Virtual Economy Michael Futter and Amanda Farough

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 “F**k 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