Episode 168: Switch 2 Switcharoo Could Thwart 2024 Recovery Hopes (News Show)

The PlayStation 5 Pro defies all logic, reaching deeper into diehards’ pockets in the worst economy we’ve seen in 15 years. We break down the challenging economics (while also admiring Mark Cerny’s ASMR-style presentation). Also: GameStop earnings tumble, more Microsoft layoffs, Unity reverses a terrible decision, and can AI companies just stop stealing our stuff? You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! This episode is sponsored by Magic Mind, a supplement shot that includes ingredients to lower your stress, reduce fatigue, and boost your immune system. You can get 20% off your one time purchase of Magic Mind or up to 48% off your first subscription at https://www.magicmind.com/VECONOMY20 using the code VECONOMY20.  TIME STAMPS [00:01:43] - A Quick Chat about PAX West [00:11:27] - The PS5 Pro Defies Logic [00:25:43] - Concord’s Short-Lived Life [00:35:41] - Take This is in Danger of Closing [00:39:54] - OpenAI and Microsoft are Scraping Game Dev Work [00:45:11] - Unity’s Road to Redemption [00:51:30] - Gamestop Q2 FY25 Earnings [00:56:40] - Investment Interlude [01:09:55] - Quick Hits [01:14:45] - Labor Report SOURCES Welcome PlayStation 5 Pro, the most visually impressive way to play games on PlayStation | PlayStation Blog An important update on Concord | PlayStation Blog Take This is in Danger of Closing Forever | Take This This was essentially a two-week long DDoS attack': Game UI Database slowdown caused by relentless OpenAI scraping | Game Developer A message to our community: Unity is canceling the Runtime Fee | Unity GameStop Discloses Second Quarter 2024 Results | GameStop Microsoft lays off 650 more Xbox employees | The Verge Tilting Point making layoffs that could impact 20 percent of global workforce | Game Developer Rocksteady hit by layoffs after Suicide Squad: Kill the Justice League underperforms | Eurogamer Helldivers 2 support studio Toadman Interactive to shut offices in Sweden and Norway | Games Industry Tencent, NetEase Rethink Japan Approach as Game Strategy Stalls | Bloomberg (Paywall) Lost Boys Interactive has Initiating Another Round of Layoffs | Lost Boys Interactive on LinkedIn Merge Games closes Chelford office and announces layoffs | Games Industry Until Dawn remake studio Ballistic Moon lays off staff ahead of the game's release in October | Eurogamer Incubator Dutch Game Garden shuts down in January 2025 | GamesBeat 3 months after firing Dr Disrespect, Deadrop developer Midnight Society confirms 'significant' layoffs | PC Gamer INVESTMENT INTERLUDE Remedy and Annapurna announce a strategic cooperation agreement on Control 2 | Remedy Annapurna Video-Game Team Resigns, Leaving Partners Scrambling | Bloomberg (Paywall) Hopoo Games (Risk of Rain) Developers Join Valve | Hopoo Games (@hopoogames) on Twitter Some Good News for Timbre Games | Joe Nickolls on LinkedIn Nexon to Establish MINTROCKET Corporation | Nexon Urgent Call for Strategic and Structural Changes at Ubisoft Entertainment | AJ Investments Embracer Group receives early payment for sale of Saber assets. | Embracer Group

We had a hunch that EA Sports College Football was going to be big, and it seems to have single-handedly swung the U.S. video game spending report in a positive direction. Also: Lots of earnings, PS5 price hikes, some acquisitions, and more. You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:01:46] - Circana Report on U.S. Video Game Spending for July 2024 [00:09:36] - Square Enix Q1 FY25 Earnings [00:16:53] - Nintendo Q1 FY25 Earnings [00:26:38] - Sony Q1 FY25 Earnings [00:36:43] - Remedy Q2 FY24 Earnings [00:44:59] - Sega Q1 FY25 Earnings [00:49:19] - Take-Two Q1 FY25 Earnings [00:57:16] - Embracer Group Q1 FY25 Earnings [01:02:14] - WB Eyes Games Division Sell-Off [01:11:39] - Investment Interlude [01:19:06] - Quick Hits [01:25:32] - Labor Report SOURCES Square Enix Financial Results Briefing Session | Square Enix Nintendo Consolidated Results for the Three Months Ended June 30, 2023 and 2024 | Nintendo Sony FY2024 Q1 Earnings Announcement | Sony Remedy Entertainment Plc: Half year financial report | Remedy Sega Q1 for the Fiscal Year Ending March 2025 Results Presentation | Sega Sammy Take-Two Interactive Software, Inc. Reports Results for Fiscal First Quarter 2025 | Take-Two Embracer Group publishes Interim Report Q1 | Embracer Group Report: WB Discovery looking to sell off games, other divisions to prevent total breakup | Game Developer Mobile dev Shipyard Games shuts down | Game Developer Meta shuts down Quest developer Ready at Dawn | Game Developer VR studio Archiact is closing down | GamesIndustry 5BY5 Interactive has Closed | Ty Buser on LinkedIn Ubisoft cuts 45 jobs across Cary and San Francisco teams | Game Developer Visual Concepts lays off staff at Lego 2K Drive South studio | Game Developer Payload Studios lays off 25% of staff | GamesIndustry INVESTMENT INTERLUDE KRAFTON Strengthens Global Presence Through Strategic Integration of Tango Gameworks and Hi-Fi RUSH IP | Krafton Virtuos expands into the UK with acquisition of Third Kind Games | Virtuous North Beach Games Opens Prague Studio; Announces Stranded Deep 2 | North Beach Games Publisher Headup Spins off Developer Goon Squad into Fully Independent Studio | Games Press Reforged Studios does a double acquisition, buys Ground Shatter and Extra Mile | Game Developer

Amidst new allegations of insider training, GameStop CEO Ryan Cohen has shuttered Game Informer magazine after 33 years. Also: Earnings time is here, more Bungie layoffs, Netherrealm layoffs, Circana report for June 2024, voice actors on strike, IGN parent Ziff Davis does Humble Games publishing and its partners dirty, and more. This episode is sponsored by Magic Mind, a supplement shot that includes ingredients to lower your stress, reduce fatigue, and boost your immune system. You can get 20% off your one time purchase of Magic Mind or up to 48% off your first subscription at https://www.magicmind.com/VECONOMY20 using the code VECONOMY20.  You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:01:47] - Circana Report on U.S. Video Game Spending for June 2024 [00:11:02] - Ubisoft Q1 FY2025 Earnings [00:17:17] - Paradox Q2 FY2024 Earnings [00:20:55] - Capcom Q1 FY2024 Earnings [00:27:44] - Microsoft Q4 FY2024 Earnings [00:39:18] - EA Q1 FY2025 Earnings [00:49:38] - Investment Interlude [00:53:03] - Quick Hits [01:00:32] - Labor Report SOURCES Ubisoft Q1 FY2025 Earnings | Ubisoft Interim report January – June 2024 | Paradox Consolidated financial results for the 1st Quarter of FY2024 | Capcom Earnings Release FY24 Q4 | Microsoft EA Earnings Release Q1 FY25 | EA Bethesda Game Studios employees form a ‘wall-to-wall’ union | TechCrunch World of Warcraft developers form Blizzard’s largest and most inclusive union | The Verge MORTAL KOMBAT DEVELOPER NETHERREALM STUDIOS HIT WITH MASS LAYOFFS | Insider Gaming Jam City lays off nearly 85 employees as industry fails to hit 'upward trend' | Game Developer Axis Studios goes into administration | Televisual Armor Games Studios has seemingly laid off its publishing team | GamesIndustry Probably Monsters lays off incubation team | Brandi House on LinkedIn Forte shuts down Rumble Entertainment, its second studio closure in two months | GamesIndustry The New Path for Bungie | Bungie Game Informer is Gone | Game Informer INVESTMENT INTERLUDE Warner Bros. Games Acquires Player First Games | Warner Bros. via BusinessWire Look North World raises $4.5m in overall funding | GamesIndustry

Microsoft is making sweeping changes to Game Pass, seemingly to avoid bleeding out on Call of Duty sales. Also: Circana report for May 2024, SAG-AFTRA updates, more Embracer and Paradox cuts, out of control EA executive pay in the face of layoffs, and more. This episode is sponsored by Magic Mind, a supplement shot that includes ingredients to lower your stress, reduce fatigue, and boost your immune system. You can get 20% off your one time purchase of Magic Mind or up to 48% off your first subscription at https://www.magicmind.com/VECONOMY20 using the code VECONOMY20.  You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:01:13] - SAG-AFTRA Updates Independent Development Contracts [00:06:42] - Circana Report on U.S. Video Game Spending for May 2024 [00:13:33] - Microsoft Makes Big Changes to Game Pass [00:28:56] - Investment Interlude [00:44:06] - Quick Hits [00:47:48] - Labor Report SOURCES Life By You is Cancelled | Paradox Forums Paradox Interactive to close down Paradox Tectonic | Paradox Former Paradox Dev comments on Life by You Cancelation | Willem Delventhal on LinkedIn Cities Skylines 2 - Console Development Status | Paradox Forums Pieces Interactive has Been Shuttered by Embracer Group | Pieces Interactive Embracer-owned Gothic, Risen and ELEX developer Piranha Bytes closes | Eurogamer Former Piranha Bytes devs form Pithead Studio | GamesIndustry Galvanic Games is Closing Down | Galvanic Games (@GalvanicGames) on Twitter GOODBYE, HEROES OF ARMANTIA AND KOJI VILLAGERS | Challengers Games Gameloft Toronto staff laid off after studio 'substantially' reduces production activity | Game Developer Perfect World cuts staff in multi-unit layoffs, reportedly suspends game projects | Game Developer Network N lays off eight from games marketing agency Project N | GamesIndustry Gamurs Group reportedly lays off unknown number of staff | GamesIndustry EA execs earned $60 million in 2024 despite layoffs and office closures | Game Developer INVESTMENT INTERLUDE Capcom Makes Minimum Studios Co., Ltd. a Subsidiary Through Share Acquisition | Capcom Keywords Studios reaches £2.2bn acquisition agreement with Swedish investment company EQT | GamesIndustry Daybreak Games, Singularity 6 to Collaborate on Development of Palia | Daybreak Games Arc System Works opens European branch | Arc Systems Works EU (@ASW_Official_EU) on Twitter Dutch publisher Mystic Forge nets €2 million to help indies get to market | Game Developer Kwalee makes minority investment in Devolver Digital | GamesIndustry PULLUP Entertainment Announces its results for the 2023/24 financial year | Pullup Series Entertainment and Pixelberry | Pixelberry Stellar Blade developer Shift Up raises $320m in IPO | GamesIndustry

With the video game industry in the midst of the worst labor crisis we've ever seen, collective action is crucial. We're joined by Chrissy Fellmeth, Kelly Larkin, and Andrew Buczacki to discuss how the International Alliance of Theatrical Stage Employees is supporting labor organization and unionization in the video game industry. Additionally, you can find a transcript of this interview here. For more on IATSE, you can visit their website, YouTube, and Twitch channels. Additionally, you can find more resources at GameWorkers.org and the GameWorkers.org LinkUp.

E3 might be dead, but its spirit is clinging to life (even if just by sheer will of the industry and the JW Marriott lobby). We discuss the trends and big learnings from the showcases and a quick visit to SGF Play Days. Also: GameStop earnings, Circana report for April 2024, the latest labor report, and more. This episode is sponsored by Magic Mind, a supplement shot that includes ingredients to lower your stress, reduce fatigue, and boost your immune system. You can get 20% off your one time purchase of Magic Mind or up to 48% off your first subscription at https://www.magicmind.com/VECONOMY20 using the code VECONOMY20.  You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:00:46] - Summer Game Fest Analysis [00:56:01] - Circana Report on U.S. Video Game Spending for April 2024 [01:01:38] - Gamestop Q1 FY24 Earnings [01:04:37] - Investment Interlude [01:07:00] - Quick Hits [01:26:45] - Labor Report SOURCES GameStop Q1 FY 2024 Earnings | GameStop Gameloft Romania cuts 136 jobs and closes Cluj studio | Game Developer Behaviour to lay off up to 95 employees | GamesIndustry Twitch terminates all members of its Safety Advisory Council | CNBC Sumo Group Update | Sumo Group Just Cause developer Avalanche closing two studios and laying off 50 workers | Game Developer WorldWalker Games Goes Into Hibernation | WorldWalker Games (@wildermyth) on Twitter Gone Fishin'! | League of Geeks INVESTMENT INTERLUDE Former Ubisoft Massive Studio Head Leads New Studio, Bespoke Pixel | Bespoke Pixel

Atari has finally driven its mortal enemy, Intellivision, and heard the lamentations of its pixels. Also: So. Many. Earnings. We’re covering Sony, Square Enix, Ubisoft, Take-Two, and Embracer. Also, a number of new studios were founded as the labor winter trudges on. You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:02:32] - Sony Q4 and full year FY23 Earnings [00:17:46] - Square Enix Q4 and full year FY24 Earnings [00:25:29] - Ubisoft Q4 and full year FY24 Earnings [00:31:04] - Take-Two Q4 and full year FY24 Earnings [00:42:40] - Embracer Group Q4 and full year FY24 Earnings [00:47:13] - Investment Interlude [00:59:33] - Quick Hits [01:04:26] - Labor Report [01:08:25] - FAFO SOURCES FY2023 Consolidated Financial Results | Sony Consolidated Financial Results for the Fiscal Year Ended March 31, 2024 | Square Enix UBISOFT REPORTS FULL-YEAR 2023-24 EARNINGS FIGURES | Ubisoft Take-Two Interactive Software, Inc. Reports Results for Fourth Quarter and Fiscal Year 2024 | Take-Two  EMBRACER GROUP PUBLISHES INTERIM REPORT Q4 | Embracer Group CHANGE OF CFO AND DEPUTY CEO IN EMBRACER GROUP AB | Embracer Group Mighty Kingdom Is Laying Off 28% of Staff | Mighty Kingdom (@MightyKingdom) on Twitter Major Layoffs at Phoenix Labs | Nicole Carpenter (@sweetpotatoes) on Twitter Fragbite Group files bankruptcy for Fall Damage months after purchasing it | Game Developer INVESTMENT INTERLUDE ATARI ACQUIRES INTELLIVISION BRAND | Atari Steel City Interactive raises £15m in funding | GamesIndustry Former Deviation Games devs form new Sony studio | Eurogamer Playmob acquired by PlanetPlay parent to create new green video games powerhouse | PR Newswire ACTIVISION ANNOUNCES ELSEWHERE ENTERTAINMENT | Activision ‘Typical Gamer’ Andre Rebelo Launches ‘Super Studio’ Gaming Company JOGO With $2 Million Investment Into ‘Fortnite’ Content | Variety Relic partners with investment firm to go fully indie again | Game Developer Amazon Games expands global footprint with new development studio in Romania | Amazon Games Note: The Suez Crisis actually took place in 1956, not in 1952. Now, I bet you're wondering why this note is here. GUESS YOU'LL HAVE TO LISTEN TO THE SHOW, FRIEND!

Sony dug a giant hole and dumped all the Helldivers 2 goodwill into the pit (while cutting off 177 countries). Microsoft lit itself on fire and burned player sentiment to the ground. Good times. Also: Take-Two layoffs target a BAFTA winner, Unity has a new CEO with a massive compensation package, the Circana report for March, and earnings, earnings, earnings. You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:03:56] - Unity’s New CEO  [00:13:42] - Circana Report on U.S. Video Game Spending for March 2024 [00:25:08] - Investment Interlude [00:33:51] - Quick Hits [00:40:46] - Labor Report [01:24:21] - Nintendo Q4 FY24 Earnings [01:26:54] - Remedy Q1 FY24 Earnings [01:29:51] - Capcom Q4 FY24 Earnings [01:35:38] - EA Q4 FY24 Earnings [01:42:44] - FAFO Awards (Razer, PlayStation) SOURCES Unity Appoints Matthew Bromberg as New CEO | Business Wire Belka Games lays off 20% of workforce as it becomes "more critical" of future titles | PocketGamer Keoken Interactive Shuts Down (Temporarily, but fully) | Keoken Interactive on Facebook Paladin Studios is Shutting Down | Paladin Studios on LinkedIn Lightforge is Laying Off Staff and Pausing Development On Project O.R.C.S. | Matt Shembari on LinkedIn Prytania Media has Closed the Third of its Four Studios | Dawon Entertainment on LinkedIn Take-Two reportedly shuts down Roll7 and Intercept Games, Private Division suffers layoffs | GamesIndustry Microsoft Closes Redfall Developer Arkane Austin, HiFi Rush Developer Tango Gameworks, and More in Devastating Cuts at Bethesda | IGN Dinga Bakaba Shares Thoughts on Microsoft Studio Closures | Dinga Bakaba (@DBakaba) on Twitter Microsoft’s Xbox Is Planning More Cuts After Studio Closings | Bloomberg (Paywall) Inside Microsoft’s Xbox turmoil | The Verge Microsoft says it needs games like Hi-Fi Rush the day after killing its studio | The Verge Workers seek to alter the balance of power in Canadian video game industry | Polygon Razer, Inc. to Pay More Than $1.1 Million for Misrepresenting the Performance and Efficacy of Supposed “N95-Grade” Zephyr Face Masks | FTC CONSOLIDATED FINANCIAL HIGHLIGHTS | Nintendo Business Update - January-March 2024 | Remedy Consolidated Financial Results for the year ended March 31, 2024 | Capcom Electronic Arts Reports Q4 and FY24 Results | EA INVESTMENT INTERLUDE Atari relaunches Infogrames, immediately buys Totally Reliable Delivery Service | Game Developer Overwolf acquires Nitro | Uri Marchand on LinkedIn CORSAIR Pursuing an Acquisition of Fanatec, the Leading Brand for Sim Racing Hardware | Corsair

The Embracer Group name is going away, splitting its mega-conglomerate into three in an attempt to move on from its destructive legacy. But with Lars Wingefors sticking around to lead the holding company, our expectations are tempered. Also: Meta loses billions more as it tries to become the Windows of MR and earnings season is here! You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:01:54] - Embracer Group Splits Into Three Pieces [00:32:32] - Meta MR Losses Mount [00:42:03] - Paradox Q1 FY24 Earnings [00:44:16] - Microsoft Q3 FY24 Earnings [00:49:10] - Investment Interlude [00:53:08] - Quick Hits [01:01:27] - Labor Report SOURCES EMBRACER GROUP ANNOUNCES ITS INTENTION TO TRANSFORM INTO THREE STANDALONE PUBLICLY LISTED ENTITIES AT NASDAQ STOCKHOLM | Embracer Group ASMODEE SECURES FINANCING AGREEMENT OF EUR 900 MILLION AS PART OF SEPARATION, DELEVERAGING THE REMAINING EMBRACER GROUP | Embracer Group OPEN LETTER BY EMBRACER GROUP CEO ABOUT THE TRANSFORMATION INTO THREE STANDALONE PUBLICLY LISTED ENTITIES | Embracer Group A New Era for Mixed Reality | Meta Interim report January – March 2024 | Paradox Earnings Release FY24 Q3 | Microsoft Modern Wolf lays off six staff in studio restructuring | Game Developer ‘It’s been really painful’: Ex-Lionhead devs explain why they’ve announced, and shelved, a new game | VGC INVESTMENT INTERLUDE Atari Revives Infogrames as a Publishing Label | NewsWire Krafton acquires minority stake in Forever Skies developer Far From Home | Game Developer Rummikub maker Goliath continues push into hobby gaming with Lucky Duck Games buyout | BoardGameWire CMON buys Japon Brand, the company which introduced the world to Love Letter and Machi Koro | BoardGameWire

Two months after Take-Two said it wasn’t planning layoffs it has… well… by now you know. Also, we’re trying something new and fun with this episode. Join us for a lively discussion about keeping the industry healthy and a deep dive into what the heck differentiates III from AA! You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:01:45] - Discussion Time! (How to build a healthier industry and just what does “indie” mean these days?” [00:23:49] - Investment Interlude [00:34:19] - Quick Hits [00:41:01] - Labor Report SOURCES Bold Spirit Games Has Laid Off 30 | Bold Spirit Games (@BoldSpiritGames) on Twitter Palia Dev Lays Off 35 Percent of Workers Only a Few Months After Beta Release | IGN EA reportedly kills Apex Legends' UK-based QA team | Game Developer Take-Two Interactive - Form 8-K | Take-Two Interactive Meow Wolf to cut 165 jobs across multiple states | Santa Fe Reporter Kwalee lays off unknown number of staff as it "reshapes business" | GamesIndustry Jeff and Annie Strain’s Prytania Media Have Closed Possibility Space | Russell Peterson on LinkedIn INVESTMENT INTERLUDE Atari has bought Rollercoaster Tycoon 3 for $7m | Eurogamer Following Baldur's Gate 3, WotC And Hasbro Are Investing $1 Billion In Their AAA Game Ecosystem | GameSpot PUBG maker Krafton leads $15M investment in to UK studio Red Rover Interactive | Game Developer