Virtual Economy Michael Futter and Amanda Farough

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.
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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!

Sony dug a giant hole and dumped all the Helldivers 2 goodwill into the pit (while cutting off 177 countries). Microsoft lit itself on fire and burned player sentiment to the ground. Good times. Also: Take-Two layoffs target a BAFTA winner, Unity has a new CEO with a massive compensation package, the Circana report for March, and earnings, earnings, earnings.
You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise!
TIME STAMPS
[00:03:56] - Unity’s New CEO  [00:13:42] - Circana Report on U.S. Video Game Spending for March 2024 [00:25:08] - Investment Interlude [00:33:51] - Quick Hits [00:40:46] - Labor Report [01:24:21] - Nintendo Q4 FY24 Earnings [01:26:54] - Remedy Q1 FY24 Earnings [01:29:51] - Capcom Q4 FY24 Earnings [01:35:38] - EA Q4 FY24 Earnings [01:42:44] - FAFO Awards (Razer, PlayStation) SOURCES
Unity Appoints Matthew Bromberg as New CEO | Business Wire Belka Games lays off 20% of workforce as it becomes "more critical" of future titles | PocketGamer Keoken Interactive Shuts Down (Temporarily, but fully) | Keoken Interactive on Facebook Paladin Studios is Shutting Down | Paladin Studios on LinkedIn Lightforge is Laying Off Staff and Pausing Development On Project O.R.C.S. | Matt Shembari on LinkedIn Prytania Media has Closed the Third of its Four Studios | Dawon Entertainment on LinkedIn Take-Two reportedly shuts down Roll7 and Intercept Games, Private Division suffers layoffs | GamesIndustry Microsoft Closes Redfall Developer Arkane Austin, HiFi Rush Developer Tango Gameworks, and More in Devastating Cuts at Bethesda | IGN Dinga Bakaba Shares Thoughts on Microsoft Studio Closures | Dinga Bakaba (@DBakaba) on Twitter Microsoft’s Xbox Is Planning More Cuts After Studio Closings | Bloomberg (Paywall) Inside Microsoft’s Xbox turmoil | The Verge Microsoft says it needs games like Hi-Fi Rush the day after killing its studio | The Verge Workers seek to alter the balance of power in Canadian video game industry | Polygon Razer, Inc. to Pay More Than $1.1 Million for Misrepresenting the Performance and Efficacy of Supposed “N95-Grade” Zephyr Face Masks | FTC CONSOLIDATED FINANCIAL HIGHLIGHTS | Nintendo Business Update - January-March 2024 | Remedy Consolidated Financial Results for the year ended March 31, 2024 | Capcom Electronic Arts Reports Q4 and FY24 Results | EA INVESTMENT INTERLUDE
Atari relaunches Infogrames, immediately buys Totally Reliable Delivery Service | Game Developer Overwolf acquires Nitro | Uri Marchand on LinkedIn CORSAIR Pursuing an Acquisition of Fanatec, the Leading Brand for Sim Racing Hardware | Corsair

The Embracer Group name is going away, splitting its mega-conglomerate into three in an attempt to move on from its destructive legacy. But with Lars Wingefors sticking around to lead the holding company, our expectations are tempered. Also: Meta loses billions more as it tries to become the Windows of MR and earnings season is here!
You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise!
TIME STAMPS
[00:01:54] - Embracer Group Splits Into Three Pieces [00:32:32] - Meta MR Losses Mount [00:42:03] - Paradox Q1 FY24 Earnings [00:44:16] - Microsoft Q3 FY24 Earnings [00:49:10] - Investment Interlude [00:53:08] - Quick Hits [01:01:27] - Labor Report SOURCES
EMBRACER GROUP ANNOUNCES ITS INTENTION TO TRANSFORM INTO THREE STANDALONE PUBLICLY LISTED ENTITIES AT NASDAQ STOCKHOLM | Embracer Group ASMODEE SECURES FINANCING AGREEMENT OF EUR 900 MILLION AS PART OF SEPARATION, DELEVERAGING THE REMAINING EMBRACER GROUP | Embracer Group OPEN LETTER BY EMBRACER GROUP CEO ABOUT THE TRANSFORMATION INTO THREE STANDALONE PUBLICLY LISTED ENTITIES | Embracer Group A New Era for Mixed Reality | Meta Interim report January – March 2024 | Paradox Earnings Release FY24 Q3 | Microsoft Modern Wolf lays off six staff in studio restructuring | Game Developer ‘It’s been really painful’: Ex-Lionhead devs explain why they’ve announced, and shelved, a new game | VGC INVESTMENT INTERLUDE
Atari Revives Infogrames as a Publishing Label | NewsWire Krafton acquires minority stake in Forever Skies developer Far From Home | Game Developer Rummikub maker Goliath continues push into hobby gaming with Lucky Duck Games buyout | BoardGameWire CMON buys Japon Brand, the company which introduced the world to Love Letter and Machi Koro | BoardGameWire

Two months after Take-Two said it wasn’t planning layoffs it has… well… by now you know. Also, we’re trying something new and fun with this episode. Join us for a lively discussion about keeping the industry healthy and a deep dive into what the heck differentiates III from AA!
You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise!
TIME STAMPS
[00:01:45] - Discussion Time! (How to build a healthier industry and just what does “indie” mean these days?” [00:23:49] - Investment Interlude [00:34:19] - Quick Hits [00:41:01] - Labor Report SOURCES
Bold Spirit Games Has Laid Off 30 | Bold Spirit Games (@BoldSpiritGames) on Twitter Palia Dev Lays Off 35 Percent of Workers Only a Few Months After Beta Release | IGN EA reportedly kills Apex Legends' UK-based QA team | Game Developer Take-Two Interactive - Form 8-K | Take-Two Interactive Meow Wolf to cut 165 jobs across multiple states | Santa Fe Reporter Kwalee lays off unknown number of staff as it "reshapes business" | GamesIndustry Jeff and Annie Strain’s Prytania Media Have Closed Possibility Space | Russell Peterson on LinkedIn INVESTMENT INTERLUDE
Atari has bought Rollercoaster Tycoon 3 for $7m | Eurogamer Following Baldur's Gate 3, WotC And Hasbro Are Investing $1 Billion In Their AAA Game Ecosystem | GameSpot PUBG maker Krafton leads $15M investment in to UK studio Red Rover Interactive | Game Developer

We’ve come full circle. Embracer Group just took a massive loss to get some much-needed cash in hopes of filling a seemingly bottomless hole of debt. Saber is gone. Zen is gone. 4A is gone. Gearbox is gone. Also, SAG-AFTRA may strike against video game companies, some new studios are popping up, but many others are still laying off and closing.
You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise!
TIME STAMPS
[00:00:30] - GDC and PAX East Recap [00:11:27] - Gaming Safety Coalition [00:14:53] - Circana Report on U.S. Video Game Spending for February 2024 [00:29:57] - GameStop Q4 FY24 Earnings [00:33:03] - Investment Interlude [00:47:40] - Divestment Dinterlude [01:03:42] - Quick Hits [01:16:04] - Labor Report SOURCES
Gaming Safety Coalition | Gaming Safety Coalition GameStop Reports Fourth Quarter and Fiscal Year 2023 Results | GameStop Report: Australian studio Torus Games effectively shuts down after 30 years | Game Developer Eggnut is Closing | Eggnut (@eggnutgames) on Twitter Deviation Games is Closing | Kriste Stull on LinkedIn Rooster Teeth Shut Down By Warner Bros. Discovery | Deadline Hollywood Crop Circle Update | Jennifer Klasing on LinkedIn Velan Studios Layoffs | Velan Studios on LinkedIn Something Wicked Layoffs | Eric Webb on LinkedIn Smilegate Barcelona reportedly closed and all employees let go | VGC Nintendo makes cuts to US QA contractors | GamesIndustry A MESSAGE FROM MAX HOBERMAN, CEO OF CERTAIN AFFINITY | Certain Affinity SAG-AFTRA “50/50, If Not More Likely” To Strike Against Video Game Companies Soon | Deadline Hollywood Microsoft voluntarily recognizes 600-strong Activision Blizzard QA union | Game Developer Sega of America workers ratify union contract, protecting 150 employees | Polygon INVESTMENT INTERLUDE
TURTLE BEACH ANNOUNCES TRANSFORMATIONAL ACQUISITION OF PDP | Turtle Beach Virtuos acquires Beyond-FX | GamesIndustry Sensor Tower acquires Data.ai | GamesIndustry Stellar Blade studio Shift Up files for IPO | GamesIndustry Shinji Mikami founds new studio, Kamuy Inc. | Game Developer Popularium secures $2m seed funding for next game by Magic: The Gathering creator Richard Garfield | GamesIndustry EMBRACER GROUP CEASES ALL OPERATIONS IN RUSSIA THROUGH THE DIVESTMENT OF SELECTED ASSETS FROM THE OPERATIVE GROUP SABER INTERACTIVE | Embracer Group Tencent reportedly takes over two ByteDance games teams | GamesIndustry The developer of the two-dimensional game "Nikke" applied for listing at a valuation of 3 trillion won, and Tencent held 24% of the shares Game Grand View | GameLook.com.cn

Triple-A game development as we know it is unsustainable. It doesn't matter if a game succeeds or fails, the corporate machine is grinding developers up and spitting them out by the thousands. Things need to change. 
You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise!
TIME STAMPS
[00:01:29] - Circana Report on U.S. Video Game Spending for January 2024 [00:07:04] - Investment Interlude [00:18:43] - Quick Hits [00:21:25] - Labor Report [00:43:33] - FAFO! SOURCES
An Important Update from PlayStation Studios | SIE Blog Difficult News About Our Workforce | SIE Blog Continuing to evolve our business and teams | EA Respawn's Star Wars FPS Is Canceled, But Work on Next Jedi Game, Black Panther and Iron Man Will Continue | IGN Marcus Lehto has departed EA | Marcus Lehto (@game_fabricator) on Twitter EA cutting "small number" of staff as it sunsets two mobile games | GamesIndustry Supermassive Confirms Layoffs | Supermassive (@SuperMGames) on Twitter British Game Maker Supermassive Set to Lay Off 90 Workers | Bloomberg (Paywall) Die Gute Fabrik is Stopping Production | Die Gute Fabrik (@gutefabrik) on Twitter ESL Faceit Group lays off 15% of staff 2 years after $1.5B merger | GamesBeat Star Citizen developer hit with layoffs amid claims of a "highly toxic company" | Eurogamer Wildlife Studios is laying off 21 percent of its workforce | Game Developer Keoken Studios lays off Four | Koen Deetman on LinkedIn Layoffs at Radical Forge | Radical Forge (@RadicalForge) on Twitter Deck Nine Games lays off 20 percent of staff | Game Developer ‘Grand Theft Auto’ Maker Rockstar Games Asks Workers to Return to Office Five Days a Week | Bloomberg (Paywall) Nintendo Files Lawsuit Against Creators of Switch Emulator Yuzu | Stephen Totilo (@stephentotilo) on Twitter INVESTMENT INTERLUDE
GamerSafer acquires Minecraft-focused Minehut server community | GamesBeat Embracer Group to Sell Saber, Developer of a New ‘Star Wars’ Game Remake, in $500 Million Deal | Bloomberg (Paywall)