Episode 170: Embracer Group Fire Sale Burns Labor (News Show)
Release Date: 03/29/2024
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_outlineWe’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 Ko-Fi and also purchase Virtual Economy merchandise!
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] - GameStop Q4 FY24 Earnings
- [00:33:03] - Investment Interlude
- [00:47:40] - Divestment Dinterlude
- [01:03:42] - Quick Hits
- [01:16:04] - Labor Report
SOURCES
- Gaming Safety Coalition | Gaming Safety Coalition
- GameStop Reports Fourth Quarter and Fiscal Year 2023 Results | GameStop
- Report: Australian studio Torus Games effectively shuts down after 30 years | Game Developer
- Eggnut is Closing | Eggnut (@eggnutgames) on Twitter
- Deviation Games is Closing | Kriste Stull on LinkedIn
- Rooster Teeth Shut Down By Warner Bros. Discovery | Deadline Hollywood
- Crop Circle Update | Jennifer Klasing on LinkedIn
- Velan Studios Layoffs | Velan Studios on LinkedIn
- Something Wicked Layoffs | Eric Webb on LinkedIn
- Smilegate Barcelona reportedly closed and all employees let go | VGC
- Nintendo makes cuts to US QA contractors | GamesIndustry
- A MESSAGE FROM MAX HOBERMAN, CEO OF CERTAIN AFFINITY | Certain Affinity
- SAG-AFTRA “50/50, If Not More Likely” To Strike Against Video Game Companies Soon | Deadline Hollywood
- Microsoft voluntarily recognizes 600-strong Activision Blizzard QA union | Game Developer
- Sega of America workers ratify union contract, protecting 150 employees | Polygon
INVESTMENT INTERLUDE
- TURTLE BEACH ANNOUNCES TRANSFORMATIONAL ACQUISITION OF PDP | Turtle Beach
- Virtuos acquires Beyond-FX | GamesIndustry
- Sensor Tower acquires Data.ai | GamesIndustry
- Stellar Blade studio Shift Up files for IPO | GamesIndustry
- Shinji Mikami founds new studio, Kamuy Inc. | Game Developer
- Popularium secures $2m seed funding for next game by Magic: The Gathering creator Richard Garfield | GamesIndustry
- EMBRACER GROUP CEASES ALL OPERATIONS IN RUSSIA THROUGH THE DIVESTMENT OF SELECTED ASSETS FROM THE OPERATIVE GROUP SABER INTERACTIVE | Embracer Group
- Tencent reportedly takes over two ByteDance games teams | GamesIndustry
- The developer of the two-dimensional game "Nikke" applied for listing at a valuation of 3 trillion won, and Tencent held 24% of the shares Game Grand View | GameLook.com.cn