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In this week’s video game news roundup, we dive into the chaos of Diablo 4 Season 9 and the rocky launch of Patch 2.3.1, as Blizzard scrambles to fix yet another broken update. We cover the Diablo 4 skill tree rework plans and what’s next for the game.

Meanwhile, Microsoft layoffs 2025 hit Raven Software, and reports reveal Candy Crush AI layoffs as developers are replaced by tools they helped build. Over at Valve, Steam adult games are being banned due to payment processor policies from companies like Visa and Mastercard—raising concerns about game censorship on Steam.

We also look at how generative AI in games is growing fast, with 1 in 5 new Steam AI games 2025 disclosing AI-generated content.

In legal drama, Subnautica 2 is delayed, and the devs are suing Krafton in a $250 million dispute. Plus, Donkey Kong Bananza swings in with rave reviews, becoming one of the top reviewed games of 2025 and a must-play Switch 2 game.

Time stamps:

00:00 Intro

03:07 Diablo 4

07:41 Microsoft Layoffs

11:19 Steam

15:06 Subnautica 2

19:13 Donkey Kong

Links:

PezRadar on patch rollback: https://x.com/PezRadar/status/1945187466568409500

Diablo 4 Skill Tree interview: https://www.ign.com/articles/as-diablo-4-launches-season-8-blizzard-responds-to-roadmap-criticism-reveals-plans-to-update-the-skill-tree-and-explains-controversial-battle-pass-changes

Raven Software layoffs: https://www.wpr.org/news/wisconsin-video-game-developer-layoffs-microsoft-cuts

Candy Crush AI: https://mobilegamer.biz/laid-off-king-staff-set-to-be-replaced-by-the-ai-tools-they-helped-build-say-sources/

Candy Crush AI 2: https://www.gamesindustry.biz/sources-suggest-that-staff-laid-off-at-king-will-be-replaced-by-ai-tools-they-helped-to-create

Zenimax Union: https://www.ign.com/articles/zenimax-union-responds-to-microsoft-canceling-unannounced-mmo-a-future-has-been-stolen-from-us

Steam AI: https://www.totallyhuman.io/blog/the-surprising-number-of-steam-games-that-use-genai

Valve and payment processors: https://www.gamingonlinux.com/2025/07/valve-gets-pressured-by-payment-processors-with-a-new-rule-for-game-devs-and-various-adult-games-removed/

Gabe Newell Interview: https://www.youtube.com/watch?time_continue=1&v=qbvWCKMpSHQ

Subnautica 2 update: https://www.gamesindustry.biz/former-unknown-worlds-leaderships-legal-complaint-alleges-pressure-tactics-by-krafton-inc-to-delay-subnautica-2-launch

Subnautica 2 leak: https://www.reddit.com/r/Subnautica_2/comments/1lwyorm/a_leak_from_a_credible_source_regarding_the

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Executive producers: Kiskaloo, Zaeith

Special thanks: John Dwyer,

Joshua Dotson,

MaiaNashira,

Nazgren, Arcthorin,

Lamer of Sweden

, Neme5i5,

Nicholas Lautner

, Remiehneppo,

Toioiz,

Tony Duran,

Valentine Judnich,

zoomsp

#Diablo4 #gaming #subnautica

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Video at Youtube: https://www.youtube.com/watch?v=QXfPdRYyWpI