Episode 167: Did Microsoft Trigger the FTC’s Trap Card? (News Show)
Release Date: 02/14/2024
Virtual Economy
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 and also purchase! 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] -...
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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 and also purchase! 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...
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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 and also purchase! 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...
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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 and also purchase! 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...
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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 and also purchase! TIME STAMPS [00:] - Ubisoft Shutters Three Studios and Ends XDefiant Development [00:] - Circana Report on U.S. Video Game Spending for October 2024 [00:] -...
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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 and also purchase! 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] -...
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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 and also purchase! 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...
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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 and also purchase! 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...
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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...
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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 and also purchase! This episode is sponsored by Magic Mind, a supplement shot that includes ingredients to lower your stress, reduce fatigue, and boost your immune system....
info_outlineMicrosoft’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