Virtual Economy
With Epic laying off 1,000 people, the game industry job market has gone from “extremely chilly” to “nearing absolute zero.” Also: a recap of GDC’s challenged year, Circana Report on U.S spending for February 2026, some interesting new investments, NetEase divestments, and a heckin’ FAFO. You can support Virtual Economy’s growth via our and also purchase! TIME STAMPS [00:00:50] - GDC 2026 Recap [00:25:51] - Circana Report on US Video Game Spending for February 2026 [00:35:02] - Nintendo Sues US Government Over Tariffs [00:36:55] - Pokemon Company v. US Government [00:38:24]...
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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...
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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!
info_outlineFollowing strong financial performance in its gaming division, Microsoft is taking a machete to its work force and its future as a serious competitor. Is this the brand’s Red Ring of Death? Also, Bungie runs from Marathon, Warner Bros. goes all-in on safe IP, and the labor report hurts even more than usual.
You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise!
TIME STAMPS
- [00:03:59] - Sony Games & Network Services Update
- [00:16:09] - Marathon Delayed Indefinitely
- [00:27:51] - Sony Brings Four Games Back to 177 Countries
- [00:30:18] - Cleer Arc 3 Gaming Review
- [00:37:52] - Investment Interlude
- [00:42:27] - Quick Hits
- [00:59:46] - Labor Report
SOURCES
- Game & Network Services Segment | Sony
- Marathon Development Update | Bungie
- Sony removes regional restrictions on four of its biggest games on Steam | PC Gamer
- Tencent owns 15% of Helldivers 2 studio Arrowhead, it has emerged | VGC
INVESTMENT INTERLUDE
- Sensor Tower Acquires Playliner to Expand Live Ops Intelligence Across Mobile Gaming | Sensor Tower
- Warner Bros. Games Restructures Into Divisions Based on ‘Game of Thrones,’ Harry Potter, ‘Mortal Kombat’ and DC Universe | Variety
LABOR REPORT
- Microsoft Begins Deep Job Cuts Across Xbox Division | Bloomberg (Paywall)
- Microsoft to lay off as many as 9,000 employees in latest round | Seattle Times
- Lost Records and Jusant developer Don't Nod is laying off staff | Eurogamer
- Bloodlines 2 developer The Chinese Room has laid off employees, but Paradox says the game is still coming in October | PC Gamer
- Hypixel Studios has Canceled Hytale and Will Wind Down | Hypixel Studios on Twitter
- MindsEye Developer Build a Rocket Boy Begins Layoff Process Amid Disastrous Launch, Studio Sources Say | IGN
- MindsEye Dev's UK Workforce of Around 300 Receive At-Risk Emails as Former GTA Lead Leslie Benzies Finally Addresses Staff | IGN
- Cyan Worlds Has Gone Through Another Round of Layoffs | Cyan Worlds on Bluesky
- Studio Camelia has Closed | Studio Camelia on LinkedIn
- Star Wars: Hunters Publisher Shutters Studio Founded by Torchlight, Diablo Creator Before It Could Announce Its New Game | IGN
- People Can Fly Undergoes Layoffs | People Can Fly on LinkedIn
- Major layoffs at Playtika with up to 160 jobs cut on Best Fiends and Redecor teams | MobileGamer.biz
- Subway Surfers Blast developer Outplay Entertainment has laid off 21 workers | Game Developer
- RuneScape studio Jagex lays off an undisclosed number of 'non-player facing' staff | Game Developer
- Cult of the North Shutting Down | Adam Schaub on LinkedIn
- Report: Return to Moria developer Free Range Games lays off 80 people | Game Developer
- Sony is making layoffs at Days Gone developer Bend Studio | Game Developer
- French court convicts ex-Ubisoft bosses for workplace harassment | AFP
- Video Game Workers Reach Historic Tentative Contract Agreement with Microsoft | CWA