Virtual Economy
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...
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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 ...
info_outlineUbisoft 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 Annapurna, and Behaviour acquires a new studio just one week after shutting another down.
You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise!
TIME STAMPS
- [00:00:35] - Ubisoft is Having Some Trouble
- [00:23:56] - What Happened Inside Annapurna Interactive
- [00:35:56] - Investment Interlude
- [00:44:28] - Quick Hits
- [00:57:28] - Labor Report
SOURCES
- Ubisoft updates its financial targets for FY2024-25 | Ubisoft
- Ubisoft employees in France called to strike over return-to-office mandate | Game Developer
- Tencent, Guillemot Family Are Said to Consider Buyout of Ubisoft | Bloomberg (Paywall)
- Inside Annapurna Interactive's Mass Walkout | IGN
- Annapurna Video-Game Division Imploded Because of Power Struggle | Bloomberg (Paywall)
- Layoffs at Smite Developer Hi-Rez | Stewart Chisam (@schisam) on Twitter
- UK studio nDreams confirms layoffs could impact 17.5 percent of workforce | Game Developer
- Airship Syndicate Lays off 16 People | Airship Syndicate on LinkedIn
- NetEase subsidiary Skybox Labs lays off 25 people | GamesIndustry
- Report: VR studio XR Games placing 72 employees at 'risk of redundancy' | Game Developer
- Redhill Enters Consultation in Advance of Layoffs | Matias Myllyrinne on LinkedIn
- Concord Director Steps Down As Studio Behind Historic PlayStation Flop Waits For Sony's Decision | Kotaku
- Gamurs Group employees reportedly hit with more layoffs | GamesIndustry
- Mountaintop Lays off 13 People | Nicole Carpenter (@sweetpotatoes) on Twitter
- Maximum Games has Closed Merge Games | Merge Games (@mergegamesltd) on Twitter
- Sharkmob London faces layoffs after game cancelled | GamesIndustry
- The Sea is Quiet | Studio Black Flag
INVESTMENT INTERLUDE
- Notice to the Extraordinary General Meeting of Remedy Entertainment Plc | Remedy
- Future Trash raises $5M to build its IP within Fortnite’s platform | GamesBeat
- Absurd Ventures launches new studio with Ascendant Studios staff | GamesIndustry
- Playtika to acquire mobile game maker SuperPlay for up to $1.95B | GamesBeat
- Behaviour Interactive acquires Red Hook Studios | Behaviour Interactive
- Devolver launches Big Fan Games, a publishing label dedicated to movie, TV and comic book adaptations | GamesIndustry
- Red Dead Redemption Lead Designer and Writer Christian Cantamessa and Mario + Rabbids Creative Director Davide Soliani Launch Videogame Company Day 4 Night Studios | Day 4 Night