Episode 179: The $700 PS5 Pro Is An Act of Desperation (News Show)
Release Date: 09/16/2024
Virtual Economy
This was supposed to be a show just about earnings. All we wanted to do was cover the earnings… but Sony closed Bluepoint, Nintendo is releasing $20 Pokemon ROMs, and Microsoft appears to have ousted Phil Spencer and Sarah Bond. Every first party is stepping on rakes. Get your coffee… this is gonna be a thing. You can support Virtual Economy’s growth via our and also purchase! TIME STAMPS [00:01:01] - Circana Report on US Video Game Spending for January 2026 [00:06:51] - Microsoft Earnings Report for Q2 FY2026 [00:16:39] - Sony Earnings Report for Q3 FY2026 [00:25:46] -...
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Ubisoft employees are prepared to strike over a recent return-to-office mandate and extreme cost-cutting. Also: Circana Report on U.S. Video Game Spending for December 2025 and full year 2025, That’s No Moon at odds with former founder, Amazon Games suffers another blow, and Ashes of Creation dev Intrepid implodes. You can support Virtual Economy’s growth via our and also purchase! TIME STAMPS [00:01:04] - Circana Report on U.S. Video Game Spending for December 2025 and Full-Year 2025 [00:12:00] - That’s No Moon Co-Founder Causes $1M Problem [00:21:09] - Valve Faces Down Another...
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2026 is putting us through our paces right out of the gate. We’re hanging onto hope, but layoffs, consolidation, and private equity loom over us like a shadow. On this episode: an update on Paramount’s desperate fight for Warner Bros. Discovery, Saudi Arabia moves video game holdings, and VR’s challenges get much larger. You can support Virtual Economy’s growth via our and also purchase! TIME STAMPS [00:02:35] - A conversation about hardware prices [00:10:16] - Paramount sues Warner Bros for Netflix deal details [00:15:39] - Investment Interlude [00:24:13] - Quick Hits [00:28:07]...
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2025 has continued the trend of layoffs, consolidation, and privatization. The gulf between AAA and everyone else is widening, as the AI bubble strains before an inevitable burst. With November’s Circana report coming in bleak after months of stronger performance, 2026 will continue to challenge us all. BUT... there is reason to hope. Unions are growing in number and reach and studios doomed by AAA mega-corps are finding a way to survive. We need to stick together to not only survive, but thrive. You can support Virtual Economy’s growth via our and also purchase! TIME STAMPS ...
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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...
info_outlineVirtual Economy
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!
info_outlineThe 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 Ko-Fi and also purchase Virtual Economy merchandise!
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 https://www.magicmind.com/VECONOMY20 using the code VECONOMY20.
TIME STAMPS
- [00:01:43] - A Quick Chat about PAX West
- [00:11:27] - The PS5 Pro Defies Logic
- [00:25:43] - Concord’s Short-Lived Life
- [00:35:41] - Take This is in Danger of Closing
- [00:39:54] - OpenAI and Microsoft are Scraping Game Dev Work
- [00:45:11] - Unity’s Road to Redemption
- [00:51:30] - Gamestop Q2 FY25 Earnings
- [00:56:40] - Investment Interlude
- [01:09:55] - Quick Hits
- [01:14:45] - Labor Report
SOURCES
- Welcome PlayStation 5 Pro, the most visually impressive way to play games on PlayStation | PlayStation Blog
- An important update on Concord | PlayStation Blog
- Take This is in Danger of Closing Forever | Take This
- This was essentially a two-week long DDoS attack': Game UI Database slowdown caused by relentless OpenAI scraping | Game Developer
- A message to our community: Unity is canceling the Runtime Fee | Unity
- GameStop Discloses Second Quarter 2024 Results | GameStop
- Microsoft lays off 650 more Xbox employees | The Verge
- Tilting Point making layoffs that could impact 20 percent of global workforce | Game Developer
- Rocksteady hit by layoffs after Suicide Squad: Kill the Justice League underperforms | Eurogamer
- Helldivers 2 support studio Toadman Interactive to shut offices in Sweden and Norway | Games Industry
- Tencent, NetEase Rethink Japan Approach as Game Strategy Stalls | Bloomberg (Paywall)
- Lost Boys Interactive has Initiating Another Round of Layoffs | Lost Boys Interactive on LinkedIn
- Merge Games closes Chelford office and announces layoffs | Games Industry
- Until Dawn remake studio Ballistic Moon lays off staff ahead of the game's release in October | Eurogamer
- Incubator Dutch Game Garden shuts down in January 2025 | GamesBeat
- 3 months after firing Dr Disrespect, Deadrop developer Midnight Society confirms 'significant' layoffs | PC Gamer
INVESTMENT INTERLUDE
- Remedy and Annapurna announce a strategic cooperation agreement on Control 2 | Remedy
- Annapurna Video-Game Team Resigns, Leaving Partners Scrambling | Bloomberg (Paywall)
- Hopoo Games (Risk of Rain) Developers Join Valve | Hopoo Games (@hopoogames) on Twitter
- Some Good News for Timbre Games | Joe Nickolls on LinkedIn
- Nexon to Establish MINTROCKET Corporation | Nexon
- Urgent Call for Strategic and Structural Changes at Ubisoft Entertainment | AJ Investments
- Embracer Group receives early payment for sale of Saber assets. | Embracer Group