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!

Following the flagging performance of Destiny 2 and Marathon woes, Sony has jettisoned embattled Bungie studio head Pete Parsons. They've also announced significant hikes on PS5 prices. Also: Another Subnautica 2 lawsuit, a BioShock shakeup, and Frost Giant studio head Tim Morten leads with transparency and accountability.

You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise!

TIME STAMPS

• [00:02:07] - PlayStation 5 Price Increases in the U.S.
• [00:05:25] - Unknown Worlds v Cleveland, McGuire, and Gill
• [00:14:33] - Circan Report on U.S. Video Game Spending for July 2025
• [00:19:22] - Investment Interlude
• [00:26:45] - Quick Hits
• [00:34:09] - Labor Report
• [00:50:42] - FAFO

SOURCES

• PlayStation 5 price changes in the U.S. | PlayStation Blog
• Unknown Worlds v Cleveland, McGuire, and Gill | The Court of Chancery of the State of Delaware
• Guy Who Tried To Fight Nintendo Piracy Lawsuit Without A Lawyer Will Now Pay $2 Million | Kotaku

INVESTMENT INTERLUDE

• Saudi Arabia's Qiddiya Acquires EVO Part-Owner RTS | Muhannad Aldawood on LinkedIn
• Atari Announces Strategic IP Agreement With Ubisoft To Revive Five Acclaimed Titles | Atari

LABOR REPORT

• Cloud Chamber lays off "unspecified" number of staff as Rod Fergusson is parachuted in to lead troubled BioShock 4 production | GamesIndustry
• Take-Two Guts 'BioShock' Studio After a Decade of Development | Bloomberg (Paywall)
• Frost Giant CEO Tim Morten says layoffs are possible after Stormgate underperforms | Game Developer
• Frost Giant CEO Tim Morten Reflects on Stormgate's Failure | Tim Morten on LinkedIn
• Dreamhaven is Going through Layoffs | Mike Morhaime on LinkedIn
• Crystal Dynamics Layoffs | Crystal Dynamics on LinkedIn
• Ubisoft is cutting jobs within its publishing team | Game Developer
• NetEase shuts down Rich Vogel-led T-Minus Zero Entertainment | Game Developer
• Hundreds of Diablo Game Developers Join Communications Workers of America | CWA

Krafton's response to the Unknown Worlds lawsuit hinges on one key element: the interpretation of the Equity Purchase Agreement. Also, lots of earnings, Roblox is under fire from the state of Louisiana, an update on the growing censorship of Steam and Itch.io, and more.

You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise!

TIME STAMPS

• [00:00:48] - Correction: Thunderful Share Price at Time of Atari Purchase
• [00:02:35] - Sony Q1 FY25 Earnings
• [00:05:24] - Paradox Q2 FY25 Earnings
• [00:07:26] - Take-Two Q1 FY26 Earnings
• [00:08:54] - Remedy Q2 FY25 Earnings
• [00:11:25] - Square Enix Q1 FY25 Earnings
• [00:16:06] - Sega Q1 FY26 Earnings
• [00:20:39] - Embracer Group Q1 FY25
• [00:23:39] - Krafton Responds to Subnautica Lawsuit
• [00:30:06] - Roblox's Content Moderation Failure Leads to Louisiana Lawsuit
• [00:45:13] - Valve Explains why PayPal is No Longer a Payment Option in Some Territories
• [00:50:30] - Quick Hits
• [00:56:25] - Labor Report

SOURCES

• FY2025 Q1 Earnings Announcement | Sony
• Interim report January – June 2025 | Paradox
• FIRST QUARTER FISCAL 2026 RESULTS | Take-Two
• Half-Year Financial Report | Remedy
• Results Briefing Session for the Three-Month Period Ended June 30, 2025 | Square Enix
• Q1 for the Fiscal Year Ending March 2026 Results Presentation | Sega
• Embracer Group publishes Interim Report Q1 | Embracer Group
• Defendant's Answer to Verified Complaint | Fortis Advisors v Krafton
• Louisiana Attorney General Liz Murrill files Child Protection lawsuit against popular game Roblox | Louisiana Office of the Attorney General
• State of Louisiana vs Roblox Corporation | Louisiana Office of the Attorney General
• Roblox Responds to Louisiana AG Lawsuit | Roblox
• Valve explain why using PayPal for Steam purchases isn't currently an option in a whole bunch of countries | RockPaperShotgun

LABOR REPORT

• Report: 2XKO and Marvel Snap co-dev Demiurge Studios is laying off staff | Game Developer
• Bithell Games has Undergone Layoffs | Bithell Games
• Open letter from the Arkane Studios union section to Microsoft's and its subsidiaries' management | STJV
• Blizzard's story and franchise development division votes to unionize | GamesIndustry

INT. POSH HOTEL SUITE - DAY

TENCENT: Hey, Sony. Can we make a Horizon game?

SONY: Nah. We good.

TENCENT: Oh okay. Bummer.

SONY: WHAT THE F—-

So yeah… Sony is suing Tencent for what it calls a "slavish clone" of Horizon: Zero Dawn. Bold move! Also: EA, Microsoft, Capcom earnings, an update on the Mastercard/Visa censorship of legal game content, and more.

You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise!

TIME STAMPS

• [00:00:30] - Some News From Us!
• [00:05:21] - An Update on the Conservative Assault on Steam and Itch.io
• [00:15:34] - EA Q1 FY26 Earnings
• [00:20:25] - Microsoft Q4 FY25 Earnings
• [00:30:00] - Capcom Q1 FY26 Earnings
• [00:35:48] - Sony Sues Tencent Over Horizon: Zero Dawn Clone
• [00:41:59] - Investment Interlude
• [00:50:23] - Quick Hits
• [00:50:44] - Labor Report

SOURCES

• Mastercard Denies Pressuring Steam To Censor 'NSFW' Games [Update: Valve Responds] | Kotaku
• Vile is Banned | DreadXP
• Freedom to Buy Games | GOG
• Electronic Arts Reports Q1 FY26 Results | EA
• Earnings Release FY25 Q4 | Microsoft
• Consolidated financial results for the 1st Quarter of FY2025 | Capcom
• Sony's PlayStation Sues Tencent Over Its 'Slavish Clone' of 'Horizon' Video Game Franchise | Variety
• Complaint for Copyright and Trademark Infringement | United States District Court, Northern District of California

INVESTMENT INTERLUDE

• Atari enters into an agreement to invest in Thunderful Group AB | Atari
• Puzzle & Dragons studio considers shareholder group request for a vote to dismiss its president | VGC
• Lyrical Media Launches Indie Video Game Publisher Led by UTA, Take Two Vet Blake Rochkind; Three Titles in Development | Variety

LABOR REPORT

• Supermassive Layoffs | Supermassive on LinkedIn
• Indie Publisher Firestoke Games is Shutting Down | Paul Farley on LinkedIn
• The studio behind Teenage Mutant Ninja Turtles: Mutants Unleashed brings in union after facing closure | GamesIndustry
• Raven Software Workers Secure First Contract at Microsoft | CODE-CWA

In 2021, Krafton splashed huge cash on Subnautica dev Unknown Worlds. Now, the publisher may find out that buyer's remorse isn't a reason for violating a contract.

Also…

Ubisoft Earnings

Circana Reports for May and June 2025

Sony takes a bite out of Bandai Namco

On this episode, we discussed a serious attack on artist freedom being perpetrated by payment processors Mastercard and Visa. This attack is motivated by an Australian Christofacist group called Collective Shout that, among other things, does not believe adults should have bodily autonomy.

If you would like your voice heard, here are some resources:

A compiled resource document by @voiddebris.bsky.social

Petitions

Change.org

ACLU

Mastercard

Phone (US): 1-800-627-8372

Phone (outside US): 1-636-722-7111

Online submission form

Visa

Phone (US): 1-800-847-2911

Non-US numbers

Online form

Some important tips:

Phone calls are more impactful than emails. Do not let support reps push you to email, where keywords can filter out your concerns.

Keep support reps on calls as long as possible. This creates meaningful and measurable dips in call center productivity that management WILL notice.

Call multiple times with the same case number. Call center KPIs include clearing tickets in as short a time and in one call. This is another metric that will grab leadership attention. The service impact should be sustained for at least a month says workforce management professional Elliot Wilson on Bluesky.

You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise!

TIME STAMPS

• [00:02:59] - Ubisoft Earnings
• [00:11:08] - Circana Reports on U.S. Video Game Spending for May and June 2025
• [00:22:28] - Unknown Worlds v Krafton
• [00:35:10] - Mastercard and Visa are Ramping Up Their Censorship (Steam, Itch.io)
• [00:43:54] - Investment Interlude
• [00:48:01] - Quick Hits
• [00:50:25] - Bonus Investment Interlude
• [01:02:16] - Labor Report

SOURCES

• Ubisoft Q1 FY26 Earnings | Ubisoft
• Ubisoft Names Co-CEOs of Spinoff | Variety
• KRAFTON ANNOUNCES GAMING INDUSTRY VETERAN STEVE PAPOUTSIS AS NEW CEO OF UNKNOWN WORLDS | Krafton
• Krafton Delays 'Subnautica 2' Game Ahead of $250 Million Payout | Bloomberg (Paywall)
• Fortis Advisors v. Krafton via Aftermath | Scribd (Nicole Carpenter)
• Steam cracks down on some sex games to appease payment processors | Ars Technica

INVESTMENT INTERLUDE

• Bandai Namco and Sony Sign Strategic Partnership | Bandai Namco
• Gamefound acquires Indiegogo | Gamefound
• 'Subnautica 2' Publisher Krafton Acquires 'Last Epoch' Developer Eleventh Hour Games for $96 Million | Variety

LABOR REPORT

• Tom Clancy, Star Trek: Bridge Crew Studio Ubisoft Red Storm Lays Off 19, Citing 'Global Cost-saving Efforts' | IGN
• Virtuos confirms it's laying off 270 workers across Asia and Europe | Game Developer
• Secret 6 Has Been Closed | Patricia Pérez Menéndez on LinkedIn
• Secret 6 Madrid workers call off strike after agreeing severance terms with Testronic | Game Developer
• Report: Wardogs developer Bulkhead is laying off workers | GamesIndustry
• Airship Interactive entered administration earlier this month | GamesIndustry
• Report: Wayfinder developer Airship Syndicate is laying off staff | Game Developer
• Dark Sky Studio Ganymede Games is Shutting Down | Jerry Prochazka on LinkedIn

HELP OUR GREG WITH HIS MASTERS DISSERTATION!

Our lead moderator and King of Game Showcases, Greg Alderton, is working on his masters dissertation. As part of that, he's conducting research on cozy spaces in games. We'd be delighted if you'd help him by participating in the research phase.

All you need to do is download a small file from Itch.io here, take a few minutes to experience the two spaces included, and fill out a short form here. Thank you for helping Greg!

Following strong financial performance in its gaming division, Microsoft is taking a machete to its work force and its future as a serious competitor. Is this the brand's Red Ring of Death? Also, Bungie runs from Marathon, Warner Bros. goes all-in on safe IP, and the labor report hurts even more than usual.

You can support Virtual Economy's growth via our Ko-Fi and also purchase Virtual Economy merchandise!

TIME STAMPS

• [00:03:59] - Sony Games & Network Services Update
• [00:16:09] - Marathon Delayed Indefinitely
• [00:27:51] - Sony Brings Four Games Back to 177 Countries
• [00:30:18] - Cleer Arc 3 Gaming Review
• [00:37:52] - Investment Interlude
• [00:42:27] - Quick Hits
• [00:59:46] - Labor Report

SOURCES

• Game & Network Services Segment | Sony
• Marathon Development Update | Bungie
• Sony removes regional restrictions on four of its biggest games on Steam | PC Gamer
• Tencent owns 15% of Helldivers 2 studio Arrowhead, it has emerged | VGC

INVESTMENT INTERLUDE

• Sensor Tower Acquires Playliner to Expand Live Ops Intelligence Across Mobile Gaming | Sensor Tower
• Warner Bros. Games Restructures Into Divisions Based on 'Game of Thrones,' Harry Potter, 'Mortal Kombat' and DC Universe | Variety

LABOR REPORT

• Microsoft Begins Deep Job Cuts Across Xbox Division | Bloomberg (Paywall)
• Microsoft to lay off as many as 9,000 employees in latest round | Seattle Times
• Lost Records and Jusant developer Don't Nod is laying off staff | Eurogamer
• Bloodlines 2 developer The Chinese Room has laid off employees, but Paradox says the game is still coming in October | PC Gamer
• Hypixel Studios has Canceled Hytale and Will Wind Down | Hypixel Studios on Twitter
• MindsEye Developer Build a Rocket Boy Begins Layoff Process Amid Disastrous Launch, Studio Sources Say | IGN
• MindsEye Dev's UK Workforce of Around 300 Receive At-Risk Emails as Former GTA Lead Leslie Benzies Finally Addresses Staff | IGN
• Cyan Worlds Has Gone Through Another Round of Layoffs | Cyan Worlds on Bluesky
• Studio Camelia has Closed | Studio Camelia on LinkedIn
• Star Wars: Hunters Publisher Shutters Studio Founded by Torchlight, Diablo Creator Before It Could Announce Its New Game | IGN
• People Can Fly Undergoes Layoffs | People Can Fly on LinkedIn
• Major layoffs at Playtika with up to 160 jobs cut on Best Fiends and Redecor teams | MobileGamer.biz
• Subway Surfers Blast developer Outplay Entertainment has laid off 21 workers | Game Developer
• RuneScape studio Jagex lays off an undisclosed number of 'non-player facing' staff | Game Developer
• Cult of the North Shutting Down | Adam Schaub on LinkedIn
• Report: Return to Moria developer Free Range Games lays off 80 people | Game Developer
• Sony is making layoffs at Days Gone developer Bend Studio | Game Developer
• French court convicts ex-Ubisoft bosses for workplace harassment | AFP
• Video Game Workers Reach Historic Tentative Contract Agreement with Microsoft | CWA