Episode 163: Embracer Group Claims Layoffs are How “We Will Win” (News Show)
Release Date: 12/15/2023
Virtual Economy
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 using the code VECONOMY20. You can support Virtual Economy’s growth...
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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 . For more on IATSE, you can visit their , , and channels. Additionally, you can find more resources at and the .
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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 using the code...
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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 and also purchase! 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...
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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 and also purchase! 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...
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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 and also purchase! 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]...
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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 and also purchase! 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 ...
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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 and also purchase! 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] -...
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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
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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_outlineEmbracer 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