Virtual Economy

It’s earnings season, so we’re digging into the numbers to help us understand if “Survive until ‘25” is still realistic or if things are going to remain difficult through next year. Also: Circana report on U.S. video game spending for September 2024, a few bright investment items, and a labor report that still shows bumpy roads ahead. 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 [00:03:56] - Desert Bus for Hope [00:05:05] - Circana Report on U.S. Video Game Spending for September 2024 [00:14:26] - EA Q2 FY 25 Earnings [00:27:11] - Microsoft Q1 FY24 Earnings [00:35:45] - Ubisoft Q2 FY25 Earnings [00:39:51] - Remedy Q3 FY24 Earnings [00:45:24] - Capcom Q2 FY25 Earnings [00:51:07] - Take-Two Q2 FY25 Earnings [00:58:35] - Video Game History Museum - Statement on DMCA 2024 Ruling [01:05:14] - Investment Interlude [01:12:06] - Quick Hits [01:14:54] - Labor Report SOURCES Electronic Arts Reports Strong Q2 FY25 Results | EA Earnings Release FY25 Q1 | Microsoft UBISOFT REPORTS FIRST-HALF 2024-25 EARNINGS FIGURES | Ubisoft Business Review: January - September 2024 | Remedy Consolidated financial results for the 2nd Quarter of FY2024 | Capcom Take-Two Interactive Software, Inc. Reports Results for Fiscal Second Quarter 2025 | Take-Two Interactive Second Quarter Fiscal FY25 Results and Guidance Summary | Take-Two Interactive Statement on the DMCA 2024 triennial review ruling | Video Game History Foundation INVESTMENT INTERLUDE ‘Happy Hunting’ Filmmaker Launches Wolf Haus Games With Funding From ‘PUBG’ Developer Krafton | Variety Radical Forge raises £2.6m | GamesIndustry The End of the Beginning | Space Ape Squido Studio raises $3M for social XR game DigiGods | GamesBeat Amplitude Studios is Independent after Sega Split | Romain de Waubert de Genlis on LinkedIn

A scathing report from Hindenburg Research surfaces shocking realities about Roblox’s investor relations and massive failures to protect youth on the platform. Also: Circana Report U.S. video game spending for August 2024, Google is now required to make external app stores more viable, and more.  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 [00:01:26] - Circana Report on U.S. Video Game Spending for August 2024 [00:13:02] - Google Suffers Key Loss in Epic lawsuit [00:18:53] - Roblox Accused of Investor Malfeasance and Failing to Protect Kids [00:37:58] - Investment Interlude [00:47:58] - Quick Hits [01:06:01] - Labor Report [01:18:16] - Listener Question SOURCES Google must crack open Android for third-party stores, rules Epic judge | The Verge Roblox: Inflated Key Metrics For Wall Street And A Pedophile Hellscape For Kids | Hindenburg Research Bandai Namco Cuts Jobs, Culls Titles as Game Sector Woes Deepen | Bloomberg (Paywall) More Embracer Group layoffs: Star Trek Online developer Cryptic Studios is cutting jobs for the second time in a year | PC Gamer Don't Nod admits "challenging times" as "reorganisation project" puts up to 69 jobs at risk | GamesIndustry An Update on How We're Evolving League | Mark Merrill (@MarcMerrill) on Twitter Tequila Works lays off "small number" of staff, cancels unannounced game | GamesIndustry Surgent Studios Puts Games Division on Hiatus | Surgent Studios (@surgentstudios) on Twitter NCSOFT spins off 4 subsidiaries for AI, game development | The Korea Times Scoop: Netflix shuts down 'AAA' Team Blue gaming studio, amid gaming shake-up | Game File INVESTMENT INTERLUDE Ex-Disco Elysium devs announce two rival studios | Game Developer Saudi Arabia trims stake in Nintendo | GamesIndustry Keywords Studios to acquire US-based studio Certain Affinity | Keywords IOI Partners and Leslie Benzies’ Build A Rocket Boy enter a Worldwide Publishing and Distribution Agreement for AAA New Console and PC Game, MindsEye | IOI

Ubisoft has been under fire since a failed hostile takeover attempt in 2018. Since then, a toxic culture of misogyny and harassment was revealed in 2020 leading to an exodus of talent and a string of underperforming releases. Now, a critical game delay, a board review of operations, and a looming strike in France have tanked the share price as the company is fending off an activist investor bent on forcing the company to eject the Guillemot family and take private equity to save the ailing publisher. Also: Another very bad time for labor, another story reveals a power struggle inside Annapurna, and Behaviour acquires a new studio just one week after shutting another down. You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:00:35] - Ubisoft is Having Some Trouble [00:23:56] - What Happened Inside Annapurna Interactive [00:35:56] - Investment Interlude [00:44:28] - Quick Hits [00:57:28] - Labor Report SOURCES Ubisoft updates its financial targets for FY2024-25 | Ubisoft Ubisoft employees in France called to strike over return-to-office mandate | Game Developer Tencent, Guillemot Family Are Said to Consider Buyout of Ubisoft | Bloomberg (Paywall) Inside Annapurna Interactive's Mass Walkout | IGN Annapurna Video-Game Division Imploded Because of Power Struggle | Bloomberg (Paywall) Layoffs at Smite Developer Hi-Rez | Stewart Chisam (@schisam) on Twitter UK studio nDreams confirms layoffs could impact 17.5 percent of workforce | Game Developer Airship Syndicate Lays off 16 People | Airship Syndicate on LinkedIn NetEase subsidiary Skybox Labs lays off 25 people | GamesIndustry Report: VR studio XR Games placing 72 employees at 'risk of redundancy' | Game Developer Redhill Enters Consultation in Advance of Layoffs | Matias Myllyrinne on LinkedIn Concord Director Steps Down As Studio Behind Historic PlayStation Flop Waits For Sony's Decision | Kotaku Gamurs Group employees reportedly hit with more layoffs | GamesIndustry Mountaintop Lays off 13 People | Nicole Carpenter (@sweetpotatoes) on Twitter Maximum Games has Closed Merge Games | Merge Games (@mergegamesltd) on Twitter Sharkmob London faces layoffs after game cancelled | GamesIndustry The Sea is Quiet | Studio Black Flag INVESTMENT INTERLUDE Notice to the Extraordinary General Meeting of Remedy Entertainment Plc | Remedy Future Trash raises $5M to build its IP within Fortnite’s platform | GamesBeat Absurd Ventures launches new studio with Ascendant Studios staff | GamesIndustry Playtika to acquire mobile game maker SuperPlay for up to $1.95B | GamesBeat Behaviour Interactive acquires Red Hook Studios | Behaviour Interactive Devolver launches Big Fan Games, a publishing label dedicated to movie, TV and comic book adaptations | GamesIndustry Red Dead Redemption Lead Designer and Writer Christian Cantamessa and Mario + Rabbids Creative Director Davide Soliani Launch Videogame Company Day 4 Night Studios | Day 4 Night

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!