Episode 154: What Happens When a $2B Deal Evaporates Overnight? (News Show)
Release Date: 06/11/2023
Virtual 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...
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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...
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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...
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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...
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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!
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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!
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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...
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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] -...
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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 ...
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In 2021, Krafton splashed huge cash on Subnautica dev Unknown Worlds. Now, the publisher may find out that buyer’s remorse isn’t a reason for violating a contract. Also… Ubisoft Earnings Circana Reports for May and June 2025 Sony takes a bite out of Bandai Namco On this episode, we discussed a serious attack on artist freedom being perpetrated by payment processors Mastercard and Visa. This attack is motivated by an Australian Christofacist group called Collective Shout that, among other things, does not believe adults should have bodily autonomy. If you would like your voice...
info_outlineOn 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
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