Episode 204: Ubisoft's Hail Mary (News Show)

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

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 Ko-Fi and also purchase Virtual Economy merchandise!

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 Ko-Fi and also purchase Virtual Economy merchandise!