Episode 192: PAX East Takes A MAGFest Turn (News Show)

With our Switch 2 in-hand, we’re ready to give you our early feelings about the console in this challenging market. Also: SO many earnings. Like… SO many. Nintendo, Sony, EA, Take-Two, Remedy, Embracer Group, Paradox, Square Enix, Capcom, and Sega. You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:05:02] - Switch 2 Impressions [00:41:28] - Nintendo FY25 Earnings [00:47:16] - Sony FY24-25 Earnings [00:51:17] - EA Q4 and FY25 Earnings [00:56:43] - Take-Two Q4 and FY25 Earnings [01:04:24] - Remedy Q1 FY25 Earnings [01:07:57] - Embracer Group Q4 and FY25 Earnings [01:15:24] - Paradox Q1 FY25 Earnings [01:24:38] - Square Enix FY25 Earnings [01:29:49] - Capcom FY25 Earnings [01:35:56] - Sega FY25 Earnings SOURCES Nintendo FY 25 Results | Nintendo FY2024 Consolidated Financial Results | Sony Electronic Arts Reports Q4 and FY25 Results | EA EA Pushes Full Return to Office, Effectively Ends Remote Hiring | IGN Take-Two Interactive Software, Inc. Reports Results for Fourth Quarter and Fiscal Year 2025 | Take-Two Remedy Entertainment Plc: Business Review January–March 2025 | Remedy Embracer Group publishes Interim Report Q4 | Embracer Group Interim report January – March 2025 | Paradox Results Briefing Session for the Fiscal Year ended March 31, 2025 | Square Enix Consolidated Financial Results for the Year Ending March 31, 2025 | Capcom Consolidated Financial Results for the Year Ending March 31, 2025 | Sega

PAX East isn’t the show it was 10 years ago. With most AAA developers staying away, indies take center stage. Also: Circana report for April 2025, GameStop sells off its Canadian holdings, Curve Games has a new owner, the SAG-AFTRA voice performer strike enters the endgame, and much more. We’ve also got a pair of great listener questions! You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:03:10] - Circana Report on U.S. Video Game Spending for April 2025 [00:17:36] - PAX East Recap [00:52:48] - Investment Interlude [01:09:12] - Quick Hits [01:17:15] - Labor Report [01:34:37] - Listener Questions INVESTMENT INTERLUDE Universal Distribution completes Alliance Game Distributors buyout from Diamond Comics after chaotic bankruptcy auction | BoardGameWire Curve Games Acquired by Nazara Technologies | Curve Games Apple acquires RAC7, its first-ever video game studio | Digital Trends NCsoft makes "strategic equity investment" in Empty Vessel | GamesIndustry Griffin Gaming Partners Leads €12M Series A in Amplitude Studios | Griffin Gaming Partners Sony PlayStation establishes new studio, teamLFG, to work on "an ambitious incubation project" | GamesIndustry Starbreeze acquires publishing rights to troubled Payday 3, says move will 'accelerate development roadmap' | Eurogamer Brightika expands to PC and console with $3m investment for indie devs | GamesIndustry LABOR REPORT EA Cancels Black Panther Game, Closes Cliffhanger Games | IGN Microsoft announces plans to lay off thousands more workers | VGC Video Game Companies Release Final Offer to SAG-AFTRA Addressing AI Demands Amid 9-Month Strike (EXCLUSIVE) | Variety Video Game Companies Remove AI Provision on Unlimited Digital Replicas From ‘Best, Last and Final’ Offer to Actors Union (EXCLUSIVE) | Variety SAG-AFTRA's Interactive Media Agreement Negotiating Committee Responds to Video Game Employers | SAG-AFTRA SAG-AFTRA Statement on Fortnite’s Use of A.I. Darth Vader Voice and ULP Filing | SAG-AFTRA THQ Nordic studio that was set to be closed in 2023 somehow escaped the Embracer death spiral and is now working on a new RPG | PC Gamer

Microsoft is jacking prices on hardware, software, and peripherals. With costs going up while interest in Microsoft’s offerings declining, we have to wonder if Microsoft is applying pressure to push Game Pass. Also: Circana report on U.S. Video Game Spending for March 2025, Apple scores an own-goal and pisses off the Court, the tabletop industry is in freefall, and EA lays off another 300 to 400 people. You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:1:31] - GTA 6 Delay [00:12:06] - Circana for March 2025 [00:17:43] - Devolver Digital Investor Presentation  [00:24:36] - Microsoft Q3 FY25 [00:45:36] - Investment Interlude [00:56:59] - Quick Hits [01:06:42] - Labor Report [01:24:58] - FAFO SOURCES Earnings Release FY25 Q3 | Microsoft Investor Presentation - 2024 Results | Devolver Digital Devolver Digital lays off almost half of Reigns studio Nerial | Eurogamer A judge just blew up Apple’s control of the App Store | The Verge New Epic Games Store Webshops and Revenue Share Update | Epic Games INVESTMENT INTERLUDE Blue Ocean Games Terms & Conditions | Blue Ocean Games LABOR REPORT Online board game seller Boardlandia shuts down after tariffs add “unsustainable burden” to company’s existing challenges | BoardGameWire CMON announces layoffs, will stop ‘all future game development’ and crowdfunding efforts | Polygon Report: Meta has laid off over 100 Reality Labs employees | Game Developer Mighty Yell Undergoes Layoffs | Mighty Yell on Bluesky Respawn Layoffs | Respawn on Twitter Electronic Arts Lays Off Hundreds, Cancels ‘Titanfall’ Game | Bloomberg (Paywall)

The original Nintendo Switch launched at $300 USD. The Switch 2 price was absent from the huge Nintendo Direct, only to be quietly revealed at $450. As for game prices, Mario Kart World is a whopping $80. Costs are on the rise, and the latest tariffs have spiked the price of accessories. So… where do we go from here? Also… Ubisoft slices off its most profitable franchises, lots of layoffs, and a huge game publisher strike. You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:02:53] - Nintendo Switch 2 and The Return of Paul Rudd, Gamer Dude [00:43:22] - Ubisoft Slices Off an Arm to Make a Tencent Deal [00:53:41] - Gamestop Q4 and Full Year Earnings [00:58:49] - Investment Interlude [01:01:36] - Quick Hits [01:14:37] - Labor Report SOURCES Nintendo Switch 2 Launches June 5 at $449.99 | BusinessWire Ubisoft Accelerates its Transformation by Laying Foundation for New Operating Model | Ubisoft GameStop Reports Fourth Quarter and Fiscal Year 2024 Results | GameStop INVESTMENT INTERLUDE Krafton acquires controlling stake in Indian gaming studio Nautilus Mobile for $14M | TechCrunch Say hi to the new Supercell Investments | Supercell LABOR REPORT Cyan Worlds Lays off Half its Staff | Cyan Worlds on Twitter Plaion: Job cuts at Munich-based Embracer division (Update) | Games Wirtschaft Plaion Lays Off a Reported 40 People | Plaion Crystal Dynamics lays off 17 employees | GamesIndustry Major Layoffs at Eidos-Montreal | Eidos-Montreal on LinkedIn More Layoffs at Lost Boys Interactive? | Bryan Harmon on LinkedIn Atomhawk Design Announces Layoffs | Atomhawk Design on LinkedIn PlaySide Studios is Restructuring | PlaySide Studios on LinkedIn Supermoves Developer Makea Games is Shutting Down | Makea Games Brass Lion Has Conducted Layoffs | Brass Lion on LinkedIn ZeniMax union votes to authorize a strike | The Verge

Warner Bros. continues to chip away at its infrastructure and consumer confidence with the closure of three more studios. Also: Circana reports for Jan and Feb, a recap of GDC and developers’ feelings about the industry, a curious period for investments, a new union looks to cover the entire industry, and more. You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:03:00] - Circana Report on U.S. Video Game Spending for January 2025 [00:11:59] - Circana Report on U.S. Video Game Spending for February 2025 [00:21:39] - GDC 2025 Recap [00:54:29] - Investment Interlude [01:14:23] - Quick Hits [01:22:11] - Labor Report SOURCES Warner Bros. Shuts Down Three Game Studios, Cancels Wonder Woman Title | Bloomberg (Paywall) Studio Fizbin's Last Magic Trick: “Reignbreaker” | Studio Fizbin Layoffs at Wizards of the Coast's Skeleton Key Studio | Nassim Ait-Kaci on LinkedIn PlayStation Hit With More Layoffs Following Recent Game Cancellations | Kotaku Mountaintop is Shutting Down | Spectre Divide on Twitter Respawn lays off staff, cancels another unannounced game | Game Developer Free Range Games has Undergone Layoffs | Free Range Games on LinkedIn Fallout and Obsidian veterans ditch open-world game plans as team shrinks to a "skeleton crew" | Eurogamer Wizards of the Coast winds down Sigil VTT team | Andy Collins on LinkedIn Sunsetting Seekers of Skyveil | Elodie on Steam UVW-CWA unveiled at GDC 2025 | UVW-CWA INVESTMENT INTERLUDE Emona Capital completes acquisition of UK publisher Secret Mode | Secret Mode Emona Capital makes investment in Blackbird Interactive | Blackbird Interactive on LinkedIn GTA developer Rockstar acquires Video Games Deluxe to expand into Australia | Game Developer Former NetEase director self-funds new studio to ensure "management protects creators" | GamesIndustry Tencent acquires additional shares in FromSoftware parent company, Kadokawa | GamesIndustry PlayStation has formed new studio Dark Outlaw Games with Call of Duty Zombies lead Jason Blundell | VGC Niantic’s Next Chapter | Niantic Jam City Sells Ludia to Canadian Investors | Joshua Yguado on LinkedIn

Despite mounting evidence that Games as a Service are struggling, executives continue to go back to that empty well. Also: A ton of earnings reports (Nintendo, EA, Paradox, Square Enix, Sega, Ubisoft, Remedy, Embracer Group, and Sony), the labor picture worsens, and Niantic may be exiting the gaming space. You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:01:58] - Nintendo Q3 FY25 Earnings [00:16:07] - EA Q3 FY25 Earnings [00:30:18] - Paradox FY24 Earnings [00:34:40] - Take Two Q3 FY25 Earnings [00:36:46] - Square Enix Q3 FY25 Earnings [00:40:17] - Sega Q3 FY25 Earnings [00:42:52] - Ubisoft Q3 FY25 Earnings [00:44:49] - Remedy FY24 Earnings [00:47:15] - Embracer Group Q3 FY25 Earnings [00:50:18] - Sony Q3 FY25 Earnings [00:54:11] - Investment Interlude [01:01:38] - Quick Hits [01:05:18] - Labor Report SOURCES Consolidated Results for the Nine Months Ended December 31, 2023 and 2024 | Nintendo Electronic Arts Reports Q3 FY25 Results | EA Battlefield Labs | EA END OF KAIZEN REVIEW | EA Year-end report January – December 2024 | Paradox Paradox Interactive acquires Haemimont Games | Paradox Consolidated Financial Results for the Nine-Month Period Ended December 31, 2024 | Square Enix Consolidated Financial Results for the Nine-Month Period Ended December 31, 2024 | Sega UBISOFT REPORTS THIRD-QUARTER 2024-25 SALES | Ubisoft Remedy Entertainment Plc: Financial Statements Release January-December 2024 | Remedy Embracer Group publishes Interim Report Q3 | Embracer Group Q3 FY2024 Consolidated Financial Results | Sony INVESTMENT INTERLUDE Dead Astronauts Secures €4M In Oversubscribed Seed Round | Dead Astronauts nDreams establishes new internal studio, shutters two others | GamesIndustry GameStop Announces Plan to Pursue a Sale of French and Canadian Operations | GameStop ‘Pokémon Go’ Maker Nears $3.5 Billion Deal to Sell Games Unit | Bloomberg (Paywall) LABOR REPORT Sumo Group is Refocusing and Undergoing Layoffs | Sumo Group on LinkedIn Iron Galaxy Layoffs | Iron Galaxy on LinkedIn Report: ProbablyMonsters conducting more layoffs after pledging to build 'stable home for developers' | Game Developer Report: Hi-Rez Studios laid off dozens of developers from Smite team | Game Developer Crytek is Laying Off 15% of its Workforce | Crytek on LinkedIn VR dev Toast Interactive lays off majority of staff | Game Developer Liquid Sword makes "deeply regrettable" job cuts for "the studio's long-term sustainability" | GamesIndustry Netflix has laid off staff at Oxenfree developer Night School Studio | Game Developer Bossa Games Layoffs | Bossa Games on LinkedIn EXCLUSIVE: 10:10 Games Employees Offered No Severance, Layoffs Happened While On Holiday, And More | Insider Gaming Layoffs at NetEase on the Marvel Rivals team | Jack Burrows on LinkedIn Layoffs at NetEase on the Marvel Rivals team | Thaddeus Sasser on LinkedIn

There are few things worse than yet another company laying people off… and EA has committed the sin of obfuscating job losses. Also: Earnings season is underway, the Circana report for December 2024 and the full year, a recap of the GDC State of the Industry report, and more. You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:00:49] - EA Takes a Tumble [00:12:58] - Microsoft Q2 FY25 Earnings [00:19:38] - Capcom Q3 FY25 Earnings [00:25:39] - Circana Report on U.S. Video Game Spending for December 2024 and Full Year 2024 [00:35:25] - Learnings from the GDC State of the Industry Report [01:05:38] - Investment Interlude [01:14:06] - Quick Hits [01:25:21] - Labor Report [01:38:15] - Listener Questions [01:50:18] - FAFO SOURCES Electronic Arts Pre-Announces Preliminary Q3 FY25 Results | EA Electronic Arts EVP Jacob Schatz sells shares worth $215,174 | MSN Earnings Release FY25 Q2 | Microsoft Consolidated financial results for the 3rd Quarter of FY2024 | Capcom Meta Reports Fourth Quarter and Full Year 2024 Results | Meta The drone pilot who took out an LA firefighting plane pleads guilty to escape prison | The Verge INVESTMENT INTERLUDE Pocketpair launches publishing business [Pocketpair Publishing] and announces first publishing partnership with SURGENT STUDIOS. | Pocketpair Virtuos acquires three studios to 'significantly augment' development support capabilities | Game Developer Board game distribution major Alliance gets $39m buyout bid as owner Diamond Comics files for bankruptcy protection | BoardGameWire Closing of Easybrain divestment | Embracer Group LABOR REPORT BioWare Studio Update | BioWare Blog Reflector confirms more layoffs after Unknown 9 falls short of expectations | Game Developer Phoenix Labs Lays Off Most of Its Staff | Phoenix Labs on LinkedIn Ubisoft Layoffs and Closures | Ubisoft Leamington on LinkedIn Fast Travel Games Lays off 30 People | Fast Travel Games on LinkedIn Studio co-founded by Dr Disrespect closing after three years working on new FPS | PCGamesN

The year has begun, and the industry is already off to an intense start. On this episode, we discuss the business decisions behind the Switch 2’s departure from “Weird Nintendo,” Ubisoft’s precarious position, the U.S. ruffling Tencent’s feathers, and the Consumer Financial Protection Bureau’s move to regulate premium game currency. You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:03:27] - The Switch 2 has finally been announced [00:19:11] - The United States labels Tencent a military asset [00:22:16] - The U.S. Consumer Financial Protection Bureau turns its eye to premium game currency [00:26:15] - The U.S. Federal Trade Commission sets new precedent regarding sales of loot boxes [00:37:16] - Investment Interlude  [00:48:47] - Quick Hits [00:54:39] - Labor Report SOURCES US designates Tencent and CATL as Chinese military companies | The Verge LFG (Looking for gamers): CFPB wants to hear about your video game loot | Consumer Financial Protection Bureau CFPB Seeks Input on Digital Payment Privacy and Consumer Protections | Consumer Financial Protection Bureau Banking in video games and virtual worlds | Consumer Financial Protection Bureau Genshin Impact Game Developer Will be Banned from Selling Lootboxes to Teens Under 16 without Parental Consent, Pay a $20 Million Fine to Settle FTC Charges | U.S. Federal Trade Commission INVESTMENT INTERLUDE Ex-Annapurna Video-Game Staff to Absorb Former Take-Two Indie Label | Bloomberg (Paywall) Strategic Update | Ubisoft ANALYSIS: Ubisoft Faces Its Most Challenging Year in its History | Insider Gaming Tencent, Guillemot Family Said to Mull Ubisoft Asset Venture | Bloomberg (Paywall) NetEase pulls funding for another studio: Former Halo Infinite design head says Jar of Sparks is 'halting work' while it looks for a new publisher | PC Gamer Maximum Entertainment divests Merge Games assets to Silver Lining | GamesBeat LABOR REPORT Suicide Squad: Kill the Justice League developer Rocksteady hit by end-of-year layoffs | Eurogamer The First Gaming Layoffs Of 2025 Have Happened | Insider Gaming via YNA EXCLUSIVE – Cloud Imperium Games Undergoes Major Shake-Up to Hit Deadlines | Insider Gaming GameStop is Silently Shutting Down More US Stores | Insider Gaming Robocraft 2 developer Freejam shuts down | Game Developer Splash Damage is Ending Development on Transformers: Reactivate and Scaling Down | Splash Damage on Twitter Toadman Interactive has been Closed by Daybreak | Senol Kandemir on LinkedIn Microsoft conducts 'small' layoffs across various divisions | Game Developer VR studio Soul Assembly has laid off 15 percent of its workforce | Game Developer Group Customer Harassment Policy | Square Enix STJV union calls for extended strike at Don't Nod with layoffs looming | Game Developer

34,000. That’s how many jobs have been lost in our industry since the start of 2022. We recap the year, discuss PAX Unplugged and The Game Awards, and look ahead at what to expect in 2025. We did a deep dive on tabletop card game trends and the looming tariffs for all of our fellow tabletop gaming nerds, too! You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:05:17] - Reflecting on PAX Unplugged 2024 [00:27:44] - Our Time at the TGAs [00:32:54] - Circana Report on U.S. Video Game Spending for November 2024 [00:39:23] - Gamestop Q3 FY24 Earnings [00:41:30] - Investment Interlude [00:47:21] - Quick Hits [00:55:50] - Labor Report SOURCES GameStop Discloses Third Quarter 2024 Results | GameStop INVESTMENT INTERLUDE KADOKAWA and Sony Agree to Form Strategic Capital and Business Alliance | Sony Cooldown Games Formed by WB, Gearbox, and id Software Veterans | Cooldown Games on LinkedIn Reforged Studios acquires Yellow Lab Games | GamesIndustry LoopMe Acquires Chartboost from Zynga, Accelerating its Mission to Power Brand Advertising Across the Digital Ecosystem | Business Wire Build a Rocket Boy acquires PlayFusion | VGC Dark Passenger Receives $3M Investment from The Games Fund | Ilia Eremeev on LinkedIn LABOR REPORT In what will surely come as no surprise at all, the end of Suicide Squad means layoffs at Warner Bros. | PC Gamer People Can Fly hit with another round of layoffs | GamesIndustry Glow Up Games is shutting down | Mitu Khandaker on LinkedIn Layoffs at Deck Nine Games | Deck Nine Games on Twitter Hothead Games is Shutting Down After 18 Years | Hothead Games on LinkedIn ZeniMax Online Studios workers form their own union | Engadget

We now know that Microsoft wasn’t kidding when they said they had no intention of pulling Call of Duty from PlayStation. Whether the Game Pass Gambit pays off or not, Black Ops 6 is selling great on Sony’s console. Also: the rest of the Circana report on U.S. Video Game Spending for October, a pair of Mass Effect alums run into funding trouble, and more. You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:] - Ubisoft Shutters Three Studios and Ends XDefiant Development [00:] - Circana Report on U.S. Video Game Spending for October 2024 [00:] - Investment Interlude [00:] - Quick Hits [00:] - Labor Report SOURCES Ubisoft Discontinues Development on XDefiant | Ubisoft Thought Pennies cuts headcount as project loses funding | GamesIndustry Heart Machine is Undergoing Layoffs | Sol Brennan on LinkedIn A Message to the Reflector Community | Reflector Humanoid Origin, the Studio Co-Founded by Mass Effect Director Casey Hudson, is Shutting Down | Humanoid Origin on LinkedIn BioWare alum Mac Walters freezes indie studio Worlds Untold amid funding search | Game Developer Report: Kwalee lays off "at least 10" people | GamesIndustry Torn Banner is Undergoing a Restructure and Layoffs | Torn Banner on LinkedIn Report: Lilith Games cuts 40 staff as Project Party undergoes changes | PocketGamer 2K Games' motion capture studio votes to unionise | GamesIndustry INVESTMENT INTERLUDE Exclusive: Sony is in talks to buy media powerhouse behind 'Elden Ring' | Reuters FromSoftware parent Kadokawa confirms buyout interest from Sony | GamesIndustry Play Ventures raises $140m in third gaming fund | GamesIndustry Tencent acquires majority stake in Kuro Games | GamesIndustry Bandai Namco subsidiary Bandai Namco Online to be dissolved and merged with parent company | GamesIndustry My.Games sells hyper-casual game publisher Mamboo | GamesIndustry