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We're breaking up with Xbox. It's not us, it's you. More layoffs, closed (and practically closed) studios, shuffling of IP, and fawning executives that are trying to convince you that everything's just ducky, when it's really f… you get the point. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:01:39] - PAX West / PAX Rising Recap [00:17:07] - Xbox Continues its Catastrophic Downfall [00:33:54] - Investment Interlude [00:41:58] - Quick Hits [00:47:14] - Labor Report [00:58:13] - Indie Game of the Episode SOURCES Continuing Our Reset | Xbox Age of Empires studio World's Edge reportedly lost "nearly half" of its staff during yesterday's Xbox cuts and move to Activision | Eurogamer State Of Decay 3 Studio Lays Off A 'Significant' Number Of Developers But Says It Won't Impact The Game | Kotaku Halo Studios Former Cinematic Director Promoted and Laid Off in Same Week | Josh Daniels Microsoft CEO says Xbox is simply 'streamlining' after cutting over 5,750 jobs in three years | Game Developer INVESTMENT INTERLUDE Nexus Mods is acquiring database and analytics site SteamDB | Game Developer Trophy Games acquires Airport Simulator: First Class developer Playrion from Paradox Interactive | GamesIndustry Bohemia Interactive acquires minority stake in Everwind developer Enjoy Studio | Game Developer Nex Raises Over $150 Million to Take Nex Playground Business Global | Nex LABOR REPORT The Studio Behind MindsEye Is Closing Following Latest Round Of Layoffs | Kotaku Sega-owned Rovio is shutting down its Copenhagen studio | Game Developer Report: FuturLab lays off devs without informing team leads or managers | Game Developer Life is Strange studio Don't Nod says it may have to lay off 90 staff, warns it may not last beyond January | VGC French publisher Dear Villagers confirms layoffs | Game Developer Polyarc has closed | Polyarc on LinkedIn Layoffs at KO-OP | KO-OP on Bluesky Heart Machine Loses Publisher Funding | Alx Preston on LinkedIn After Years Of Company Stalling, Blizzard Workers Win Mega-Contract That Applies To All Unionized Teams | Aftermath

We've been head-down doing developer things (more on that very soon)! That makes this quite the episode. Earnings! Circana! EA is now privately held! Microsoft is biffing it! Roblox is screwed! And much, much, much more! You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:03:36] - Circana Report on U.S. Video Game Spending for July 2026 [00:17:45] - Microsoft Q4 FY26 Earnings, Console Price Hikes [00:32:02] - Sony Q1 FY27 Earnings [00:39:25] - Nintendo Q1 FY27 Earnings [00:47:34] - Capcom Q1 FY27 Earnings [00:52:57] - Sega Q1 FY27 Earnings [00:59:00] - Square Enix Q1 FY27 Earnings [01:09:50] - Take-Two Q1 FY27 Earnings [01:14:35] - Remedy Entertainment Q2 FY26 Earnings [01:19:40] - Investment Interlude [01:44:53] - Quick Hits [01:51:07] - Labor Report [02:11:37] - Indie Games of the Week SOURCES Earnings Release FY26 Q4 | Microsoft Xbox UK and Europe console price hikes revealed - and it's even worse than we expected | Eurogamer Q1 FY2026 Consolidated Financial Results | Sony Consolidated Results for the Three Months Ended June 30, 2025 and 2026 | Nintendo Consolidated financial results for the 1st Quarter of FY2026 | Capcom Consolidated Financial Results for the Three Months Ended June 30, 2026 (Japanese GAAP) | Sega SQUARE ENIX HOLDINGS CO., LTD. ANNOUNCES FINANCIAL RESULTS FOR THE THREE-MONTH PERIOD ENDED JUNE 30, 2026 | Square Enix Remedy Entertainment Plc: Half-Year Financial Report January–June 2026: CONTROL Resonant set to launch on September 24th | Remedy Take-Two Interactive Software, Inc. Reports Results for Fiscal First Quarter 2027 | Take-Two INVESTMENT INTERLUDE EA Announces Completion of Acquisition by PIF, Silver Lake, and Affinity Partners | EA Judge sets March 2027 trial on Paramount-Warner Bros deal | Reuters Tripledot Studios acquires Supersonic from Unity for $40m | GamesIndustry Secret Mode opens new Sheffield studio to support internal titles | GamesIndustry Deus Ex and Dishonored designer Harvey Smith has a new studio making immersive sims | Engadget Devolver wants to delist because indie publishing is not 'compatible' with public trading | Game Developer Epic Games sells ArtStation and Sketchfab to KitBash | Game Developer Roblox shares plummet by 70% after the company reports persistent decline in player numbers, and of course the solution involves AI | PC Gamer LABOR REPORT Double Fine Laid off 23 People | Double Fine on Bluesky Bethesda layoffs include the artist responsible for designing Skyrim's khajiit and argonians, who had been at the company for 27 years | PC Gamer Candy Crush maker King has declined staff's collective bargaining agreement | Game Developer BREAKING: Netflix to shut down two more game studios | Game File Report: Crossfire dev That's No Moon lays off 14 staff | Game Developer Witcher multiplayer spin-off Project Sirius hit by fresh layoffs | GamesIndustry The studio behind Blumhouse-published horror game Crisol: Theater of Idols has reportedly shut down | VGC Court orders Midgar Studio to liquidate after failing to secure a buyer | GamesIndustry Report: FIFA World Cup developer Refactor Games shuttered by Delphi Interactive | Game Developer The Ambitious Open-World Cyberpunk Action Game Troy Baker Was Working On Gets Hit With Mass Layoff | Kotaku Studio founded by former Star Wars: Galaxy of Heroes GM lays off staff | Game Developer The Alters and Frostpunk developer 11 Bit Studios is laying off 20 employees | Game Developer INDIE GAMES OF THE WEEK Manda - The Incident at Galley House, Developed by William Rous and Evil Trout Mike - Rogue Eclipse, Developed by HUSKRAFTS

Joining us on this episode is friend of the show Mat Piscatella, Executive Director and Video Game Industry Adviser at Circana. Our discussion includes the state of the industry, the component crisis and hardware costs, first party's changing strategy to focus on the biggest spenders, and just what the heck is going on at Xbox and PlayStation. Despite the worrying state of affairs, we also discuss our hopes for the future. Games will always be an art form, and as long as people are playing, artists will continue to pour their hearts into their craft. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise!

Since 2022, the industry has slid into chaos and disarray, with developers and players abandoned by platform holders and publishers. Now, we've reached a tipping point, and only we can rescue ourselves. We'll discuss Microsoft's self-inflicted destruction, Sony's anti-preservation attacks, and the ESA's assault on consumers. Also: Steam Machine pricing, Krafton cowed, Ubisoft makes a catastrophic leadership hire amidst layoffs, and Ryan Cohen's toilet thoughts become part of government record. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:04:22] - Industry Executives are Failing Us. Where Do We Go From Here? (Discussion) [00:33:24] - The ESA Makes Wild Statements It Tries to Walk Back [00:47:07] - Circana Report on U.S. Video Game Spending for May 2026 [00:51:58] - Steam Machine Pricing Details [00:53:17] - Investment Interlude [01:01:14] - BREAKING NEWS (Microsoft) [01:08:11] - Quick Hits [01:12:14] - Labor Report [01:38:57] - FAFO SOURCES Next 100 Days: Xbox Reset Xbox Is Planning To Shutter Peabody-Award-Winning South Of Midnight Studio Compulsion Games | Kotaku Xbox Game Studios boss Craig Duncan steps down | The Game Business Updated Xbox Console Prices | Xbox Bungie Layoffs | Bungie on Bluesky An Update from PlayStation Studios | PlayStation An update on PlayStation Store for PS3 and PS Vita | PlayStation Blog Physical disc production ending in January 2028 for new games releasing on PlayStation consoles | PlayStation Blog The ESA quietly starts walking back baffling statements about private servers being 'illegal', though it's still tutting and wagging its finger | PC Gamer Video Game History Foundation Statement on PlayStation Ending Physical Media | VGHF on Bluesky Steam Machine Pricing Details Emerge | Steam INVESTMENT INTERLUDE GameStop and eBay Tensions Rise After Key Shareholder Vote Fails | Yahoo Finance LABOR REPORT Ubisoft eliminates 93 roles in San Francisco | Game Developer Ubisoft Barcelona staff go on strike over 51 staff being laid off Ubisoft appoints former 2K and Amazon exec Christoph Hartmann to lead Creative House 2, overseeing Splinter Cell, The Division and Ghost Recon | GamesIndustry Weeks After Launching Luna Abyss, Its Entire Development Team At Kwalee Labs Has Been Laid Off | Game Informer Kabam consolidating LA office and making layoffs | Game Developer OtherSide Entertainment lays off 17 staff following game cancellation | Game Developer OtherSide Entertainment lays off 18 from Thick as Thieves team | Game Developer Enginefall developer Red Rover Interactive is making layoffs | Game Developer The Studio Behind A 2025 Xbox Showcase Surprise Just Went Bankrupt | Kotaku VR dev Combat Waffle Studios lays off staff | Game Developer Obsidian sued in class action lawsuit over alleged "systematic pattern of wage and hour violations" | GamesIndustry Magic: The Gathering Arena developers have successfully unionized | Game Developer

Between GameStop and Ryan Cohen's clownery and new Xbox leadership's 100-day death march, it's another grim moment for the game industry. Former OpenAI head (now Xbox CEO) Asha Sharma laments the hardware crisis caused by… AI. We're all trying to find the guy that did this, after all. Look… Sharma is no doubt a sin eater, but as she perches herself on the glass cliff, how many people will suffer? Also: Ubisoft attempts to embargo news of studio closures and layoffs, Destiny 2 rides into the sunset, and… it's earnings time, so we get to talk about why profits don't save jobs. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:10:24] - Circana Report on U.S. Video Game Spending for April 2026 [00:21:33] - Sony FY2025 Consolidated Financial Results  [00:27:34] - Sega Consolidated Financial Results for FY2025-26 [00:31:20] - Nintendo Consolidated Financial Results for FY2025-26 [00:39:02] - Nintendo's Ongoing Patent Lawsuit Hits Another Snag [00:42:17] - Square Enix Consolidated Financial Results for FY2025-26 [00:45:37] - Capcom Consolidated Financial Results for FY2025-26 [00:51:01] - Embracer Group Financial Results for Q4 and Full Year FY2025-26 [00:53:21] - Take Two Financial Results for Q4 and Full Year FY2025-26 [01:05:52] - Investment Interlude [01:16:21] - Quick Hits [01:35:24] - Labor Report SOURCES FY2025 Consolidated Financial Results | Sony Sony raising prices on PS Plus | PlayStation on Twitter Sony Is Being Sued For Allegedly Retaining 'Substantial Windfall' Generated By 'Illegal' Tariffs | Kotaku Consolidated Results for the Years Ended March 31, 2025 and 2026 | Nintendo Notice Regarding Price Revisions for Nintendo Products and Services | Nintendo Nintendo's Ongoing Pokémon Patent Lawsuit Takes Another Hit | Kotaku Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 | Sega Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 | Square Enix Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 | Capcom Embracer Group publishes Interim Report Q4 | Embracer Group Opinion: Lars Wingefors is out of his mind | Game Developer Take-Two Interactive Software, Inc. Reports Results for Fourth Quarter and Fiscal Year 2026 | Take-Two INVESTMENT INTERLUDE eBay Rejects Unsolicited Proposal from GameStop | eBay GameStop increases stake in eBay to more than 6% | Reuters Sensor Tower acquires AppMagic | GamesIndustry Tekken director Katsuhiro Harada is back, but this time at his own studio backed by old fighting game rival SNK | Eurogamer Indika dev Odd Meter raises $5m to fund next project | GamesIndustry LABOR REPORT Xbox Plans Significant Layoffs as It Transforms Under New CEO | Bloomberg (Paywall) Bungie Plans Layoffs After Ending 'Destiny 2' Development | Bloomberg (Paywall) 2K lays off staff working on free-to-play shooter Project Ethos, while hinting at "new direction and focus" | GamesIndustry Report: WWE 2K26 dev Visual Concepts is laying off staff | Game Developer Last Flag studio lays off staff as game from Imagine Dragons brothers misses targets | GamesBeat MercurySteam "initiates a workforce adjustment process" | GamesIndustry Alliance Studios to close after 7 years of creating branded experiences within Fortnite | GamesBeat Team17 has laid off members of its marketing and communications department | Game Developer Merge Mansion dev Metacore lays off 159 employees, closes studios in Germany and Sweden | GamesIndustry Embracer-owned VR developer Vertigo Games closes Amsterdam studio | Game Developer Ubisoft is shutting down its Winnipeg studio | Mobile Syrup Ubisoft closing Winnipeg and Belgrade studios and making further layoffs | Game Developer Pokémon Go Scans Quietly Trained the Navigation Tech Now Headed Into Military Drones | Drone XL Double Fine is the latest team at Microsoft to unionize | PC Gamer

Ryan Cohen was only offered store credit as trade-in value for his time as GameStop CEO, so he's trying to buy eBay in one of the most foolish business moves we've ever seen. Also: Circana Report on U.S. Video Game Spending for March 2026, Microsoft, EA, Remedy, Earnings, the latest labor happenings, and Pearl Abyss dumps CCP for half of what it paid for it. Half Cash, Half Stock. You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:01:41] - Circana Report on U.S. Video Game Spending for March [00:15:42] - Microsoft Q3 FY26 Earnings,, and  [00:24:01] - Xbox Leadership Shakeup  [00:33:14] - Former Art Director at Halo Studios Alleges Unlawful Conduct and Harassment  [00:39:03] - Games Sue Nintendo to Recapture Tariff Fees & U.S. Patent Office Revokes Nintendo Patent [00:41:40] - Electronic Arts Earnings for Q4 FY26 and Full Year FY26 [00:44:45] - Remedy Earnings for Q1 FY26 [00:48:45] - Investment Interlude Headline Story: GameStop's Ryan Cohen Makes Unhinged Offer for eBay (and Bombs CNBC Interview) [01:04:05] - Investment Interlude [01:08:47] - Quick Hits [01:29:00] - Labor Report SOURCES Microsoft Q3 FY26 Earnings | Microsoft Former Halo Art Director Accuses Microsoft of Harassment (Part 1) | Glenn Israel on LinkedIn Former Halo Art Director Accuses Microsoft of Harassment (Part 2) | Glenn Israel on LinkedIn Electronic Arts Reports Q4 and FY26 Results | EA Gamers Sue Nintendo To Get Tariff Money Back | Aftermath US patent office revokes Nintendo's patent on summoning characters to make them battle | VGC INVESTMENT INTERLUDE GameStop Proposes to Acquire eBay at $125.00 Per Share | GameStop Watch CNBC's full interview with GameStop CEO Ryan Cohen | CNBC Warner Bros. shareholders "overwhelmingly" back Paramount's $111bn acquisition | GamesIndustry Shift Up has acquired Resident Evil creator Shinji Mikami's new studio | Game Developer Sony Interactive Entertainment Acquires Cinemersive Labs | Sony Atari acquires emulation studio Implicit Conversions | Game Developer Pearl Abyss sells CCP back to its CEO for less than half what it paid, plus $20 million in crypto | GamesIndustry LABOR REPORT Sony shuts down Dark Outlaw Games and downsizes mobile games development as PlayStation continues to rethink plans | Eurogamer Wanderstop Developer Ivy Road is Shutting Down | Ivy Road Seeker Entertainment is Pausing Production, Furloughing Team | Seeker Entertainment Four Nacon subsidiaries file for insolvency | GamesIndustry GreedFall: The Dying World studio Spiders is reportedly closing its doors after parent company Nacon failed to find a buyer | Eurogamer Embracer Lays off 124 at Eidos-Montreal | Eidos-Montreal on LinkedIn EXCLUSIVE: Eidos Montreal Cancels 7+ Year In-Development Title That Cost Hundreds of Millions | Insider Gaming VR developer Polyarc Games facing layoffs, unspecified number of employees affected | GamesIndustry MechWarrior studio Piranha Games lays off 30% of its employees | PC Gamer Iron Galaxy lays off more people, says it still had too many employees even after 2025's 'last resort' cuts | PC Gamer Dead by Daylight studio Behaviour Interactive confirms layoffs | Game Developer Neill Blomkamp's blockchain studio Gunzilla Games hasn't paid some staff 'for many months', employees allege | VGC Gunzilla CEO Denies Claims Of Not Paying Staff, Rants About 'Haters,' And Brags About Crunch MindsEye studio faces new legal action over employee surveillance software that workers' union alleges was 'recording individuals in their homes and without their consent' | PC Gamer MindsEye Studio Hit With More Mass Layoffs Just As It Was Promising A Turnaround | Kotaku Paste Ends The Games Coverage That Gave So Many Writers Their Start | Aftermath Ubisoft Settles With Developers Who Were Laid Off After Unionizing | Kotaku Announcing United Wizards of the Coast - CWA! | CWA

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 Ko-Fi and also purchase Virtual Economy merchandise! 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] - Update on the Intrepid Studios Implosion [00:45:02] - Investment Interlude [01:05:45] - Quick Hits [01:12:42] - Labor Report [01:39:27] - FAFO Award SOURCES Nintendo Suing U.S. Government Over Tariffs | Aftermath Pokémon rebukes White House's use of its IP in a social media post | NBC News MMO Ashes of Creation spirals into a legal dumpster fire, as investor claims creative director Steven Sharif siphoned millions away from the company while it was drowning in debt | PC Gamer CEO Behind Kickstarter MMO That Ran Out Of Money Breaks His Silence And Claims First Legal Victory | Kotaku Krafton loses lawsuit, is ordered to reinstate ousted Unknown Worlds CEO | Game Developer Unknown Worlds co-founders' lawyers accuse Krafton of "intentionally leaking" Subnautica 2 release date | GamesIndustry INVESTMENT INTERLUDE Netflix Declines to Raise Offer for Warner Bros. | Netflix Netflix boss says Paramount acquisition of Warner Bros will result in "cuts in excess of $16 billion" within "18 months or so" | Games Industry Warner Bros Montréal reportedly hit with staff cuts | GamesIndustry Pacific Drive developer Ironwood Studios raises $4 million in seed funding | Game Developer Good Games Group Launches New Publishing Label Balor Games, Following Acquisition of Humble Games and Firestoke Catalogs | Games Press Velan Studios expands into Canada to build 'breakthrough games' | Game Developer NCsoft acquires 70% stake in mobile developer JustPlay | GamesIndustry BEHAVIOUR INTERACTIVE PARTNERS WITH THE FUN PIMPS, CREATORS OF 7 DAYS TO DIE | Behaviour Interactive Saudi Crown Prince Mohammed Bin Salman's EGDC firm has acquired 5% of Capcom | VGC Savvy Games Group to acquire Moonton Games for $6 billion | Game Developer Evo is dead': Major fighting game tournament is now wholly owned by Saudi megaproject Qiddiya, promises 'traditions, values, and identity will remain unchanged' | PC Gamer Yet another NetEase studio is going independent | Game Developer Nagoshi's Gang of Dragon May Never Come Out After NetEase Cut Funding When It Realized an Extra $44M Was Needed to Finish the Game Amazon abandons upcoming racing game from former Forza devs, as its departure from triple-A publishing continues | Eurogamer LABOR REPORT Today's layoffs | Epic Games Ubisoft Toronto lays off 40 employees, Splinter Cell remake still in development | Mobile Syrup Ubisoft ends game development at Red Storm and lays off 105 workers | Game Developer skate.'s Next Chapter - An Update from Full Circle | Full Circle (EA) Battlefield developers laid off by EA months after Battlefield 6 'shatters records' | Game Developer Riot Games confirms layoffs within publishing division | Game Developer Riot Games lays off roughly 80 employees from 2XKO team | Game Developer Report: NetEase is cutting jobs at internal studio Spliced Inc | Game Developer Den of Wolves studio 10 Chambers announces 'significant restructuring' and layoffs, 'including several of the studio's co-founders' | PC Gamer Highguard Studio Wildlight Lays Off Most Staff | Alex Graner on LinkedIn Highguard In Trouble After Most Of The Studio Laid Off Just Weeks After Launch | Kotaku Tencent's TiMi Studio Group reportedly funded Highguard dev Wildlight Entertainment | GamesIndustry via GameFile Halfbrick Studios is cutting jobs in Australia | Game Developer Killing Floor dev Tripwire Interactive lays off 23 employees | Games industry G.I. Joe Snake Eyes game not cancelled following reported Atomic Arcade studio closure, but its ultimate fate remains unclear | Eurogamer XCOM designer Jake Solomon announces surprise closure of his studio alongside a first look at its canceled life sim, 'the game we poured our hearts into' | PC Gamer Build a Rocket Boy confirms more layoffs amid further claims of "organized espionage and corporate sabotage" | Games Industry Until Dawn remake dev Ballistic Moon has closed | GamesIndustry

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 Ko-Fi and also purchase Virtual Economy merchandise! 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] - Nintendo Earnings Report for Consolidated 9 Months FY2026  [00:29:55] - Remedy Earnings Report for Q4 and Full Year 2025  [00:34:04] - EA Earnings Report for Q3 FY2026  [00:35:25] - Paradox Earnings Report for Q4 and Full Year 2025  [00:41:40] - Capcom Earnings Report for Consolidated 9 Months FY2026  [00:48:30] - Take Two Earnings Report for Q3 FY2026  [00:51:10] - Sega Earnings Report for Consolidated 9 Months FY2026  [00:55:20] - Square Enix Earnings Report for Consolidated 9 Months FY2026  [00:59:30] - Embracer Earnings Report for Q3 FY2026 [01:01:15] - French Publisher Nacon Files for Insolvency  SOURCES Earnings Release FY26 Q2 | Microsoft Q3 FY2025 Consolidated Financial Results | Sony Sony Shuts Down Video-Game Studio Bluepoint | Bloomberg (Paywall) Consolidated Results for the Nine Months Ended December 31, 2024 and 2025 | Nintendo Financial Statements Release - January - December 2025 | Remedy Jean-Charles Gaudechon appointed as the CEO of Remedy | Remedy Electronic Arts Reports Q3 FY26 Earnings | EA Year-end report January – December 2025 | Paradox Consolidated financial results for the 3rd Quarter of FY2025 | Capcom Take-Two Interactive Software, Inc. Reports Results for Fiscal Third Quarter 2026 | Take-Two Consolidated Financial Results for the Nine Months Ended December 31, 2025 | Sega Consolidated Financial Results for the Nine-Month Period Ended December 31, 2025 | Square Enix Embracer Group publishes Interim Report Q3 | Embracer Group NACON ANNOUNCES THAT IT HAS TODAY FILED FOR INSOLVENCY* AND IS REQUESTING THE INITIATION OF JUDICIAL REORGANISATION PROCEEDINGS | Nacon

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 Ko-Fi and also purchase Virtual Economy merchandise! 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 Class Action Suit [00:29:41] - Ubisoft in Disarray [00:52:38] - Investment Interlude [00:57:23] - Quick Hits [01:02:13] - Labor Report SOURCES That's No Moon Ex-CEO Hijacked Domain And Caused A $1M Problem, Cofounders Say In Lawsuit | Aftermath Valve Fails To Get $900m Class Action Lawsuit Over Pricing Thrown Out | Kotaku UBISOFT ANNOUNCES A MAJOR ORGANIZATIONAL, OPERATIONAL AND PORTFOLIO RESET TO RECLAIM CREATIVE LEADERSHIP AND RESTORE SUSTAINABLE GROWTH | Ubisoft Ubisoft Employee Claims He's Placed on Unpaid Suspension for Criticising Return-to-Office Policy | Insider Gaming Ubisoft Fires Team Lead For Criticising Stupid Return-To-Office Mandate | Aftermath Ex-Assassin's Creed boss Marc-Alexis Côté sues Ubisoft after his surprise and "disguised dismissal" | Eurogamer We are shutting it down:' Ubisoft unions call for international strike | Game Developer INVESTMENT INTERLUDE Industry networking platform MeetToMatch acquired by 1SP Agency | GamesIndustry Indie publisher Pixel Doors launches with a 'developer-first' mindset | Game Developer LABOR REPORT Update on our organization | Amazon Christoph Hartmann Out at Amazon | Jason Schreier on Bluesky Report: ProbablyMonsters lays off devs while unveiling Nazi hunting game | Game Developer Wildgate maker Moonshot laying off unspecified number of staff | GamesIndustry Update: Payday developer Starbreeze pushes ahead with 'new wave' of layoffs | Game Developer Report: NetEase Games is cutting jobs in Montreal | Game Developer Studio that developed the infamous Mighty No.9 has shut down for good | Eurogamer Anime action RPG studio Pahdo Labs shuts down despite accruing $17.5M in funding: 'We believed making a demo of a familiar but new game would be our best shot' | PCGamer Tencent subsidiary Sumo Digital is making layoffs | Game Developer MMORPG Ashes of Creation Suddenly Implodes 52 Days After Steam Early Access Launch | WCCFTech Ashes Of Creation Dev Details $3.2 Million Kickstarter Studio's Shocking Collapse: 'None Of Us Are Receiving Our Final Paychecks' | Kotaku Blizzard QA Workers' Newly Ratified Union Contract Locks In Pay Increases, Better Benefits | Aftermath

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 Ko-Fi and also purchase Virtual Economy merchandise! 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] - Labor Report

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 Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:07:28] - Circana Report on U.S. Video Game Spending for November 2025 [00:27:31] - Sony and Tencent Settle Light of Moritram Lawsuit [00:28:43] - Investment Interlude [00:37:27] - Quick Hits [00:43:53] - Labor Report  SOURCES Sony and Tencent settle lawsuit over "slavish clone" of Horizon: Zero Dawn | GamesIndustry INVESTMENT INTERLUDE Tencent makes minority investment in France's Drama Studios | GamesIndustry Disney to Invest $1 Billion in OpenAI in Major Deal That Boosts Sora in Hollywood | The Hollywood Reporter Bandai Namco sells Limbic Entertainment to "private investor" | GamesIndustry LABOR REPORT Naughty Dog Studio Orders Employee Overtime for 'Intergalactic' | Bloomberg (Paywall) Days after launching their first indie game, everyone responsible for publishing it was laid off: 'We had a Slack channel with everyone in it, and then you see them leaving one by one' | PC Gamer We are crowd funding Wreckreation | Three Fields Funcom may have closed down Metal: Hellsinger studio The Outsiders, but its co-founder and Battlefield vet David Goldfarb says it's not over yet | PC Gamer The Studio Behind Doom Just Unionized | Kotaku

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 Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:06:02] - PAX Unplugged Roundup [00:23:44] - Circana Report on U.S Video Game Spending for October 2025 [00:31:49] - Sony Earnings for Q2 FY26 [00:36:49] - Nintendo Earnings for H1 FY26 [00:48:15] - Square Enix Earnings for H1 FY26 [00:54:31] - Take-Two Earnings for Q2 FY26 [00:55:39] - Embracer Group Earnings for Q2 FY26 [00:59:48] - iam8bit is Suing Skybound [01:02:40] - Tencent Pauses Light of Moritram Promotion During Sony Lawsuit [01:03:35] - Krafton CEO Accused of Using ChatGPT to Get Out of Unknown Worlds Earnout [01:06:43] - Investment Interlude [01:24:37] - Quick Hits [01:29:47] - Labor Report [01:38:13] - FAFO SOURCES Q2 FY2025 Consolidated Financial Results | Sony Nintendo Earnings for H1 FY2026 | Nintendo HUGE blow to Nintendo: head of U.S. patent office takes RARE step to order reexamination of "summon subcharacter and let it fight in 1 of 2 modes" patent | Games Fray Financial Results Briefing Session Six-Month Period Ended September 30, 2025 | Square Enix Take-Two Interactive Software, Inc. Reports Results for Fiscal Second Quarter 2026 | Take-Two Grand Theft Auto VI is Now Set to Launch November 19, 2026 | Rockstar Embracer Group publishes Interim Report Q2, July–September 2025 | Embracer Group Embracer Group divests Arc Games and Cryptic Studios | Embracer Group Arc Games Is Now an Independent Publisher | Arc Games iam8bit is suing Skybound Game Studios alleging fraud and theft of designs | Engadget Tencent agrees to stop promoting its Horizon ripoff during Sony lawsuit | Engadget Krafton CEO accused of forming secret task force 'Project X' to seize control of Unknown Worlds | Game Developer Remember Postal? | PC Gamer INVESTMENT INTERLUDE Digiphile - About Us | Digiphile Saudi Fund to Own Almost All of Electronic Arts After Buyout | WSJ via MSN Netflix to Acquire Warner Bros. Following the Separation of Discovery Global for a Total Enterprise Value of $82.7 Billion (Equity Value of $72.0 Billion) | Netflix Netflix Sells Spry Fox Back to Founders | GameFile ‍Paramount launches all-cash tender offer to acquire Warner Bros. Discovery | Paramount LABOR REPORT The Rockstar Workers Fired Before They Could Finish GTA 6 | People Make Games The Messages Rockstar Saw Before Firing 34 Union Members | People Make Games NetEase racks up its third studio casualty in one week, kneecapping dev working on a Warhammer MMO | PC Gamer Splash Damage places entire studio into consultation ahead of redundancies | GamesIndustry Three Fields Entertainment puts entire studio in consultation | Fiona Sperry on LinkedIn Coatsink to lay off half its staff due to "challenging co-development market" | GamesIndustry UK publisher Outright Games confirms layoffs | Game Developer Atomhawk is Closing its Canadian Studio | Atomhawk on LinkedIn Layoffs at Gorilla Tag dev Another Axiom | Jonathan Dearborn on LinkedIn

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 for September 2025, and Microsoft is a little too cozy with the U.S. government.  You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:01:12] - Investment Interlude/Divestment Dinterlude [00:11:01] - Quick Hits [00:24:08] - Labor Report [01:06:11] - FAFO Award SOURCES INVESTMENT INTERLUDE NetEase divests Fantastic Pixel Castle as studio hunts for new publisher to avoid closure | GamesIndustry Neon Doctrine is Closing, Folding into Raw Fury | Iain Garner on LinkedIn Neon Doctrine is Closing, Folding into Raw Fury | Vlad Tsypljak on LinkedIn Warner Bros. Discovery Initiates Review of Potential Alternatives to Maximize Shareholder Value | Warner Bros. Discovery LABOR REPORT Amazon Makes 'Significant' Cuts In Video-Game Division | Bloomberg (Paywall) Ubisoft RedLynx Proposes Strategic Refocus on Small Screens | Redlynx Ubisoft Massive is Restructuring | Massive Open Letter to the Executive Leadership at Build A Rocket Boy | IWDB GameWorkers Grand Theft Auto made him a legend. His latest game was a disaster | BBC Netflix reportedly shutters studio behind Squid Game mobile spinoff | Engadget Rovio is laying off 36 staff, says Angry Birds Dream Blast has 'not been performing as expected' | VGC Testronic shuts down another studio, this time in Bucharest | Game Developer Report: Metroid Dread developer MercurySteamworks accused of retaliation and forced crunch | Game Developer "Si algo hace bien MercurySteam es jugar con el miedo porque no hay otro lugar donde ir": Así se ha degradado el ambiente laboral en uno de los estudios de videojuegos más grandes de España | 3DJuegos Krafton declares transformation into an "AI-first" company, investing over KRW 100 billion. | Kraton Heart Machine making layoffs and ending development on Hyper Light Breaker | Game Developer Outerloop Layoffs | Chandana Ekanayake on Bluesky 'Grand Theft Auto' Studio Accused of Union Busting After Firings | Bloomberg (Paywall) Battle.net Workers Unionize As Microsoft Neutrality Agreement Expires | Aftermath

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 for September 2025, and Microsoft is a little too cozy with the U.S. government.  You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:05:44] - Remembering Tomonobu Itagaki [00:10:32] - Episode 200 Celebration [00:34:14] - Circana Report on U.S. Video Game Spending for September 2025 [00:56:18] - Sony Responds to Tencent's Request to Dismiss Light of Moritram Lawsuit [01:06:57] - EA Earnings [01:17:51] - Capcom Earnings [01:27:49] - Remedy Earnings [01:43:45] - Microsoft Earnings [02:16:00] - Why Is Microsoft Allowing the U.S. Government to Use the Halo IP? SOURCES "I Told Him I Loved Him, Because I Do" - A Tribute To The Late Dead Or Alive Creator Tomonobu Itagaki | Time Extension SIE Opposition to Motion to Dismiss 4142-0511-3185 v.2 | United States District Court - Northern District of California Electronic Arts Reports Q2 FY2026 | EA EA and Stability AI partner to empower artists, designers, and developers | EA United Videogame Workers-CWA Statement on Proposed Electronic Arts Buyout | UVW-CWA Consolidated Results for the Six Months Ended June 30, 2025 | Capcom Inside information, profit warning: Remedy Entertainment Plc lowers operating profit (EBIT) outlook for 2025 and publishes preliminary Q3 key financial figures | Remedy Change of CEO in Remedy Entertainment Plc | Remedy Business Review - January - September 2025 | Remedy Earnings Release FY26 Q1 | Microsoft

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 Ko-Fi and also purchase Virtual Economy merchandise! 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 lawsuit [00:50:13] - Investment Interlude [00:57:46] - Quick Hits [01:01:19] - Labor Report SOURCES Updates to Xbox Game Pass: Introducing Essential, Premium, and Ultimate Plans | Xbox Unity Platform Protection: Take Immediate Action to Protect Your Games and Apps | Unity SONY INTERACTIVE ENTERTAINMENT LLC v TENCENT HOLDINGS | United States District Court, Northern District of California INVESTMENT INTERLUDE Ubisoft Launches Brand-New Subsidiary - Vantage Studios | Ubisoft Splash Damage breaks away from Tencent | GamesIndustry Fragbite sells Playdigious to Griffin Gaming Partners for €10.5 million | Game Developer LABOR REPORT Dune: Awakening developer Funcom announces redundancies | GamesIndustry The Outsiders is closing | David Goldfarb on Bluesky Testronic makes 4.8 percent of its total workforce redundant, closes Madrid and Belgrade studios | Game Developer Digital Extremes layoffs | Justin Kranzl on LinkedIn A Studio Update from Avalanche Studios Group | Avalanche