It's been a hard year, folks. As we say goodbye to 2023 and turn our attention to a (hopefully) brighter 2024, we're recapping recent gaming events, November's Circana report, and more.

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TIME STAMPS

• [00:02:17] - Circana Report on U.S. Video Game Spending for November 2023
• [00:09:11] - GameStop Earnings for Q3 2023
• [00:13:28] - What's Going on in China?
• [00:19:37] - Twitch: Closing Up Shop in S. Korea, Sexual Content Policy
• [00:25:10] - Investment Interlude
• [00:25:59] - Quick Hits
• [00:27:26] - Labor Report
• [00:35:45] - Our Feelings on Coverage of the Insomniac Hack (Discussion)
• [00:45:59] - PAX Unplugged (Discussion)
• [00:54:47] - The Game Awards (Discussion)
• [01:02:42] - Our Favorite Games This Year
• [01:13:48] - Listener Questions

SOURCES

• GameStop Discloses Third Quarter 2023 Results | GameStop
• Activision Blizzard to pay $47M in gender discrimination settlement | Axios
• Microsoft announces more Xbox leadership changes as Activision's Bobby Kotick departs | The Verge
• Updates on Twitch in Korea | Twitch
• Sexual Content Policy Update | Twitch
• Indie publisher Versus Evil has shut down | Game Developer
• Jukai Studio Has Shut Down | Jukai Studio (@jukaistudio) on Twitter
• Activision Blizzard to pay $47M in gender discrimination settlement | Axios
• Microsoft announces more Xbox leadership changes as Activision's Bobby Kotick departs | The Verge

INVESTMENT INTERLUDE

• Keywords acquires The Multiplayer Group, enhancing its Create division | Keywords

Embracer Group gorged itself during the pandemic when debt was cheap. Now, it's scrambling to lay off hundreds of people to "win." Also, Circana report for October, Epic wins against Google, and more.

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TIME STAMPS

• [00:04:03] - Embracer Group Q2 Earnings
• [00:20:32] - Starbreeze Q3 Earnings
• [00:24:59] - Epic wins in court against Google
• [00:27:27] - Circana U.S. Video Game Spending Report for October 2023
• [00:33:18] - Investment Interlude
• [00:45:08] - Quick Hits
• [01:11:01] - Labor Report

SOURCES

• EMBRACER GROUP PUBLISHES INTERIM REPORT Q2 | Embracer Group
• Embracer: Human cost of restructure is "significant" but "necessary" | GamesIndustry
• Starbreeze Q3 FY24 Earnings Report | Starbreeze
• Epic win: Jury decides Google has illegal monopoly in app store fight | The Verge
• Humble Games lays off "valued colleagues" as restructuring begins | Game Developer
• Digital Bros Group announces an organizational review, with an expected workforce reduction of approximately 30% | Digital Bros
• Kongregate, Digital Bros. cut jobs in a growing wave of video game industry layoffs | Polygon
• Phoenix Labs lays off 34 staff | GamesIndustry
• Trading Update and Litigation Settlement | TinyBuild
• F1 Developer Codemasters Suffers Round of Layoffs | Insider Gaming
• Embracer lays off 50 more employees and may soon close resurrected TimeSplitters studio Free Radical Design | PC Gamer
• TimeSplitters studio Free Radical Design closed today, staff say | Eurogamer
• Insurgency developer New World Interactive affected by layoffs | GamesIndustry
• League of Geeks lays off 50% of its staff - but does so with compassion | League of Geeks (@leagueofgeeks) on Twitter
• Rovio closes Studio Lumi | GamesIndustry
• TripleTopping is Closing | Astrid Refstrup (@AstridMie) on Twitter
• CD Projekt voluntarily recognizes Polish developer union | Game Developer
• QA staff at Xbox support dev Experis successfully vote to unionize | Game Developer

INVESTMENT INTERLUDE

• AONIC ACQUIRES NDREAMS FOR $110 MILLION | Ndreams
• Mobile publisher Nordcurrent acquires River End Games | Game Developer
• Call of Duty developer Infinity Ward opens new Texas studio | Game Developer
• Hearst Newspapers Acquires Puzzle Games Platform Puzzmo | Hearst
• ByteDance says to restructure Nuverse in retreat from gaming business | Reuters
• ReedPop seeks buyer for Eurogamer, GI, VG247, Rock Paper Shotgun and more | GamesIndustry

We're in the thick of earnings season, and it's hard to swallow positive financial news amid an avalanche of heartbreak labor stories. On this week's show: Sony EA, Nintendo, Take-Two, Remedy, Sega, and Square Enix earnings.

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

TIME STAMPS

• [00:02:35] - Sony Earnings for Q2 FY2023
• [00:08:50] - EA Earnings for Q2 FY2024
• [00:17:00] - Nintendo Earnings for Q2 FY2024
• [00:27:08] - Take-Two Earnings for Q2 FY2024
• [00:29:00] - Remedy Earnings for Q3 FY2023
• [00:31:02] - Sega Earnings for Q2 FY2024
• [00:34:32] - Square Enix Earnings for Q2 FY2024
• [00:39:25] - Remedy Update on Project Vanguard
• [00:42:57] - Investment Interlude
• [00:56:14] - Quick Hits
• [00:59:21] - Labor Report
• [01:14:05] - Listener Questions

SOURCES

• Q2 FY2023 Consolidated Financial Results | Sony
• Electronic Arts Reports Strong Q2 FY24 | EA
• Consolidated Results for the Six Months Ended September 30, 2023 | Nintendo
• IR Presentation for Fiscal Year Ending March 2024 | Nintendo
• Take-Two Q2 FY24 Earnings | Take-Two
• REMEDY ENTERTAINMENT PLC: Q3 2023 | Remedy
• Remedy Entertainment plans to reboot codename Vanguard to a premium game with a strong cooperative multiplayer component | Remedy
• Q2 for the Fiscal Year Ending March 2024 | Sega
• Results Briefing Session for the Six-Month Period Ended September 30, 2023 | Square Enix
• Sony's Bungie Game Unit Cut 8% of Staff After 'Destiny' Play Wilted | Bloomberg (Paywall)
• Embracer's implosion continues as Star Trek Online developer Cryptic Studios lays off employees | PC Gamer
• Motorsport Games to lay off up to 38 employees | GamesIndustry
• 100 Thieves to cut 20% of its workforce | GamesIndustry
• The layoffs continue: Ubisoft cuts 124 jobs worldwide, including nearly 100 in Canada | PC Gamer
• Worker co-op dev The Glory Society has shut down | Game Developer
• Unity is probably going to do layoffs | The Verge
• Wayfinder, Warframe publisher Digital Extremes cuts workers, divests from Wayfinder | Polygon
• Samurai Punk is ceasing development | Twitter
• Samurai Punk staff | Twitter
• Amazon Lays Off 180 Employees In Its Games Division | Aftermath

INVESTMENT INTERLUDE

• Global Gaming Report Q3 2023 | Drake Star
• Atari enters into an agreement to acquire Digital Eclipse | Atari
• System Era Acquired by Devolver | System Era
• Midwest Games secures $3m in funding | GamesIndustry
• Neowiz invests in Blank Game Studios | GamesIndustry

With Microsoft's Activision acquisition closed, the Xbox leadership team has reorganized in some unexpected ways. Also: Microsoft and Capcom earnings, more layoffs, Paradox says goodbye to Harebrained Schemes, Unity boots John Riccitiello, and we have the latest Circana report on U.S. Game spending.

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

TIME STAMPS

• [00:02:49] - Circana report on U.S. Video Game Spending for September 2023
• [00:17:47] - Unity gives John Riccitiello the boot
• [00:24:16] - Microsoft Q1 FY24 Earnings
• [00:36:51] - Capcom Q2 FY24 Earnings
• [00:42:31] - Investment Interlude
• [00:52:41] - Quick Hits
• [01:03:44] - Labor Report
• [01:12:25] - Let's Talk about the GaaSacre
• [01:20:08] - Listener Questions

SOURCES

• Unity Announces Leadership Transition | Unity
• "Fuck you, we're not paying": inside Unity's Runtime Fee fiasco | MobileGamer.biz
• Microsoft Q1 FY24 Earnings | Microsoft
• Consolidated financial results for the 2nd Quarter of FY2023 | Capcom
• Paradox says The Lamplighters League sales were 'a big disappointment,' confirms recent layoffs at developer Harebrained Schemes | PC Gamer
• Zen Studios reportedly cuts staff by 32 | GamesIndustry
• Embracer-owned Digic to lay off 35 employees | GamesIndustry
• Frontier to lay off unknown number of staff in organisational review | GamesInudstry
• Full extent of Team17 cuts threaten third of the company - sources | Eurogamer
• Virtuos Studios seemingly closes Calypte one year after opening | Game Developer
• Epic Games cuts almost half of Bandcamp pre-Songtradr sale | Game Developer
• PlayStation lays off staff at Visual Arts support dev | Game Developer

INVESTMENT INTERLUDE

• GameSquare To Acquire One of the Biggest Names in Gaming, FaZe Clan | GameSquare
• Xsolla Announces Acquisition Of Lightstream, Rainmaker And Api.Stream | Xsolla
• Fragbite to acquire Fall Damage | GamesIndustry
• Space Rock Games secures $900,000 in funding | GamesIndustry

The industry's labor situation is reaching a boiling point, as Epic Games sacrifices employees on the altar of its fight against Apple and Google. Also: Unity has burnt its goodwill to the ground, voice actors prepare to strike, a leadership shake-up at PlayStation, and Microsoft's purchase of Activision Blizzard now seems like a sure thing.

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

TIME STAMPS

• [00:00:31] - The State of the Industry
• [00:09:05] - Unity Update - An Attempt to Save Face
• [00:28:57] - Bye bye, Jim Ryan
• [00:30:03] - Epic Implements IARC Ratings for Fortnite Creative & more Parental Controls
• [00:35:59] - Investment Interlude
• [00:41:50] - Quick Hits
• [00:50:18] - Labor Report
• [01:18:27] - Listener Questions

SOURCES

• Introducing IARC Ratings in Fortnite, Paving the Way for a Multi-Game Ecosystem | Epic Games
• Epic Games Safety and Security Center | Epic Games
• Crystal Dynamics (Embracer) Layoffs | Crystal Dynamics (@crystaldynamics) on Twitter
• Embracer open to divesting studios, confirms more closures on the horizon | Game Developer
• Roblox cuts 30 on talent acquisition team as hiring slows | TechCrunch
• Blizzard lays off several Hearthstone developers after restructuring team | Game Developer
• Hyenas Cancelation and Layoffs at Creative Assembly | Creative Assembly (@CAGames) on Twitter
• Significant job losses likely at Worms publisher Team17 - sources | Eurogamer
• Last Of Us Studio Naughty Dog Is Cutting Developers | Kotaku
• Boomerang X Developer Dang is Shutting Down | Dang (@dangmakesgames) on Twitter
• CLOSING PUNY HUMAN | Puny Human
• Layoffs at Epic | Epic Games
• Five former Ubisoft executives arrested after sexual harassment investigation | GamesIndustry (via Libération)
• Terminated BioWare Employees Sue for Better Severance | Jon Renish (@jonrenish) on Twitter
• SAG-AFTRA Members Approve Video Game Strike Authorization Vote With 98.32% Yes Vote | SAG-AFTRA
• Nickelodeon game developer Workinman unanimously votes to unionize | Game Developer
• Over 100 Developers of Just Cause, Contraband at Avalanche Studios Have Unionized | IGN
• CD Projekt Red devs unionise after its third round of layoffs in three months | Eurogamer

INVESTMENT INTERLUDE

• VIRTUOS LAUNCHES GAME DEVELOPMENT STUDIO IN TOKYO | Virtuos
• Supercell acquires majority stake in Ultimate Studio | GamesIndustry
• XSOLLA ACQUIRES ACCELERATXR | XSOLLA
• New Microsoft/Activision deal addresses previous CMA concerns in cloud gaming | UK CMA

At PAX West, we spoke with Serenity Forge founder and CEO Z about the risks, challenges, and opportunities in the indie publishing world. With brutal macroeconomic headwinds and massive consolidation, the pressure is on for small publishers. Find out how Serenity Forge is weathering the storm.

Unity couldn't have made a bigger mess of its reputation in the game development community. Also: Microsoft's big leak, GameStop earnings, Circana report for August, SAG-AFTRA fires a shot at video game publishers, and more.

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

TIME STAMPS

• [00:02:45] - PAX West
• [00:25:15] - GameStop Earnings
• [00:27:50] - Unity's Foolish Moves
• [00:51:32] - Investment Interlude
• [01:18:59] - Quick Hits
• [01:25:50] - Labor Report
• [01:40:44] - Circana Report on U.S. Consumer Video Game Spending for August 2023
• [01:44:43] - Listener Questions
• [01:49:11] - FAFO

SOURCES

• GameStop Discloses Second Quarter 2023 Results | GameStop
• CHANGES TO UNITY PLANS AND PRICING (September 12, 2023) | Unity
• Volition Announces its Closure | Volition (@DSVolition) on Twitter
• Report: Embracer layoffs impact staff at MX vs ATV developer Rainbow Studios | Game Developer
• Imagendary Studios reportedly lays off majority of staff | GamesIndustry
• Gloria Victis Final Season | Gloria Victis on Steam
• Lego 2K Drive developer Visual Concepts hit with layoffs | Game Developer
• Immortals of Aveum studio lays off nearly half of staff weeks after release | Polygon
• Ascendant Studios CEO Confirms Layoffs | Bret Robbins (@BretRobbins) on Twitter
• Ubisoft is shutting down its London studio | Game Developer
• Ubisoft Montreal in Turmoil Amid What Developers are Calling Broken Promises | IGN
• SAG-AFTRA National Board Votes Unanimously to Send Interactive Media (Video Game) Strike Authorization Vote to Members | SAG-AFTRA

INVESTMENT INTERLUDE

• Sumo Group acquires mobile game dev studio Midoki | Sumo Group
• SOEDESCO® acquires development studio: Kyodai | Soedesco
• Atari acquires AtariAge | GamesIndustry
• Playtika Holding Corp. Enters Definitive Agreement to Acquire Innplay Labs | Playtika
• FaZe Clan is flaming out on Nasdaq as Chairman resigns | GamesBeat
• Humble Games interested in studio acquisitions and first-party development | Game Developer
• Carlyle weighs options for 'RuneScape' creator Jagex, sources say | Reuters

The Microsoft/Activision deal is still alive. And now, Ubisoft has been folded into the conversation with control of cloud streaming rights. Also: Earnings (Square Enix, Sony, Take-Two, Embracer Group), The July 2023 Circana Report on U.S. Video Game Spending, Xbox's new moderation system, and a listener question about the Xtra Small Small.

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

TIME STAMPS

• [00:01:36] - Square Enix Q1 FY24 Earnings

• [00:07:16] - Take-Two Q1 FY24 Earnings

• [00:14:51] - Sony Q1 FY24 Earnings

• [00:18:24] - Embracer Group Q1 FY24 Earnings

• [00:26:23] - Investment Interlude

• [00:41:24] - Quick Hits

• [00:46:17] - Labor Report

• [00:50:59] - Circana Report on U.S. Video Game Spending for July 2023

• [00:54:19] - Xbox's New Moderation System

• [00:56:46] - Listener Question

SOURCES

• Square Enix Q1 FY24 Earnings | Square Enix

• Sony Q1 FY24 Earnings | Sony

• Take-Two Q1 FY24 Earnings | Take-Two

• Embracer Group Q1 FY24 Earnings | Embracer Group

• Scoop: Saudi-funded Savvy Games was the mystery partner in collapsed $2B Embracer deal | Axios

• Embracer is Moving to Shutter Campfire Cabal | Campfire Cabal on LinkedIn

• Xbox Introduces Enforcement Strike System | Xbox Wire

• Xbox 360 Store and Xbox 360 Marketplace FAQ | Xbox Support

• An Update on the State of BioWare | BioWare

INVESTMENT INTERLUDE

• Telltale Acquires Flavourworks | Telltale

• Behaviour Interactive Acquires Award-Winning Codeglue | GamesPress

• Roleplay Community Update | Rockstar Games

• VIRTUOS EXPANDS GAME ENGINEERING CAPABILITIES WITH LAUNCH OF VIRTUOS LABS – PRAGUE | Virtuous

• Krafton commits $150 million to India following BGMI trial approval | TechCrunch

• Play Ventures raised at least $78M for third gaming venture fund | GamesBeat

• Microsoft and Activision Blizzard restructure proposed acquisition and notify restructured transaction to the UK's Competition and Markets Authority | Microsoft

• Microsoft submits new deal for review after CMA confirms original deal is blocked | UK CMA

• Activision Blizzard Games Coming To Ubisoft+ | Ubisoft

• Microsoft's Activision Blizzard merger approved in New Zealand | Game Developer

The Entertainment Software Ratings Board wants to use facial scanning to keep your kids from playing GTA and other adult-focused games. Also, it's earnings season, with Microsoft, Capcom, Sega, and EA kicking us off. We also cover two more instances of the dreaded "payoffs for layoffs," and a heap of listener questions!

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

TIME STAMPS

• [00:1:55] - Circana Report on U.S. Video Game Spending for June 2023
• [00:13:20] - Microsoft Q4 FY23 Earnings
• [00:19:43] - Capcom Q1 FY24 Earnings
• [00:23:40] - Sega Q1 FY24 Earnings
• [00:29:51] - EA Q1 FY24 Earnings
• [00:31:28] - Nintendo Q1 FY24 Earnings
• [00:35:55] - Investment Interlude
• [00:45:39] - Quick Hits
• [00:56:30] - Labor Report
• [01:02:41] - The ESRB Wants to Use Facial Scanning for Age Gating
• [01:13:20] - Listener Questions

SOURCES

• Microsoft Earnings Release FY23 Q4 | Microsoft
• Capcom Q1 FY24 Earnings | Capcom
• Capcom Makes Swordcanes Studio Co., Ltd. a Wholly-Owned Subsidiary Through Share Acquisition | Capcom
• Sega Q1 FY24 Earnings | Sega
• Electronic Arts Reports Strong Q1 FY24 Results | EA
• Nintendo Q1 FY24 Earnings | Nintendo
• Financial Results Explanatory Material | Nintendo
• Take Two Interactive execs' pay doubled this year | Axios
• Discord Lays Off 4% of Workforce | The Information
• 15 USC 6501: Definitions (house.gov)
• What Do We Do About the Biases in AI? (hbr.org) | Harvard Business Review
• If consoles can't crack China, their future is limited | GamesIndustry.biz

INVESTMENT INTERLUDE

• TECHLAND'S NEXT CHAPTER AND THE ROAD AHEAD | Techland
• MICROSOFT'S SUBMISSIONS ON MATERIAL CHANGES OF CIRCUMSTANCES | UK CMA

The FTC is down for the count after losing in court and seeing an emergency injunction denied. We discuss where things go from here as the UK CMA stands alone. Also, a bunch of new studios were announced, Bungie wins a big victory against a toxic troll, and Xbox works to make it harder for harassers online.

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

TIME STAMPS

• [00:02:52] - Pathfinder Open Gaming License
• [00:09:39] - New Xbox Voice Reporting Feature
• [00:13:14] - Xbox Live is Dead, Here Comes Game Pass Core
• [00:19:14] - Investment Interlude
• [00:32:21] - Activision Blizzard FTC
• [00:45:54] - Quick Hits
• [00:48:19] - Labor Report
• [00:57:12] - FAFO x2
• [01:06:59] - Listener Questions

SOURCES

• The creators of Pathfinder have released their own version of D&D's controversial OGL—and it could have a huge impact on all tabletop RPGs | PC Gamer
• paizo.com - Community | Paizo Blog
• Xbox Launches New Voice Reporting Feature | Xbox Wire
• Introducing Xbox Game Pass Core, Coming This September | Xbox Wire
• Sega of America workers win union vote | Polygon
• Pokémon Go creator Niantic accused of 'systemic sexual bias' in lawsuit | The Verge
• Splash Damage transitions to 4-day work weeks | Game Developer
• Yuji Naka gets a $1.2 million fine and a suspended prison sentence for insider trading | VGC
• Justice served: Destiny 2 harasser forced to pay Bungie nearly $500,000 in damages | Windows Central
• Bungie, Inc v Jesse James Comer - Default Judgment and Order | Superior Court of the State of Washington

INVESTMENT INTERLUDE

• CORSAIR TO ACQUIRE DROP ASSETS; FURTHER EXPAND PERIPHERALS BUSINESS | Corsair
• Cloud Imperium Group Acquires Turbulent | CIG
• Lightspeed Studios acquires Destruction AllStars dev Lucid Games | Game Developer
• Tencent invests in new triple-A studio from Playground Games co-founder | Eurogamer
• Meet Cliffhanger Games | EA
• Canada's Behaviour Interactive opens new UK studio | Behaviour
• People Can Fly Opens a Montreal Location | People Can Fly on LinkedIn
• Q-Games alumni form Denkiworks | GamesIndustry
• Microsoft wins FTC fight to buy Activision Blizzard | The Verge
• Preliminary Injunction Opinion | United States District Court, Northern District of California
• FTC is appealing ruling that cleared Microsoft to buy Activision Blizzard | The Verge
• Court denies FTC's last-ditch attempt to stop Microsoft buying Activision Blizzard | The Verge
• Microsoft to modify Activision Blizzard acquisition to address CMA concerns | GamesIndustry
• The Trade Desk, Inc. to Join the Nasdaq-100 Index Beginning July 17th, 2023 | NASDAQ
• Microsoft's Activision Blizzard merger approved in South Africa | Game Developer