Virtual Economy

We're breaking up with Xbox. It's not us, it's you. More layoffs, closed (and practically closed) studios, shuffling of IP, and fawning executives that are trying to convince you that everything's just ducky, when it's really f… you get the point.

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

TIME STAMPS

• [00:01:39] - PAX West / PAX Rising Recap
• [00:17:07] - Xbox Continues its Catastrophic Downfall
• [00:33:54] - Investment Interlude
• [00:41:58] - Quick Hits
• [00:47:14] - Labor Report
• [00:58:13] - Indie Game of the Episode

SOURCES

• Continuing Our Reset | Xbox
• Age of Empires studio World's Edge reportedly lost "nearly half" of its staff during yesterday's Xbox cuts and move to Activision | Eurogamer
• State Of Decay 3 Studio Lays Off A 'Significant' Number Of Developers But Says It Won't Impact The Game | Kotaku
• Halo Studios Former Cinematic Director Promoted and Laid Off in Same Week | Josh Daniels
• Microsoft CEO says Xbox is simply 'streamlining' after cutting over 5,750 jobs in three years | Game Developer

INVESTMENT INTERLUDE

• Nexus Mods is acquiring database and analytics site SteamDB | Game Developer
• Trophy Games acquires Airport Simulator: First Class developer Playrion from Paradox Interactive | GamesIndustry
• Bohemia Interactive acquires minority stake in Everwind developer Enjoy Studio | Game Developer
• Nex Raises Over $150 Million to Take Nex Playground Business Global | Nex

LABOR REPORT

• The Studio Behind MindsEye Is Closing Following Latest Round Of Layoffs | Kotaku
• Sega-owned Rovio is shutting down its Copenhagen studio | Game Developer
• Report: FuturLab lays off devs without informing team leads or managers | Game Developer
• Life is Strange studio Don't Nod says it may have to lay off 90 staff, warns it may not last beyond January | VGC
• French publisher Dear Villagers confirms layoffs | Game Developer
• Polyarc has closed | Polyarc on LinkedIn
• Layoffs at KO-OP | KO-OP on Bluesky
• Heart Machine Loses Publisher Funding | Alx Preston on LinkedIn
• After Years Of Company Stalling, Blizzard Workers Win Mega-Contract That Applies To All Unionized Teams | Aftermath

We've been head-down doing developer things (more on that very soon)! That makes this quite the episode. Earnings! Circana! EA is now privately held! Microsoft is biffing it! Roblox is screwed! And much, much, much more!

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

TIME STAMPS

• [00:03:36] - Circana Report on U.S. Video Game Spending for July 2026
• [00:17:45] - Microsoft Q4 FY26 Earnings, Console Price Hikes
• [00:32:02] - Sony Q1 FY27 Earnings
• [00:39:25] - Nintendo Q1 FY27 Earnings
• [00:47:34] - Capcom Q1 FY27 Earnings
• [00:52:57] - Sega Q1 FY27 Earnings
• [00:59:00] - Square Enix Q1 FY27 Earnings
• [01:09:50] - Take-Two Q1 FY27 Earnings
• [01:14:35] - Remedy Entertainment Q2 FY26 Earnings
• [01:19:40] - Investment Interlude
• [01:44:53] - Quick Hits
• [01:51:07] - Labor Report
• [02:11:37] - Indie Games of the Week

SOURCES

• Earnings Release FY26 Q4 | Microsoft
• Xbox UK and Europe console price hikes revealed - and it's even worse than we expected | Eurogamer
• Q1 FY2026 Consolidated Financial Results | Sony
• Consolidated Results for the Three Months Ended June 30, 2025 and 2026 | Nintendo
• Consolidated financial results for the 1st Quarter of FY2026 | Capcom
• Consolidated Financial Results for the Three Months Ended June 30, 2026 (Japanese GAAP) | Sega
• SQUARE ENIX HOLDINGS CO., LTD. ANNOUNCES FINANCIAL RESULTS FOR THE THREE-MONTH PERIOD ENDED JUNE 30, 2026 | Square Enix
• Remedy Entertainment Plc: Half-Year Financial Report January–June 2026: CONTROL Resonant set to launch on September 24th | Remedy
• Take-Two Interactive Software, Inc. Reports Results for Fiscal First Quarter 2027 | Take-Two

INVESTMENT INTERLUDE

• EA Announces Completion of Acquisition by PIF, Silver Lake, and Affinity Partners | EA
• Judge sets March 2027 trial on Paramount-Warner Bros deal | Reuters
• Tripledot Studios acquires Supersonic from Unity for $40m | GamesIndustry
• Secret Mode opens new Sheffield studio to support internal titles | GamesIndustry
• Deus Ex and Dishonored designer Harvey Smith has a new studio making immersive sims | Engadget
• Devolver wants to delist because indie publishing is not 'compatible' with public trading | Game Developer
• Epic Games sells ArtStation and Sketchfab to KitBash | Game Developer
• Roblox shares plummet by 70% after the company reports persistent decline in player numbers, and of course the solution involves AI | PC Gamer

LABOR REPORT

• Double Fine Laid off 23 People | Double Fine on Bluesky
• Bethesda layoffs include the artist responsible for designing Skyrim's khajiit and argonians, who had been at the company for 27 years | PC Gamer
• Candy Crush maker King has declined staff's collective bargaining agreement | Game Developer
• BREAKING: Netflix to shut down two more game studios | Game File
• Report: Crossfire dev That's No Moon lays off 14 staff | Game Developer
• Witcher multiplayer spin-off Project Sirius hit by fresh layoffs | GamesIndustry
• The studio behind Blumhouse-published horror game Crisol: Theater of Idols has reportedly shut down | VGC
• Court orders Midgar Studio to liquidate after failing to secure a buyer | GamesIndustry
• Report: FIFA World Cup developer Refactor Games shuttered by Delphi Interactive | Game Developer
• The Ambitious Open-World Cyberpunk Action Game Troy Baker Was Working On Gets Hit With Mass Layoff | Kotaku
• Studio founded by former Star Wars: Galaxy of Heroes GM lays off staff | Game Developer
• The Alters and Frostpunk developer 11 Bit Studios is laying off 20 employees | Game Developer

INDIE GAMES OF THE WEEK

• Manda - The Incident at Galley House, Developed by William Rous and Evil Trout
• Mike - Rogue Eclipse, Developed by HUSKRAFTS

Joining us on this episode is friend of the show Mat Piscatella, Executive Director and Video Game Industry Adviser at Circana. Our discussion includes the state of the industry, the component crisis and hardware costs, first party's changing strategy to focus on the biggest spenders, and just what the heck is going on at Xbox and PlayStation. Despite the worrying state of affairs, we also discuss our hopes for the future. Games will always be an art form, and as long as people are playing, artists will continue to pour their hearts into their craft.

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

Since 2022, the industry has slid into chaos and disarray, with developers and players abandoned by platform holders and publishers. Now, we've reached a tipping point, and only we can rescue ourselves. We'll discuss Microsoft's self-inflicted destruction, Sony's anti-preservation attacks, and the ESA's assault on consumers. Also: Steam Machine pricing, Krafton cowed, Ubisoft makes a catastrophic leadership hire amidst layoffs, and Ryan Cohen's toilet thoughts become part of government record.

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

TIME STAMPS

• [00:04:22] - Industry Executives are Failing Us. Where Do We Go From Here? (Discussion)
• [00:33:24] - The ESA Makes Wild Statements It Tries to Walk Back
• [00:47:07] - Circana Report on U.S. Video Game Spending for May 2026
• [00:51:58] - Steam Machine Pricing Details
• [00:53:17] - Investment Interlude
• [01:01:14] - BREAKING NEWS (Microsoft)
• [01:08:11] - Quick Hits
• [01:12:14] - Labor Report
• [01:38:57] - FAFO

SOURCES

• Next 100 Days: Xbox Reset
• Xbox Is Planning To Shutter Peabody-Award-Winning South Of Midnight Studio Compulsion Games | Kotaku
• Xbox Game Studios boss Craig Duncan steps down | The Game Business
• Updated Xbox Console Prices | Xbox
• Bungie Layoffs | Bungie on Bluesky
• An Update from PlayStation Studios | PlayStation
• An update on PlayStation Store for PS3 and PS Vita | PlayStation Blog
• Physical disc production ending in January 2028 for new games releasing on PlayStation consoles | PlayStation Blog
• The ESA quietly starts walking back baffling statements about private servers being 'illegal', though it's still tutting and wagging its finger | PC Gamer
• Video Game History Foundation Statement on PlayStation Ending Physical Media | VGHF on Bluesky
• Steam Machine Pricing Details Emerge | Steam

INVESTMENT INTERLUDE

• GameStop and eBay Tensions Rise After Key Shareholder Vote Fails | Yahoo Finance

LABOR REPORT

• Ubisoft eliminates 93 roles in San Francisco | Game Developer
• Ubisoft Barcelona staff go on strike over 51 staff being laid off
• Ubisoft appoints former 2K and Amazon exec Christoph Hartmann to lead Creative House 2, overseeing Splinter Cell, The Division and Ghost Recon | GamesIndustry
• Weeks After Launching Luna Abyss, Its Entire Development Team At Kwalee Labs Has Been Laid Off | Game Informer
• Kabam consolidating LA office and making layoffs | Game Developer
• OtherSide Entertainment lays off 17 staff following game cancellation | Game Developer
• OtherSide Entertainment lays off 18 from Thick as Thieves team | Game Developer
• Enginefall developer Red Rover Interactive is making layoffs | Game Developer
• The Studio Behind A 2025 Xbox Showcase Surprise Just Went Bankrupt | Kotaku
• VR dev Combat Waffle Studios lays off staff | Game Developer
• Obsidian sued in class action lawsuit over alleged "systematic pattern of wage and hour violations" | GamesIndustry
• Magic: The Gathering Arena developers have successfully unionized | Game Developer

Between GameStop and Ryan Cohen's clownery and new Xbox leadership's 100-day death march, it's another grim moment for the game industry. Former OpenAI head (now Xbox CEO) Asha Sharma laments the hardware crisis caused by… AI. We're all trying to find the guy that did this, after all.

Look… Sharma is no doubt a sin eater, but as she perches herself on the glass cliff, how many people will suffer? Also: Ubisoft attempts to embargo news of studio closures and layoffs, Destiny 2 rides into the sunset, and… it's earnings time, so we get to talk about why profits don't save jobs.

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

TIME STAMPS

• [00:10:24] - Circana Report on U.S. Video Game Spending for April 2026
• [00:21:33] - Sony FY2025 Consolidated Financial Results
• [00:27:34] - Sega Consolidated Financial Results for FY2025-26
• [00:31:20] - Nintendo Consolidated Financial Results for FY2025-26
• [00:39:02] - Nintendo's Ongoing Patent Lawsuit Hits Another Snag
• [00:42:17] - Square Enix Consolidated Financial Results for FY2025-26
• [00:45:37] - Capcom Consolidated Financial Results for FY2025-26
• [00:51:01] - Embracer Group Financial Results for Q4 and Full Year FY2025-26
• [00:53:21] - Take Two Financial Results for Q4 and Full Year FY2025-26
• [01:05:52] - Investment Interlude
• [01:16:21] - Quick Hits
• [01:35:24] - Labor Report

SOURCES

• FY2025 Consolidated Financial Results | Sony
• Sony raising prices on PS Plus | PlayStation on Twitter
• Sony Is Being Sued For Allegedly Retaining 'Substantial Windfall' Generated By 'Illegal' Tariffs | Kotaku
• Consolidated Results for the Years Ended March 31, 2025 and 2026 | Nintendo
• Notice Regarding Price Revisions for Nintendo Products and Services | Nintendo
• Nintendo's Ongoing Pokémon Patent Lawsuit Takes Another Hit | Kotaku
• Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 | Sega
• Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 | Square Enix
• Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 | Capcom
• Embracer Group publishes Interim Report Q4 | Embracer Group
• Opinion: Lars Wingefors is out of his mind | Game Developer
• Take-Two Interactive Software, Inc. Reports Results for Fourth Quarter and Fiscal Year 2026 | Take-Two

INVESTMENT INTERLUDE

• eBay Rejects Unsolicited Proposal from GameStop | eBay
• GameStop increases stake in eBay to more than 6% | Reuters
• Sensor Tower acquires AppMagic | GamesIndustry
• Tekken director Katsuhiro Harada is back, but this time at his own studio backed by old fighting game rival SNK | Eurogamer
• Indika dev Odd Meter raises $5m to fund next project | GamesIndustry

LABOR REPORT

• Xbox Plans Significant Layoffs as It Transforms Under New CEO | Bloomberg (Paywall)
• Bungie Plans Layoffs After Ending 'Destiny 2' Development | Bloomberg (Paywall)
• 2K lays off staff working on free-to-play shooter Project Ethos, while hinting at "new direction and focus" | GamesIndustry
• Report: WWE 2K26 dev Visual Concepts is laying off staff | Game Developer
• Last Flag studio lays off staff as game from Imagine Dragons brothers misses targets | GamesBeat
• MercurySteam "initiates a workforce adjustment process" | GamesIndustry
• Alliance Studios to close after 7 years of creating branded experiences within Fortnite | GamesBeat
• Team17 has laid off members of its marketing and communications department | Game Developer
• Merge Mansion dev Metacore lays off 159 employees, closes studios in Germany and Sweden | GamesIndustry
• Embracer-owned VR developer Vertigo Games closes Amsterdam studio | Game Developer
• Ubisoft is shutting down its Winnipeg studio | Mobile Syrup
• Ubisoft closing Winnipeg and Belgrade studios and making further layoffs | Game Developer
• Pokémon Go Scans Quietly Trained the Navigation Tech Now Headed Into Military Drones | Drone XL
• Double Fine is the latest team at Microsoft to unionize | PC Gamer

Ryan Cohen was only offered store credit as trade-in value for his time as GameStop CEO, so he's trying to buy eBay in one of the most foolish business moves we've ever seen. Also: Circana Report on U.S. Video Game Spending for March 2026, Microsoft, EA, Remedy, Earnings, the latest labor happenings, and Pearl Abyss dumps CCP for half of what it paid for it. Half Cash, Half Stock.

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

TIME STAMPS

• [00:01:41] - Circana Report on U.S. Video Game Spending for March
• [00:15:42] - Microsoft Q3 FY26 Earnings,, and
• [00:24:01] - Xbox Leadership Shakeup
• [00:33:14] - Former Art Director at Halo Studios Alleges Unlawful Conduct and Harassment
• [00:39:03] - Games Sue Nintendo to Recapture Tariff Fees & U.S. Patent Office Revokes Nintendo Patent
• [00:41:40] - Electronic Arts Earnings for Q4 FY26 and Full Year FY26
• [00:44:45] - Remedy Earnings for Q1 FY26
• [00:48:45] - Investment Interlude Headline Story: GameStop's Ryan Cohen Makes Unhinged Offer for eBay (and Bombs CNBC Interview)
• [01:04:05] - Investment Interlude
• [01:08:47] - Quick Hits
• [01:29:00] - Labor Report

SOURCES

• Microsoft Q3 FY26 Earnings | Microsoft
• Former Halo Art Director Accuses Microsoft of Harassment (Part 1) | Glenn Israel on LinkedIn
• Former Halo Art Director Accuses Microsoft of Harassment (Part 2) | Glenn Israel on LinkedIn
• Electronic Arts Reports Q4 and FY26 Results | EA
• Gamers Sue Nintendo To Get Tariff Money Back | Aftermath
• US patent office revokes Nintendo's patent on summoning characters to make them battle | VGC

INVESTMENT INTERLUDE

• GameStop Proposes to Acquire eBay at $125.00 Per Share | GameStop
• Watch CNBC's full interview with GameStop CEO Ryan Cohen | CNBC
• Warner Bros. shareholders "overwhelmingly" back Paramount's $111bn acquisition | GamesIndustry
• Shift Up has acquired Resident Evil creator Shinji Mikami's new studio | Game Developer
• Sony Interactive Entertainment Acquires Cinemersive Labs | Sony
• Atari acquires emulation studio Implicit Conversions | Game Developer
• Pearl Abyss sells CCP back to its CEO for less than half what it paid, plus $20 million in crypto | GamesIndustry

LABOR REPORT

• Sony shuts down Dark Outlaw Games and downsizes mobile games development as PlayStation continues to rethink plans | Eurogamer
• Wanderstop Developer Ivy Road is Shutting Down | Ivy Road
• Seeker Entertainment is Pausing Production, Furloughing Team | Seeker Entertainment
• Four Nacon subsidiaries file for insolvency | GamesIndustry
• GreedFall: The Dying World studio Spiders is reportedly closing its doors after parent company Nacon failed to find a buyer | Eurogamer
• Embracer Lays off 124 at Eidos-Montreal | Eidos-Montreal on LinkedIn
• EXCLUSIVE: Eidos Montreal Cancels 7+ Year In-Development Title That Cost Hundreds of Millions | Insider Gaming
• VR developer Polyarc Games facing layoffs, unspecified number of employees affected | GamesIndustry
• MechWarrior studio Piranha Games lays off 30% of its employees | PC Gamer
• Iron Galaxy lays off more people, says it still had too many employees even after 2025's 'last resort' cuts | PC Gamer
• Dead by Daylight studio Behaviour Interactive confirms layoffs | Game Developer
• Neill Blomkamp's blockchain studio Gunzilla Games hasn't paid some staff 'for many months', employees allege | VGC
• Gunzilla CEO Denies Claims Of Not Paying Staff, Rants About 'Haters,' And Brags About Crunch
• MindsEye studio faces new legal action over employee surveillance software that workers' union alleges was 'recording individuals in their homes and without their consent' | PC Gamer
• MindsEye Studio Hit With More Mass Layoffs Just As It Was Promising A Turnaround | Kotaku
• Paste Ends The Games Coverage That Gave So Many Writers Their Start | Aftermath
• Ubisoft Settles With Developers Who Were Laid Off After Unionizing | Kotaku
• Announcing United Wizards of the Coast - CWA! | CWA

With Epic laying off 1,000 people, the game industry job market has gone from "extremely chilly" to "nearing absolute zero." Also: a recap of GDC's challenged year, Circana Report on U.S spending for February 2026, some interesting new investments, NetEase divestments, and a heckin' FAFO.

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

TIME STAMPS

• [00:00:50] - GDC 2026 Recap
• [00:25:51] - Circana Report on US Video Game Spending for February 2026
• [00:35:02] - Nintendo Sues US Government Over Tariffs
• [00:36:55] - Pokemon Company v. US Government
• [00:38:24] - Update on the Intrepid Studios Implosion
• [00:45:02] - Investment Interlude
• [01:05:45] - Quick Hits
• [01:12:42] - Labor Report
• [01:39:27] - FAFO Award

SOURCES

• Nintendo Suing U.S. Government Over Tariffs | Aftermath
• Pokémon rebukes White House's use of its IP in a social media post | NBC News
• MMO Ashes of Creation spirals into a legal dumpster fire, as investor claims creative director Steven Sharif siphoned millions away from the company while it was drowning in debt | PC Gamer
• CEO Behind Kickstarter MMO That Ran Out Of Money Breaks His Silence And Claims First Legal Victory | Kotaku
• Krafton loses lawsuit, is ordered to reinstate ousted Unknown Worlds CEO | Game Developer
• Unknown Worlds co-founders' lawyers accuse Krafton of "intentionally leaking" Subnautica 2 release date | GamesIndustry

INVESTMENT INTERLUDE

• Netflix Declines to Raise Offer for Warner Bros. | Netflix
• Netflix boss says Paramount acquisition of Warner Bros will result in "cuts in excess of $16 billion" within "18 months or so" | Games Industry
• Warner Bros Montréal reportedly hit with staff cuts | GamesIndustry
• Pacific Drive developer Ironwood Studios raises $4 million in seed funding | Game Developer
• Good Games Group Launches New Publishing Label Balor Games, Following Acquisition of Humble Games and Firestoke Catalogs | Games Press
• Velan Studios expands into Canada to build 'breakthrough games' | Game Developer
• NCsoft acquires 70% stake in mobile developer JustPlay | GamesIndustry
• BEHAVIOUR INTERACTIVE PARTNERS WITH THE FUN PIMPS, CREATORS OF 7 DAYS TO DIE | Behaviour Interactive
• Saudi Crown Prince Mohammed Bin Salman's EGDC firm has acquired 5% of Capcom | VGC
• Savvy Games Group to acquire Moonton Games for $6 billion | Game Developer
• Evo is dead': Major fighting game tournament is now wholly owned by Saudi megaproject Qiddiya, promises 'traditions, values, and identity will remain unchanged' | PC Gamer
• Yet another NetEase studio is going independent | Game Developer
• Nagoshi's Gang of Dragon May Never Come Out After NetEase Cut Funding When It Realized an Extra $44M Was Needed to Finish the Game
• Amazon abandons upcoming racing game from former Forza devs, as its departure from triple-A publishing continues | Eurogamer

LABOR REPORT

• Today's layoffs | Epic Games
• Ubisoft Toronto lays off 40 employees, Splinter Cell remake still in development | Mobile Syrup
• Ubisoft ends game development at Red Storm and lays off 105 workers | Game Developer
• skate.'s Next Chapter - An Update from Full Circle | Full Circle (EA)
• Battlefield developers laid off by EA months after Battlefield 6 'shatters records' | Game Developer
• Riot Games confirms layoffs within publishing division | Game Developer
• Riot Games lays off roughly 80 employees from 2XKO team | Game Developer
• Report: NetEase is cutting jobs at internal studio Spliced Inc | Game Developer
• Den of Wolves studio 10 Chambers announces 'significant restructuring' and layoffs, 'including several of the studio's co-founders' | PC Gamer
• Highguard Studio Wildlight Lays Off Most Staff | Alex Graner on LinkedIn
• Highguard In Trouble After Most Of The Studio Laid Off Just Weeks After Launch | Kotaku
• Tencent's TiMi Studio Group reportedly funded Highguard dev Wildlight Entertainment | GamesIndustry via GameFile
• Halfbrick Studios is cutting jobs in Australia | Game Developer
• Killing Floor dev Tripwire Interactive lays off 23 employees | Games industry
• G.I. Joe Snake Eyes game not cancelled following reported Atomic Arcade studio closure, but its ultimate fate remains unclear | Eurogamer
• XCOM designer Jake Solomon announces surprise closure of his studio alongside a first look at its canceled life sim, 'the game we poured our hearts into' | PC Gamer
• Build a Rocket Boy confirms more layoffs amid further claims of "organized espionage and corporate sabotage" | Games Industry
• Until Dawn remake dev Ballistic Moon has closed | GamesIndustry

This was supposed to be a show just about earnings. All we wanted to do was cover the earnings… but Sony closed Bluepoint, Nintendo is releasing $20 Pokemon ROMs, and Microsoft appears to have ousted Phil Spencer and Sarah Bond. Every first party is stepping on rakes. Get your coffee… this is gonna be a thing.

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

TIME STAMPS

• [00:01:01] - Circana Report on US Video Game Spending for January 2026
• [00:06:51] - Microsoft Earnings Report for Q2 FY2026
• [00:16:39] - Sony Earnings Report for Q3 FY2026
• [00:25:46] - Nintendo Earnings Report for Consolidated 9 Months FY2026
• [00:29:55] - Remedy Earnings Report for Q4 and Full Year 2025
• [00:34:04] - EA Earnings Report for Q3 FY2026
• [00:35:25] - Paradox Earnings Report for Q4 and Full Year 2025
• [00:41:40] - Capcom Earnings Report for Consolidated 9 Months FY2026
• [00:48:30] - Take Two Earnings Report for Q3 FY2026
• [00:51:10] - Sega Earnings Report for Consolidated 9 Months FY2026
• [00:55:20] - Square Enix Earnings Report for Consolidated 9 Months FY2026
• [00:59:30] - Embracer Earnings Report for Q3 FY2026
• [01:01:15] - French Publisher Nacon Files for Insolvency

SOURCES

• Earnings Release FY26 Q2 | Microsoft
• Q3 FY2025 Consolidated Financial Results | Sony
• Sony Shuts Down Video-Game Studio Bluepoint | Bloomberg (Paywall)
• Consolidated Results for the Nine Months Ended December 31, 2024 and 2025 | Nintendo
• Financial Statements Release - January - December 2025 | Remedy
• Jean-Charles Gaudechon appointed as the CEO of Remedy | Remedy
• Electronic Arts Reports Q3 FY26 Earnings | EA
• Year-end report January – December 2025 | Paradox
• Consolidated financial results for the 3rd Quarter of FY2025 | Capcom
• Take-Two Interactive Software, Inc. Reports Results for Fiscal Third Quarter 2026 | Take-Two
• Consolidated Financial Results for the Nine Months Ended December 31, 2025 | Sega
• Consolidated Financial Results for the Nine-Month Period Ended December 31, 2025 | Square Enix
• Embracer Group publishes Interim Report Q3 | Embracer Group
• NACON ANNOUNCES THAT IT HAS TODAY FILED FOR INSOLVENCY* AND IS REQUESTING THE INITIATION OF JUDICIAL REORGANISATION PROCEEDINGS | Nacon

Ubisoft employees are prepared to strike over a recent return-to-office mandate and extreme cost-cutting. Also: Circana Report on U.S. Video Game Spending for December 2025 and full year 2025, That's No Moon at odds with former founder, Amazon Games suffers another blow, and Ashes of Creation dev Intrepid implodes.

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

TIME STAMPS

• [00:01:04] - Circana Report on U.S. Video Game Spending for December 2025 and Full-Year 2025
• [00:12:00] - That's No Moon Co-Founder Causes $1M Problem
• [00:21:09] - Valve Faces Down Another Class Action Suit
• [00:29:41] - Ubisoft in Disarray
• [00:52:38] - Investment Interlude
• [00:57:23] - Quick Hits
• [01:02:13] - Labor Report

SOURCES

• That's No Moon Ex-CEO Hijacked Domain And Caused A $1M Problem, Cofounders Say In Lawsuit | Aftermath
• Valve Fails To Get $900m Class Action Lawsuit Over Pricing Thrown Out | Kotaku
• UBISOFT ANNOUNCES A MAJOR ORGANIZATIONAL, OPERATIONAL AND PORTFOLIO RESET TO RECLAIM CREATIVE LEADERSHIP AND RESTORE SUSTAINABLE GROWTH | Ubisoft
• Ubisoft Employee Claims He's Placed on Unpaid Suspension for Criticising Return-to-Office Policy | Insider Gaming
• Ubisoft Fires Team Lead For Criticising Stupid Return-To-Office Mandate | Aftermath
• Ex-Assassin's Creed boss Marc-Alexis Côté sues Ubisoft after his surprise and "disguised dismissal" | Eurogamer
• We are shutting it down:' Ubisoft unions call for international strike | Game Developer

INVESTMENT INTERLUDE

• Industry networking platform MeetToMatch acquired by 1SP Agency | GamesIndustry
• Indie publisher Pixel Doors launches with a 'developer-first' mindset | Game Developer

LABOR REPORT

• Update on our organization | Amazon
• Christoph Hartmann Out at Amazon | Jason Schreier on Bluesky
• Report: ProbablyMonsters lays off devs while unveiling Nazi hunting game | Game Developer
• Wildgate maker Moonshot laying off unspecified number of staff | GamesIndustry
• Update: Payday developer Starbreeze pushes ahead with 'new wave' of layoffs | Game Developer
• Report: NetEase Games is cutting jobs in Montreal | Game Developer
• Studio that developed the infamous Mighty No.9 has shut down for good | Eurogamer
• Anime action RPG studio Pahdo Labs shuts down despite accruing $17.5M in funding: 'We believed making a demo of a familiar but new game would be our best shot' | PCGamer
• Tencent subsidiary Sumo Digital is making layoffs | Game Developer
• MMORPG Ashes of Creation Suddenly Implodes 52 Days After Steam Early Access Launch | WCCFTech
• Ashes Of Creation Dev Details $3.2 Million Kickstarter Studio's Shocking Collapse: 'None Of Us Are Receiving Our Final Paychecks' | Kotaku
• Blizzard QA Workers' Newly Ratified Union Contract Locks In Pay Increases, Better Benefits | Aftermath

2026 is putting us through our paces right out of the gate. We're hanging onto hope, but layoffs, consolidation, and private equity loom over us like a shadow. On this episode: an update on Paramount's desperate fight for Warner Bros. Discovery, Saudi Arabia moves video game holdings, and VR's challenges get much larger.

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

TIME STAMPS

• [00:02:35] - A conversation about hardware prices
• [00:10:16] - Paramount sues Warner Bros for Netflix deal details
• [00:15:39] - Investment Interlude
• [00:24:13] - Quick Hits
• [00:28:07] - Labor Report