds no wrongdoing by CEO Nicolo Laurent, denies misconduct allegations in new court filing (Washington Post / Launcher): https://www.washingtonpost.com/video-games/2021/03/16/nicolo-laurent-lawsuit-riot-games/
- Loot boxes to generate $20bn by 2025 (GamesIndustry) - https://www.gamesindustry.biz/articles/2021-03-09-loot-boxes-to-generate-usd20bn-by-2025
- German legal reform to set new standards for loot boxes (GamesIndustry) - https://www.gamesindustry.biz/articles/2021-03-09-german-legal-reform-poses-new-threat-to-loot-boxes
- EA investigating allegations of staff selling rare FUT cards - https://twitter.com/EASPORTSFIFA/status/1369761277636005888?s=20
- AN UPDATE ON OUR PLAYER ITEM INVESTIGATION: https://www.ea.com/games/fifa/pitch-notes/news/fifa-21-player-item-investigation-update?isLocalized=true