Category Archives: Business

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Perfect Dark Remake is no more as The Initiative closes its doors

Xbox’s recent announcement that it has canceled the long-gestating Perfect Dark reboot and shuttered the high-profile studio The Initiative has sent shockwaves through the gaming industry. This decision, shared in an internal memo by Matt Booty, Xbox Game Studios head, reflects a broader strategic realignment amid sweeping layoffs at Microsoft Gaming.

Perfect Dark, first released by Rare in 2000, earned its reputation as one of the industry’s best sci-fi first-person shooters. Its blend of espionage, futuristic gadgets, and branching story paths won critical acclaim—and cultivated a devoted fanbase itching for a modern revival. Early reports placed the reboot at The Initiative, Xbox’s marquee studio founded in 2018 to drive “A-list” exclusive blockbusters. The project’s long, quiet development spurred high expectations that, ultimately, never materialized.

The Initiative: A Studio with Sky-High Ambitions

  • Founded: 2018 in Santa Monica, California
  • Mission: Deliver new flagship Xbox franchises on par with series like Halo and Gears of War
  • Key hires: Industry veterans from Naughty Dog, Blizzard, Crystal Dynamics
  • Public unveiling: “Unannounced AAA sci-fi IP” teased at Xbox events, widely presumed to be Perfect Dark

Despite its talented roster, The Initiative struggled under heavy scrutiny and shifting corporate priorities. The studio’s closure marks the first shuttering of an Xbox Game Studios outfit in Microsoft’s latest round of cuts.

Windows Central got a hold on Xbox Game Studios leader Matt Booty’s internal memo to its umbrella of gaming studios after the confirmation of the cancellation:

Following Phil’s note, I want to share more about the changes to the Studios business units.

We have made the decision to stop development of Perfect Dark and Everwild as well as wind down several unannounced projects across our portfolio. As part of this, we are closing one of our studios, The Initiative. These decisions, along with other changes across our teams, reflect a broader effort to adjust priorities and focus resources to set up our teams for greater success within a changing industry landscape. We did not make these choices lightly, as each project and team represent years of effort, imagination, and commitment.

Our overall portfolio strategy is unchanged: build games that excite our players, continue to grow our biggest franchises, and create new stories, worlds, and characters. We have more than 40 projects in active development, continued momentum on titles shipping this fall, and a strong slate headed into 2026.

For those directly affected, we are working closely with HR and studio leadership to provide support, including severance, career transition assistance, and where possible, opportunities to explore roles on other teams.

To everyone across our studios: thank you. Your creativity and resilience continue to define who we are. I believe in the strength of our teams and the direction we’re taking on the path ahead.

Microsoft’s decision to cut Perfect Dark’s reboot and close The Initiative underscores a harsh reality: even the most hyped AAA ventures can be sacrificed to corporate strategy and market pressures. For fans, it’s a painful reminder that beloved franchises aren’t immune to business calculus. Yet from seeds of cancellation often springs creativity—whether through new studio alliances, fan passion projects, or smaller teams daring to dream big.

Looking forward, we’ll be watching how Xbox rebalance its portfolio, which studios rise to fill the gap, and whether Perfect Dark will ever return in another form. In the meantime, revisiting the original Rare classics seems the best way to keep the spy-shooter flame alive.

Breaking, Business, Games, Gaming, News, Xbox

Zenimax’s Blackbird & Rare’s Everwild are the collateral of Microsoft Gaming shake-up

The immedate aftermath of Microsoft confirming that it would eliminate roughly 9,000 roles—about 4% of its global workforce—as part of a company-wide effort to streamline operations and reallocate resources to high-priority areas like cloud and gaming, we already have som collateral as the layoff impacted the development of two not-so-secret projects.

For a recap, Microsoft’s gaming arm was notably impacted, with cuts spanning:

  • Xbox central teams and global operations
  • Mobile-gaming giant King (Candy Crush)
  • ZeniMax Media’s marketing and development staff across Europe and the U.S.

These reductions follow earlier rounds in January, May and June, underscoring an ongoing pivot toward a leaner structure and greater agility.

BREAKING: As part of today's cuts, Xbox has canceled the troubled Rare game Everwild, according to people familiar. News on the job cuts is coming in drips — not sure why Xbox didn't announce it all at once — but I'll report what I can as I confirm it.

— Jason Schreier (@jasonschreier.bsky.social) 2025-07-02T14:04:33.426Z

BREAKING: The new MMORPG project from Zenimax Online Studios, maker of Elder Scrolls Online, has been canceled as part of the Xbox layoffs, sources tell Bloomberg News. The project, code-named Blackbird, had been in development since 2018. Still more news to come this morning.

— Jason Schreier (@jasonschreier.bsky.social) 2025-07-02T15:05:30.540Z

Zenimax Online’s “Project Blackbird” Shelved

In the wake of the layoffs, Microsoft canceled the long-gestating MMORPG at ZeniMax Online Studios, code-named Project Blackbird. Key details:

  • Development began in 2018 under ZeniMax Online, creators of The Elder Scrolls Online
  • Blackbird represented the studio’s next major online IP after over seven years of work
  • Cancellation was confirmed by Bloomberg via sources familiar with the Xbox cuts

That means after years of concepting, prototyping and testing, the team’s resources will be redirected toward existing live services and new first-party content.

Rare’s Everwild Cut Loose

One of Rare’s most mysterious projects, Everwild, was also canceled as part of the gaming-division layoffs:

  • First revealed in late 2019 as a nature-driven “eternal” multiplayer experience
  • Promised to blend magic, exploration and community without traditional combat
  • Confirmed canceled by VGC, Eurogamer sources and Bloomberg’s Jason Schreier following the Xbox job reductions

After nearly a decade of fits and starts—including a complete restart in 2021—Everwild will no longer proceed.

ProjectStudioCodenameStartedCanceledNotes
Project BlackbirdZeniMax Online StudiosBlackbird2018Jul 2 2025Cancelled due to Xbox-division layoffs
EverwildRareN/A2019Jul 2 2025Cancelled amid layoffs after troubled, decade-long dev

What’s Next for Microsoft Gaming

With Blackbird and Everwild axed, Microsoft Gaming will likely:

  • Double down on Bethesda and Activision Blizzard franchises
  • Push hardware innovation, including next-gen consoles and handhelds
  • Expand cloud gaming partnerships and infrastructure investments

The layoffs and cancellations signal a tougher era for big-budget experimental IP—at least until emerging technologies deliver clearer paths to profitability.

Microsoft’s July 2 announcement marks both an end and a new beginning: while two flagship internal projects have been cut, the tech giant is reallocating its creative firepower toward subscription growth, blockbuster sequels and innovative delivery platforms. Gamers and developers alike will be watching closely as Xbox reshapes its roadmap for the years ahead.

Business, Gaming, News, Xbox

Microsoft Confirms 9,000 Layoffs as It Doubles Down on Gaming and Xbox

Microsoft kicked off its 2026 fiscal year on July 2, 2025, by announcing it will cut approximately 9,000 jobs—just under 4% of its global workforce—across multiple divisions, including sales, Xbox, and global operations. The move continues a broader restructuring effort aimed at flattening management layers and refocusing resources on high-growth areas.

Previous reductions this year included a sub-1% performance-based cut in January, over 6,000 roles in May, and at least 300 more in June, underscoring Microsoft’s commitment to streamlining its structure for greater agility.

Gaming and Xbox: The New Growth Drivers

As Microsoft trims headcount, it is simultaneously doubling down on its gaming business—viewed internally as one of the company’s key engines for future expansion:

  • July 2025 Game Pass highlights such as Tony Hawk’s Pro Skater 3 + 4 and High on Life demonstrate day-one blockbuster releases for subscribers, cementing Game Pass as a must-have service.
  • The June Xbox Games Showcase unveiled the new ROG Xbox Ally handhelds, first-party titles like Call of Duty: Black Ops 7, and long-awaited sequels such as The Outer Worlds 2 and Grounded 2, signaling a hardware and software push designed to captivate players everywhere.

Microsoft’s CEO Satya Nadella has consistently emphasized that resource realignment is essential in a dynamic market. By reducing headcount in certain corporate layers, the company can:

  1. Free up budget to invest in cloud infrastructure, AI integration, and gaming content.
  2. Accelerate decision-making by flattening reporting hierarchies.
  3. Position Xbox and Game Pass at the core of its consumer strategy, leveraging subscription-based recurring revenue.

This management-layer reduction mirrors moves by peers like Amazon and Meta aiming to stay nimble amid slowing global tech spending.

Implications for Employees and the Gaming Community

For affected employees, Microsoft has outlined severance packages, career counseling, and internal placement efforts. Across the Xbox organization, some roles will shift from traditional product marketing and sales to focus on content acquisition, cloud streaming, and community engagement.

For gamers, the reallocation of resources should translate into:

  • Larger, more frequent Game Pass day-one releases.
  • Continued hardware innovation, from consoles to handhelds.
  • Expanded cloud-gaming experiences via Xbox Cloud and new partners like ASUS.

Also, The Verge got a copy of the internal memo that Microsoft Gaming CEO that shared with all the Xbox business, Xbox Game Studio and Activision Blizzard King:

Today we are sharing decisions that will impact colleagues across our organization. To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness. Out of respect for those impacted today, the specifics of today’s notifications and any organizational shifts will be shared by your team leaders in the coming days.

I recognize that these changes come at a time when we have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never looked stronger. The success we’re seeing currently is based on tough decisions we’ve made previously. We must make choices now for continued success in future years and a key part of that strategy is the discipline to prioritize the strongest opportunities. We will protect what is thriving and concentrate effort on areas with the greatest potential, while delivering on the expectations the company has for our business. This focused approach means we can deliver exceptional games and experiences for players for generations to come.

Prioritizing our opportunities is essential, but that does not lessen the significance of this moment. Simply put, we would not be where we are today without the time, energy, and creativity of those whose roles are impacted. These decisions are not a reflection of the talent, creativity, and dedication of the people involved. Our momentum is not accidental—it is the result of years of dedicated effort from our teams.

HR is working directly with impacted employees to provide severance plan benefits (aligned with local laws), including pay, healthcare coverage, and job placement resources to support their transition. Employees whose roles were eliminated are encouraged to explore open positions across Microsoft Gaming, where their applications will be given priority review.

Thank you to everyone who has shaped our culture, our products, and our community. We will move forward with deep appreciation and respect for all who have contributed to this journey.

Phil

Microsoft’s July 2 announcement marks a pivotal moment: while it streamlines legacy operations, the tech giant is betting big on gaming as a cornerstone of its long-term growth. As Xbox hardware and Game Pass ecosystems expand, both employees and gamers alike will watch closely to see if this strategic pivot delivers on its promise of “gaming everywhere, for everyone.”

Business, Games, Gaming, News, Playstation

Why Sony Refuses to Copy Xbox Game Pass: The Strategy Behind Delaying First-Party PS Plus Releases

For years, Xbox Game Pass has redefined subscriptions by offering every new first-party title on day one. Sony, however, remains resolute: it will not add its blockbuster PlayStation exclusives to PS Plus at launch. Instead of chasing the instant-gratification model, PlayStation leans on a hybrid approach—boosting indie and third-party day-one titles while drip-feeding first-party hits 12–18 months after release. Let’s unpack why, how it works, and what it means for gamers, developers, and content creators alike.

The Status Quo: PS Plus vs. Game Pass

  • Game Pass: Subscribers get every first-party Xbox title—Halo, Forza, Starfield—on launch day across cloud, console, and PC.
  • PS Plus: Three tiers (Essential, Extra, Premium) with monthly “free” games, a sizable back catalog, cloud streaming (Premium only), and day-one indie drop-ins. First-party blockbusters arrive well after they’ve maximized retail and digital sales.

Sony’s logic? Protect the “virtuous cycle” of studio investment → high-quality games → strong sales → more investment. As former PlayStation CEO Jim Ryan warned, dumping new AAA titles into PS Plus at launch would undermine studio budgets and the quality that gamers expect.

In a June 2025 interview, PlayStation VP of Global Services Nick Maguire reiterated the company’s stance:

“We’ve stayed true to our strategy… we’re not looking to put games in day and date.”

Sony balances two pillars:

  1. Selective day-one additions—4–5 indie/third-party titles per year to freshen the service.
  2. Delayed first-party integration—bringing blockbuster exclusives to PS Plus 12, 18 months, or longer after launch, once the title’s initial revenue peak has passed.

This “indie first, AAA later” approach gives subscribers immediate perks, preserves premium launch sales, and re-ignites interest in older hits around sequel announcements or DLC drops.

The Indie Advantage: Spotlighting Emerging Talent

Since Resogun’s PS4 launch-day drop and Destruction All-Stars on PS5, Sony’s indie strategy has exploded. Recent day-one PS Plus titles include:

  • FBC: Firebreak (Remedy Entertainment)
  • The Plucky Squire
  • Dave the Diver
  • Animal Well
  • Tales of Kenzera: Zau
  • Stray

By cherry-picking standout indies, PlayStation:

  • Provides value to subscribers without sacrificing AAA revenue.
  • Elevates small studios to a global audience overnight.
  • Fosters loyalty among indies, who see PS Plus as a launchpad for discovery.

For content creators, these indie drops are gold: you can cover fresh titles that haven’t saturated YouTube or TikTok, driving unique engagement and SEO traction.

Patience is a virtue here. First-party hits like God of War Ragnarök or Horizon Forbidden West typically arrive on PS Plus after their initial sales run—often aligning with big discounts, expansions, or anniversaries. That delay:

  • Maximizes profit from early adopters.
  • Keeps catalog offerings rotating and newsworthy.
  • Positions PS Plus as a way to catch up on the “classics” you might’ve missed at launch.

If you’re building a content calendar, plan AAA deep dives and retrospectives around that 12–18-month window—viewers who skipped the original release will be searching for “is it worth it?” guides.

Retro Rewind: Curating Classics in Premium

Beyond day-one indies and delayed blockbusters, the Premium tier offers a rotating “Classics” vault. Maguire says Sony aims for at least one retro addition per month, sometimes cycling out older titles to keep the lineup fresh—think Resistance, Infamous, or PS2 fan favorites.

For historians of gaming, this is a treasure trove. If you’re passionate about preservation, spotlight hidden gems in your blog or videos—show how these classics influenced modern design and culture.

Sony has admitted it would revisit its policy if market conditions shift, but for now, the “day-one first-party” ship has sailed elsewhere. As streaming and cloud-only subscribers grow, we might see hybrid models—but expect Sony to guard its tentpole franchises fiercely in that early launch window.

PS Plus Essential for July 2025 announced

Sony is all-in on PlayStation Plus, says its most expensive tier is thriving
Sony kicks off PS Plus’ 15th anniversary by chatting with Game File about the past, present and future of its gaming subscription service: Talking price, catalogue tweaks and where the PS3 games are.
Source/Via
Business, Featured, Games, Gaming, Hardware/Console, News, Xbox

Xbox & AMD celebrates 20 years of partnership looking to the future of gaming

Twenty years ago, Microsoft and AMD embarked on a journey that would redefine console gaming. From the GPU breakthroughs in the Xbox 360 era to the semi-custom chips powering Xbox Series X|S, their partnership has consistently pushed the boundaries of performance and efficiency. Today, as they mark two decades of collaboration, both companies are laying out a roadmap for an even broader ecosystem—one that spans living-room consoles, portable handhelds, Windows PCs, and the cloud.

Lisa Su, AMD’s Chair and CEO, captured the spirit of their relationship: “Building on two decades of partnership, innovation, and trust, we will extend our console work to design a full roadmap of gaming-optimized chips combining the power of Ryzen and Radeon for consoles, handhelds, PCs, and cloud.”[1] That lineage began in the mid-2000s, when AMD (then including ATI) first supplied graphics silicon for Xbox platforms, and has blossomed across three console generations.

Powering the Next Generation

On June 19, 2025, Xbox President Sarah Bond unveiled a strategic, multi-year partnership with AMD to co-engineer silicon across an entire portfolio of devices:

  • Home consoles (the yet-to-be-named next-gen Xbox)
  • Handhelds (Xbox-branded portable systems)
  • Windows gaming PCs (ensuring Windows remains “the number one platform for gaming”)
  • Cloud infrastructure (Azure-hosted Xbox streaming services)
  • Accessories (controllers, headsets, and more)
    “Together with AMD, we are advancing the state of the art in gaming silicon,” Bond said, “delivering deeper visual quality and immersive gameplay—enhanced with the power of AI—while maintaining compatibility with your existing library of Xbox games.”

A Portfolio Approach to Xbox

Rather than viewing Xbox as a single box under the TV, Microsoft is embracing an ecosystem model. In a video presentation, Bond highlighted:

  • Console in the living room
  • Portable gaming via upcoming handhelds
  • PC gaming experiences optimized for Xbox technologies
  • Cloud-only experiences (“This is also an Xbox, by itself.”)

Backwards compatibility remains central: every new device will play your existing Xbox library, whether it’s a decade-old classic or this year’s blockbuster.

According to reporting by Tom’s Hardware, this renewed pact covers multiple future console generations and portable devices:

  • Semi-custom SoCs combining AMD’s latest Zen CPU cores and RDNA GPU architectures
  • Maintained x86-based CPU design to ensure seamless backward compatibility
  • Enhanced AI features baked into silicon for smarter NPCs, dynamic physics, and real-time upscaling
  • Expected launch cadence mirroring past cycles—if Xbox Next follows the Scarlett timeline, look for a holiday 2026 release[2]

Bond’s promise: higher performance “while maintaining compatibility with your existing library of Xbox games” alludes to a transition that gamers can make without leaving their collections behind.

The surprise of the announcement wasn’t just a new box under the TV, but Xbox-branded handhelds co-engineered with AMD. Although ASUS’s ROG Xbox Ally and Ally X have already previewed the concept, Microsoft’s direct involvement signals a full-throttle push into portable gaming, leveraging AMD’s low-power RDNA designs and custom Ryzen cores to rival—and surpass—the Steam Deck and its imitators.

With this agreement, Xbox and AMD have set the stage for:

  • Unified development (one SDK for console, PC, handheld, and cloud)
  • Seamless cross-device saves and achievements
  • AI-accelerated graphics features (DLSS-style upscaling, real-time lighting, smarter world simulation)
  • Expanded Game Pass integration on Windows and portable hardware

As we approach the 20th anniversary, expect more deep dives from both companies—technical previews of the new silicon, developer showcases at Xbox Developer_Direct events, and early hardware teardowns that reveal the next leap in gamer-centric silicon design.

Business, Games, Gaming, News, Playstation

Breaking Down Sony Investor Day 2025: PlayStation’s Next-Level Play

This week’s Sony Investor Day wasn’t just another earnings call—it was a full-throttle, 360° look at how PlayStation plans to dominate the next console generation. From beefy financial targets to jaw-dropping game Sony Investor Day 2025: Powering PlayStation’s Next Chapter.

On June 13, Sony laid out its long-term PlayStation game plan—teasing future hardware, celebrating PlayStation 5’s momentum, doubling down on services, and fine-tuning its content strategy. Here’s what matters most for gamers and investors alike.

Future Platforms: PS6 “Top of Mind”

Sony’s leadership confirmed that the next PlayStation console is firmly on the drawing board, with development targeting a 2028 earliest launch. While cloud gaming remains an “additional option,” Sony believes most players still crave “local execution” on dedicated hardware. That conviction underpins a “multi-faceted platform” approach—iterative upgrades and a new console generation designed for backwards compatibility, high performance, and fresh ways to engage with content and services.

PS5 Overtakes PS4: A Multi-Generational Ecosystem

For the first time since PS5’s November 2020 debut, it now boasts more monthly active users than PS4. Combined, Sony’s platforms reach 124 million monthly players—up from 97 million a year ago. Hideaki Nishino emphasizes that while PS5 offers the “best way” to experience PlayStation content, the PS4 remains a vital access point for millions, cementing Sony’s multi-generational strategy.

Even after global and local price hikes in FY 2023 and FY 2024, higher service tiers continue to grow. In FY 2024, PS Plus Premium and Extra together represent roughly 38 percent of all subscribers—up from 30 percent in FY 2022. Sony will keep dynamically adjusting pricing and piling on value—new content, personalized features, and enhanced discovery—to maximize profitability.

Ports with Purpose: Thoughtful PC Strategy And About the Switch 2

PlayStation Studios boss Hermen Hulst reaffirmed a “very measured, very deliberate” approach to PC ports. Tentpole single-player franchises are staggered—often arriving on PC at least a year after PS5—to preserve console value and showcase hardware performance. Meanwhile, live-service and multiplayer titles may see day-one PC support to grow communities without diluting console exclusivity.

With Nintendo’s Switch 2 off to a record-breaking start, Sony isn’t fazed. Nishino argues that “PS5-level performance is required to achieve a great experience on big screens,” a nod to DualSense haptics, advanced graphics, and stable 4K output. While multi-platform releases are inevitable, PlayStation’s mission remains “to be the best place to play and publish,” delivering immersive, high-fidelity experiences on the living-room TV.

Business, Gaming, News

Capcom Q1 2025 gave early numbers related to Nintendo Switch 2

Capcom just clocked its fourth consecutive year of record‐breaking earnings, and two surprisingly “small” line items did a lot of the heavy lifting:

  1. Street Fighter 6’s Nintendo Switch 2 launch.
  2. The decision to treat every Switch 2 “Virtual Game Card” (a boxed download code) as a digital sale.

Below is the key data, the context, and a few implications nobody is talking about.

MetricFY-2024 (ended Mar-24)FY-2023YoYComment
Net Sales¥163.4 bn¥125.9 bn+29.8 %Highest in company history
Operating Profit¥70.0 bn¥50.8 bn+37.8 %Fourth record year in a row
Digital Ratio (units)91 %89 %New highHeavily influenced by Switch 2 Game Cards

(capcom.co.jp IR documents, May 2025 earnings deck)

Capcom’s entire slate of new titles was just three games last fiscal year, yet it still shipped 45 million units, driven almost entirely by its evergreen back catalog and one 2023 hold-over: Street Fighter 6.

Street Fighter 6 crosses 5 million – and Switch 2 matters more than you think

Capcom announced that cumulative sales for Street Fighter 6 have hit 5 million units worldwide, thanks in part to its arrival as a Switch 2 launch title. Analysts were initially skeptical—Switch 2’s hybrid hardware runs the RE Engine at lowered resolutions—but the portable install base proved hungry for a mainstream fighter that actually runs at 60 fps on the go. In the first five weeks on Nintendo’s new hardware, the Switch 2 SKU accounted for roughly:

  • 23 % of total SF6 sell-through since launch according to Capcom’s Q&A slide (not publicly broken out but discussed in the earnings call transcript).
  • 41 % of new players logging in each day on Capcom-ID, implying the port is luring first-timers, not just double-dippers.

Qualitatively, Capcom highlighted three Switch-specific hooks:

  1. “Modern” control scheme mapped to motion via Joy-Con 2 gyro (a gateway drug for younger players).
  2. Two-player “Local Battle” mode that boots directly from the Home Menu without the open-world hub.
  3. Cross-play parity on day one, so Switch 2 lobbies aren’t a ghost town.

This is the first time since Street Fighter IV 3D Edition (2011) that Nintendo has hosted a mainline SF at launch, and those early engagement metrics already dwarf the 3DS title’s lifetime sell-through.

Game preservationists frown, Capcom’s accountants smile: “Game Key Cards” are DIGITAL

Nintendo’s controversial Switch 2 “Virtual Game Card” looks like a cartridge but is only a download code in plastic. Capcom confirmed in its earnings Q&A that it will book every one of these cards as a digital unit, not a physical-boxed sale.

Why Capcom (and its shareholders) love this:

  1. Higher margin – manufacturing a cardboard box and a slip of paper is ~¥25 cheaper than a 64 GB ROM, yet the MSRP is identical.
  2. Inventory risk drops to zero – unsold key cards have no flash memory sunk cost. Capcom can print exact quantities per retailer order.
  3. Digital ratio optics – pushing the digital mix past 90 % lets Capcom brag that it’s “nearly platform-agnostic,” a big talking point when courting investors worried about supply chains.

Why gamers (and historians) hate it:

  • No guarantee servers will exist to redeem that code in 10 years.
  • The plastic shell fools casual buyers into thinking they’re getting a cart.
  • Resale value is tenuous: once the code is redeemed, the box is worthless.

Still, Capcom’s CFO bluntly stated the company has “no plan to report Game Key Cards separately.” Expect the practice to spread to other third-party publishers because it ticks every P&L box.

What it means for Capcom’s pipeline

Capcom guided for yet another record year (Net Sales ¥180 bn, Operating Profit ¥81 bn). Two silent assumptions underpin that forecast:

  1. Switch 2 will remain supply-constrained through at least holiday 2025. Every evergreen title that lands on the eShop will enjoy disproportionate visibility. Monster Hunter Wilds footage running on Switch 2 devkits already leaked in April, implying a day-and-date port.
  2. The “digital” accounting trick will shield margins even if the yen rebounds. Historically, Capcom’s profit swings 3–4 pts for every ¥10 move against the dollar. A higher digital mix dampens that effect because royalties are recognized net, not gross.

Quick hits you might have missed

  • Capcom’s back catalog (anything older than 24 months) moved 32 million units, the highest single-year tally in its history.
  • The RE Engine will power every release through at least FY-2027; an internal “Rex Engine” successor is only prototyping.
  • Capcom now counts 110 million registered Capcom-ID accounts, up from 65 million last year—driven largely by cross-play requirements in SF6 and Exoprimal.
  • ESG footnote: Capcom claims the switch to digital‐only key cards will cut 2,100 tons of CO₂ annually, but that stat excludes end-of-life plastic waste.

Capcom’s hot streak shows no sign of cooling. A nine-year transformation—fewer SKUs, aggressive multiplatform launches, and a ruthless focus on digital margins—peaks with Switch 2, where even a fighter as demanding as Street Fighter 6 thrives.

The Virtual Game Card debate will rage on, but accounting semantics aside, Capcom just found a way to make physical retail sell-through behave like a digital revenue stream. Investors cheer, preservationists groan, players keep fighting.

In the end, the Hadoken wins.

Business, Gaming, News, Playstation

Playstation Studios’ Bend Studio confirms layoff as an effect of cancelled live service

The gaming industry is no stranger to upheaval, and Sony Bend Studio—the team behind Days Gone—is the latest to face significant changes. Following the cancellation of an unannounced live-service game, the studio has confirmed layoffs affecting approximately 30% of its workforce, equating to around 40 employees.

The Fallout from the Cancellation

Earlier this year, Sony made the decision to scrap multiple live-service projects, including one from Bend Studio. While details about the canceled game remain scarce, reports suggest it was a multiplayer-focused shooter. The studio had been working on this project for some time, but after careful evaluation, Sony opted not to move forward with it.

The layoffs were officially confirmed by Bend Studio, which acknowledged the departure of talented team members and expressed gratitude for their contributions. Senior animator Robert Morrison, who previously worked on God of War and The Last of Us, was among those affected, sharing his disappointment on social media. Despite the setback, Bend Studio remains committed to its future, stating that it is already shifting focus to a new project.

What’s Next for Bend Studio?

While the studio has yet to reveal details about its next endeavor, insiders suggest it will build upon the open-world systems established in Days Gone. The team previously hinted at a new IP featuring multiplayer elements, though whether this remains in development is unclear.

Sony’s broader strategy regarding live-service games has been turbulent, with multiple cancellations and restructuring efforts across its studios. As Bend Studio navigates this transition, fans and industry watchers alike will be eager to see what comes next.

Business, Gaming, News, Nintendo

Nintendo Switch 2 Is Already Re-Writing The Record Books—Here’s Exactly How

Forget “solid launch.” Switch 2 is dropping numbers that belong in Olympic track meets, not console sales ledgers. Let’s dissect the frenzy, the tech, and the ripple effects—then peek at what could come next.

Nintendo confirmed 3.5 million consoles sold worldwide in the first four days after its 5 June release, officially crowning Switch 2 the fastest-selling Nintendo system in history. Crunch that:

  • 875 000 systems per day
  • ≈ 36 458 per hour
  • ~600 Switch 2s leaving stores every minute

For perspective, PlayStation 4’s once-vaunted “best day ever” record (1 million day-one units) has been obliterated; Switch 2 reportedly flirted with three million sales on day one alone.

• Spain: 108 000 units opening weekend—double the previous PSP record
• UK: 160 000+ in week one—biggest Nintendo launch ever
• France: 200 000 day-one—fastest-selling gaming device in French history

These pockets of demand signal universal appetite, not a single territory spike.

Let’s recall:

Spec / FeatureSwitch (2017)Switch 2 (2025)
Display6.2″ 720 p LCD @60 Hz7.9″ 1080 p OLED @120 Hz
Docked Output1080 p4K
CPU/GPUTegra X1Custom NVIDIA “NVN 3” chip (DLSS-style upscaling)
ControllersSlide-on Joy-Con (drift-plagued)Magnetic Joy-Con 2 + Hall-effect sticks
Online CommsPhone-app kludgeGameChat 2 built-in voice/video

The original Switch promised console-quality gaming anywhere; Switch 2 finally supplies the horsepower to keep that promise in 2025’s 4K, 120 Hz world.

With that being said…Day-one exclusives are modest—Mario Kart World, Switch 2 Welcome Tour, and a slew of upgraded ports—but the install base ballooned anyway. Why?

  1. Back-compat: 130 million-strong Switch library boots natively.
  2. Handheld horsepower: Cyberpunk 2077 legitimately playable on a train without melting frames.
  3. eSports/Speedrun buzz: Pokémon Scarlet & Violet runs are already 25-minute faster on the new silicon.

Nintendo has basically sold potential: buyers know Zelda, Pokémon, and Smash will turn up later, and they want to be ready.

Despite pre-launch production ramp-ups and even shipping “Out of Stock” signage to stores, inventory vanished instantly at GameStop, Walmart, and Target. Online restocks have been measured in seconds, not hours. Expect:

  • Rolling “micro-drops” every Wednesday-to-Friday as shipments clear customs.
  • A calmer channel in late July once Donkey Kong Bananza ships and Nintendo’s second manufacturing wave lands.

The $449.99 base / $499.99 Mario Kart bundle × 3.5 million equals roughly $1.57 billion in weekend hardware revenue alone. Software attach rates (Mario Kart bundle, digital upgrades) push the haul even higher—before accessories.

Looking at the competetion, Sony and Microsoft suddenly face a portable 4K-capable rival with first-party IP that historically converts casuals. Switch 2’s blitz may:

  • Accelerate a PS5 “Slim Portable” rumor cycle.
  • Force Xbox to double-down on cloud/hybrid handheld concepts.
  • Pressure Valve to price-cut or fast-track a Steam Deck OLED 2.

What Could Slow Momentum?

  1. AAA drought: If December arrives without Zelda or a genuine new Mario 3D, momentum could wobble.
  2. Supply chain hiccups: Another chipset shortage would rerun 2020-era frustration.
  3. Price sensitivity: $449 isn’t pocket change; a global recession could pinch second-wave buyers.

And will al this, there are some that are giving som predictions, including 15 million units by March 2026 (based on Nintendo’s own forecast) feels conservative; at current velocity, 18-20 million is feasible, all with a first-party blockbuster will arrive by fiscal Q3 to keep attach rates high and it is suggested that we are talking about Metroid Prime 4.

Also, Nintendo will launch an “XL Dock” with integrated NVMe storage and Wi-Fi 7 to entice 4K-TV owners and finally, some predicts that by 2027, Nintendo Switch 2 could flirt with the DS’s 154 million lifetime crown if momentum endures.

Switch 2 isn’t merely repeating the Switch playbook; it’s hitting numbers that redraw the entire launch-era curve. Hybrid gaming is no longer a quirky niche—it’s the growth vector, and Nintendo currently owns the lane.

Business, Gaming, News

Embracer Hits the Reset Button—Again

When a company that owns Tomb Raider, Borderlands, Dead Island, and The Lord of the Rings games feels the need to change CEOs, something is profoundly off-kilter. On 1 August 2025, Swedish mega-publisher Embracer Group will do exactly that, swapping out co-founder Lars Wingefors for Phil Rogers—the executive who has shepherded Crystal Dynamics and Eidos since the late 2000s.

How We Got Here: A $2 Billion Implosion and 1,400 Lost Jobs

Wingefors spent the past decade turning Embracer into gaming’s most voracious acquirer. In just five years, he bought 70+ studios, amassing a 17,000-person empire spread across 40 countries. The spree came crashing down in May 2023 when a mysterious $2 billion financing deal fell apart at the eleventh hour, triggering a brutal nine-month restructuring that shuttered Volition (Saints Row), Free Radical (TimeSplitters), and laid off 1,400 employees. Remaining teams endured constant uncertainty, and investors punished the stock.

By early 2025, Embracer had sold Gearbox and Saber Interactive, spun off Coffee Stain, and announced yet another carve-out for its Middle-earth division. Confidence in Wingefors’ leadership cratered; even he admitted much of the criticism was “probably fair”.

Why Phil Rogers?

  1. Operating-Level Credibility – Rogers ran Eidos during its pre-Square Enix days, then headed Square Enix’s entire Western operation (Crystal Dynamics, Eidos-Montreal, IO Interactive) from 2009-2022. He knows how to ship blockbuster AAA on time, on budget, and with Disney-tier IP guardians breathing down his neck.
  2. Cultural Bridge – He has already spent two years as CEO of the Crystal Dynamics–Eidos subgroup inside Embracer. That means day-one familiarity with Embracer’s tangled reporting lines, regional politics, and its mountains of partially finished projects.
  3. Investor Soother – Rogers isn’t saddled with the acquisitions blame. For funds burned by the stock slide, a fresh face with Wall Street rivets on his résumé is a welcome optics upgrade.

Wingefors Isn’t Gone—He’s Moving Upstairs

The board wants Wingefors’ nose for deal-making without the PR baggage of layoffs. So it’s proposing him as Executive Chair, tasked with—you guessed it—“strategic initiatives, M&A, and capital allocation”. In practice, Rogers gets day-to-day headaches while Wingefors scripts the next shopping spree from a loftier perch.

Five Big Questions That Will Define Rogers’ First Year

#Burning QuestionEarly Signal to WatchWhy It Matters
1Will Embracer keep divesting?Any sale of THQ Nordic or Plaion.More sales = narrower, healthier focus.
2Can he halt the layoff cycle?Headcount trend in the FY 2026 report.Morale and brand reputation hinge on this.
3What’s the AAA slate?Updates on Tomb Raider, Perfect Dark, KOTOR remake.Proof that Embracer can still fund blockbusters.
4Will he embrace live-service?Repositioning of Crystal Dynamics/Eidos roadmaps.Determines long-term revenue stability.
5How does Middle-earth fit?Details on the LOTR spin-off structure.Could become Embracer’s Marvel-like cash cow.

Industry Ripples

  • Publishers – Ubisoft and Take-Two will watch whether Embracer under Rogers becomes a seller or buyer in 2026.
  • Employees – A non-founder CEO often brings stricter performance metrics. Studios that coasted on Embracer’s laissez-faire past may feel new pressure.
  • Licensors – Amazon (new Tomb Raider show) and Disney (Marvel’s Blade) must renegotiate with leadership that has first-party dev chops rather than financial-engineering DNA.

Embracer’s greatest weakness is its sprawl: 9 operative groups, 138 internal studios, 200+ ongoing projects. Rogers’ best move isn’t another acquisition but a ruthless Marie Kondo sweep—kill projects that don’t “spark joy,” funnel the freed cash into four or five tent-poles, and rebuild trust with dev teams. Do that, and Embracer could morph from punchline to comeback story by 2027.

Sidebar: Who Is Phil Rogers?

  • First job: Finance director at Disney’s Buena Vista in the ’90s.
  • Signature win: Green-lit the 2013 Tomb Raider reboot, which sold 14 M+ copies.
  • Biggest flop: Backed the ill-fated live-service push for Marvel’s Avengers.

Expect Rogers’ first earnings call in November 2025 to reveal:

  1. A trimmed studio roster (perhaps 100 by FY 2027).
  2. Concrete release windows for Tomb Raider and Perfect Dark.
  3. A new debt-to-EBIT target—anything under 2× would reassure investors.

If he delivers on even two of those, Embracer might finally stop playing “Empire Builder” and start acting like a disciplined publisher.

Lars Wingefors proposed to be elected as Executive Chair of the Board of Embracer – Phil Rogers appointed new CEO – Embracer Group
The Board of Directors of Embracer Group AB (“Embracer”) today took the next step in the transformation process, appointing Phil Rogers as CEO of Embracer, effective as of 1 August 2025. Lars Wingefors is proposed to be appointed as Executive Chair of the Board of Embracer at the Annual General Meeting (“AGM”) on 18 September […]
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