Episode 195: The Quarter Billion Dollar Subnautica Showdown (News Show)
Release Date: 07/26/2025
Virtual 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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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 ...
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In 2021, Krafton splashed huge cash on Subnautica dev Unknown Worlds. Now, the publisher may find out that buyer’s remorse isn’t a reason for violating a contract. Also… Ubisoft Earnings Circana Reports for May and June 2025 Sony takes a bite out of Bandai Namco On this episode, we discussed a serious attack on artist freedom being perpetrated by payment processors Mastercard and Visa. This attack is motivated by an Australian Christofacist group called Collective Shout that, among other things, does not believe adults should have bodily autonomy. If you would like your voice...
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Following 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 and also purchase! 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...
info_outlineIn 2021, Krafton splashed huge cash on Subnautica dev Unknown Worlds. Now, the publisher may find out that buyer’s remorse isn’t a reason for violating a contract.
Also…
Ubisoft Earnings
Circana Reports for May and June 2025
Sony takes a bite out of Bandai Namco
On this episode, we discussed a serious attack on artist freedom being perpetrated by payment processors Mastercard and Visa. This attack is motivated by an Australian Christofacist group called Collective Shout that, among other things, does not believe adults should have bodily autonomy.
If you would like your voice heard, here are some resources:
A compiled resource document by @voiddebris.bsky.social
Petitions
Mastercard
Phone (US): 1-800-627-8372
Phone (outside US): 1-636-722-7111
Visa
Phone (US): 1-800-847-2911
Some important tips:
Phone calls are more impactful than emails. Do not let support reps push you to email, where keywords can filter out your concerns.
Keep support reps on calls as long as possible. This creates meaningful and measurable dips in call center productivity that management WILL notice.
Call multiple times with the same case number. Call center KPIs include clearing tickets in as short a time and in one call. This is another metric that will grab leadership attention. The service impact should be sustained for at least a month says workforce management professional Elliot Wilson on Bluesky.
You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise!
TIME STAMPS
- [00:02:59] - Ubisoft Earnings
- [00:11:08] - Circana Reports on U.S. Video Game Spending for May and June 2025
- [00:22:28] - Unknown Worlds v Krafton
- [00:35:10] - Mastercard and Visa are Ramping Up Their Censorship (Steam, Itch.io)
- [00:43:54] - Investment Interlude
- [00:48:01] - Quick Hits
- [00:50:25] - Bonus Investment Interlude
- [01:02:16] - Labor Report
SOURCES
- Ubisoft Q1 FY26 Earnings | Ubisoft
- Ubisoft Names Co-CEOs of Spinoff | Variety
- KRAFTON ANNOUNCES GAMING INDUSTRY VETERAN STEVE PAPOUTSIS AS NEW CEO OF UNKNOWN WORLDS | Krafton
- Krafton Delays ‘Subnautica 2’ Game Ahead of $250 Million Payout | Bloomberg (Paywall)
- Fortis Advisors v. Krafton via Aftermath | Scribd (Nicole Carpenter)
- Steam cracks down on some sex games to appease payment processors | Ars Technica
INVESTMENT INTERLUDE
- Bandai Namco and Sony Sign Strategic Partnership | Bandai Namco
- Gamefound acquires Indiegogo | Gamefound
- ‘Subnautica 2’ Publisher Krafton Acquires ‘Last Epoch’ Developer Eleventh Hour Games for $96 Million | Variety
LABOR REPORT
- Tom Clancy, Star Trek: Bridge Crew Studio Ubisoft Red Storm Lays Off 19, Citing 'Global Cost-saving Efforts' | IGN
- Virtuos confirms it's laying off 270 workers across Asia and Europe | Game Developer
- Secret 6 Has Been Closed | Patricia Pérez Menéndez on LinkedIn
- Secret 6 Madrid workers call off strike after agreeing severance terms with Testronic | Game Developer
- Report: Wardogs developer Bulkhead is laying off workers | GamesIndustry
- Airship Interactive entered administration earlier this month | GamesIndustry
- Report: Wayfinder developer Airship Syndicate is laying off staff | Game Developer
- Dark Sky Studio Ganymede Games is Shutting Down | Jerry Prochazka on LinkedIn
HELP OUR GREG WITH HIS MASTERS DISSERTATION!
Our lead moderator and King of Game Showcases, Greg Alderton, is working on his masters dissertation. As part of that, he’s conducting research on cozy spaces in games. We’d be delighted if you’d help him by participating in the research phase.
All you need to do is download a small file from Itch.io here, take a few minutes to experience the two spaces included, and fill out a short form here. Thank you for helping Greg!