Chris Kerr, Senior Editor, News, GameDeveloper.comSeptember 1, 20252 Min ReadLogo via Steam / Flag via PixabayValve is requiring Steam users based in the UK to verify their age using a credit card in order to access "mature content." The company said its new age assurance policy is designed to comply with the UK Online Safety Act (OSA), which is billed by the UK government as a new set of laws that will protect both children and adults online by pushing social media platforms and other internet businesses to take more responsibility for their users' safety.The OSA has resulted in some online platforms such as Reddit and Bluesky locking certain features behind age verification checks that require selfies, but Valve said it has chosen to rely on credit card checks to preserve the "maximum degree of user privacy.""The data processed in the verification process is identical to that of the millions of other Steam users who make purchases or store their payment details for convenience. The verification process therefore provides no information about a user's content preferences to payment providers or other third parties," wrote Valve in a blog post. "Valve handles the verification process using its own internal payment processing system, which is independently certified under the PCI-DSS standard."Valve claims its new age assurance policy is "highly effective" Related:The company explained that UK users who do not verify their age will be unable to access Steam store pages for "mature content games" or their associated community hubs. "You need to be logged into an active user account and explicitly opt-in through the account settings page [to access that content]," added Valve. "For UK users, this opt-in process requires age verification. Your UK Steam user account is considered age verified for as long as a valid credit card is stored on the account."Valve noted that Ofcom—the UK's independent regulator for online safety—has positioned credit card checks as one "highly effective age assurance measure." That's because UK residents must be at least 18 years of age obtain a credit card. "Having the credit card stored as a payment method acts as an additional deterrent against circumventing age verification by sharing a single Steam user account among multiple person," Valve continued. Valve has instructed customers who encounter issues when attempting to register their credit card on Steam to contact their local bank for assistance before filing a Steam Support ticket. "Our data minimal approach means that we typically do not have insight into reasons why a given credit card use fails," the company added. Related:Read more about:SteamTop StoriesAbout the AuthorChris KerrSenior Editor, News, GameDeveloper.comGame Developer news editor Chris Kerr is an award-winning journalist and reporter with over a decade of experience in the game industry. His byline has appeared in notable print and digital publications including Edge, Stuff, Wireframe, International Business Times, and PocketGamer.biz. Throughout his career, Chris has covered major industry events including GDC, PAX Australia, Gamescom, Paris Games Week, and Develop Brighton. He has featured on the judging panel at The Develop Star Awards on multiple occasions and appeared on BBC Radio 5 Live to discuss breaking news.See more from Chris KerrDaily news, dev blogs, and stories from Game Developer straight to your inboxStay UpdatedYou May Also Like

Chris Kerr, Senior Editor, News, GameDeveloper.comSeptember 1, 20251 Min ReadLogo and Mario character shot via NintendoNintendo has rebranded its Warpstar, Inc subsidiary as Nintendo Stars and tasked the new-look division with supporting and strengthening its transmedia projects. In a note to investors published on August 27, the Japanese company said Nintendo Stars has been made responsible for "the ancillary-use business tied to films that feature Nintendo Intellectual Property."In other words, Nintendo Stars will support Nintendo's growing movie roster through merchandising efforts, licensing, events, and other means. Nintendo brought its famous plumber to the big screen in 2023 with the release of The Super Mario Bros. Movie—an animated flick developed in partnership with Minions creator Illumination Pictures. According to Nintendo, the movie earned an estimated $1.35 billion at the international box office and was watched by 168.1 million people. The company has since announced another animated movie based on the Super Mario Bros. franchise that is currently slated for release on April 3, 2026.A live-action film based on The Legend of Zelda is also in development and is due to hit theatres on May 7, 2027. Nintendo Stars will strive to support the company's ongoing push into Hollywood while continuing to tend to the Kirby franchise. The company was established in 2001 as a joint venture between Nintendo and long-term collaborator HAL Laboratory to oversee Kirby merchandising and external media, such as the Kirby: Right Back at Ya! anime series. Nintendo took full ownership of Warpstar earlier this year and has now outlined its vision for the subsidiary.Related:Read more about:NintendoTransmedia & IP 'Boom'About the AuthorChris KerrSenior Editor, News, GameDeveloper.comGame Developer news editor Chris Kerr is an award-winning journalist and reporter with over a decade of experience in the game industry. His byline has appeared in notable print and digital publications including Edge, Stuff, Wireframe, International Business Times, and PocketGamer.biz. Throughout his career, Chris has covered major industry events including GDC, PAX Australia, Gamescom, Paris Games Week, and Develop Brighton. He has featured on the judging panel at The Develop Star Awards on multiple occasions and appeared on BBC Radio 5 Live to discuss breaking news.See more from Chris KerrDaily news, dev blogs, and stories from Game Developer straight to your inboxStay UpdatedYou May Also Like

Bryant Francis, Senior Editor, GameDeveloper.comAugust 28, 20253 Min ReadThree diablo characters defend a ritual from hordes of monsters in the latest season of Diablo IV.The forces of hell are unionizing. Today the Communication Workers of America has announced that over 450 game developers at Blizzard Entertainment who work on the Diablo series have voted to unionize under the CWA.The union vote concluded on the evening of August 27, 2025, with workers either signing union cards or indicating they wanted to unionize through an online portal. The successful vote means that workers will unionize under CWA local 9510 in Irvine, CA, Local 1118 in Albany, NY, and Local 6215 in Austin, TX.The union has been recognised by Microsoft and will represent a wide variety of disciplines across Blizzard Entertainment including designers, engineers, artists, and support staff. Diablo game producer and organizing committing member Kelly Yeo said that the mass layoffs at Microsoft were a major factor in rallying the unionization drive. "With every subsequent round of mass layoffs, I've witnessed the dread in my coworkers grow stronger because it feels like no amount of hard work is enough to protect us," they said. "This is just the first step for us joining a movement spreading across an industry that is tired of living in fear.""The day after the third round of mass layoffs, I walked into the office, and when I tried to open the door to the cafeteria, my badge was denied. For a moment, I wondered if getting breakfast was how I'd find out I was part of that round," added game designer and organizing committee member Ryan Littleton. While luckily it was just a technical issue, none of us should have to live with that constant worry that we might be let go at the drop of a hat."Related:Blizzard Entertainment has been the site of most major unionization drives across Xbox Game Studios. Most recently the studio's Story and Franchise development team voted to unionize earlier in August 2025.Unionization can address some of the "constant pressure of layoffs"The unionizing Diablo developers stressed to their peers that this initiative is one that can prevent developers from suffering the "constant pressure of layoffs," with multiple committee members protesting the "passion tax" that has held back advancements in workers rights. "At some point you have to choose between fight or flight, and forming a union is us doing just that—standing our ground in the industry," said senior software engineer and organizing committee member Nav Bhatti.CWA Local 9510 president Jason Justice said this development is part of a larger trend showing California has become "a hub for video game worker organizing. "What’s happening here is part of a much larger story about turning the tide in an industry that has long overlooked its labor. Entertainment workers across film, television, music, and now video games are standing together to have a seat at the table."Related:Game Developer has reached out to Blizzard Entertainment for comment on this story and will update it when a response is issued.Update 8/28: This story has been updated to correctly state the date of the union vote and include Kelly Yeo's name.About the AuthorBryant FrancisSenior Editor, GameDeveloper.comBryant Francis is a writer, journalist, and narrative designer based in Boston, MA. He currently writes for Game Developer, a leading B2B publication for the video game industry. His credits include Proxy Studios' upcoming 4X strategy game Zephon and Amplitude Studio's 2017 game Endless Space 2.See more from Bryant FrancisDaily news, dev blogs, and stories from Game Developer straight to your inboxStay UpdatedYou May Also Like

Peak, the social co-op game from developers Aggro Crab and Landfall, has sold nearly 10 million copies since its release in June, according to numbers from Alinea Analytics. It's remained one of the top-played games on Valve's Steam platform since its release, reaching a peak concurrent player count of 170,759 in mid-August. Peak is immensely popular—and its playerbase keeps growing. Hitting that 10 million milestone would make Peak the second "budget indie," as Alinea Analytics called it, to reach that point—the first was another social co-op game: R.E.P.O. These two titles follow an emergence of social-driven co-op games that have largely been made by independent studios with lower budgets—the likes of Landfall's 2024 Content Warning, horror survival game Lethal Company, multiplayer fishing game Webfishing, and even InnerSloth's social deduction mega-hit Among Us. Social games are nothing new: Multiplayer is a core element of plenty of video games; games like Fortnite, Minecraft, and Call of Duty are often vehicles for chatting with a group of friends. Peak, R.E.P.O, and the like, though are something different.The core appeal of "weirdo social games"Aggro Crab art director Galen Drew told Game Developer that "weirdo social games" like Peak have existed for some time, pointing back to games like Among Us and Lethal Company. There are games you can play with your friends, but these games are ones that are designed around "the experience of hanging out with your friends," Drew said. "It's the expressiveness in the way the characters move and look, and the types of things you can do. It's all just a vehicle to make your friends laugh."Related:Players clearly want that: The top three new games on Steam, by copies sold, are R.E.P.O, social co-op drug dealing game Schedule I, and Peak, according to Alinea Analytics. The firm's estimates suggest that co-op games on Steam brought in $4.1 billion in revenue in the first half of 2025; "the highest six-month total ever recorded for the genre," according to analyst Rhys Elliot. Michael Chu, CEO and co-founder of Treehouse Games, which is making co-op, seafaring survival game Voyagers of Nera, told Game Developer that "there are more great options for co-op games than ever, so the competition feels intense as a developer."He continued: "But a bigger and more diverse audience of players [is] looking to gaming as their favorite way to hang out every year."With that in mind, it makes sense that developers would start to really hone in on that experience—and purpose-build games that give players powerful moments with friends.Related:What to make of "Friendslop"A new term has emerged to describe the growing genre that Peak, Lethal Company, and R.E.P.O find themselves in: "Friendslop." Friendslop was used first in a joke: A Twitter user posted three pictures from Lethal Company, Content Warning, and R.E.P.O and called the genre friendslop. "Its sole purpose of existence is friendfarming," they said. The term—or, maybe, a desire to dunk on it on social media—caught on. Depending on who you talk to, it's used in jest, is insulting to games it's used to refer to, or it's something to embrace. What is uncontested, though, is the demand for games that are built for socialization, experimentation, and silliness with one's buddies."The core of a friendslop game is where the fun of the game comes from stupid stuff you and your friends do, and a lot of it is driven by the mistakes you make," Drew said of Peak. "It's a game where you're all dumb idiots trying to do something difficult and complicated, and failing is the funny part."Aggro Crab and Landfall used the friendslop format but stripped away the horror game roots to make Peak, Drew said. Horror is a good fit for the genre because it adds an inherent pressure that ends up being slapstick comedy. There's a performance element to it, too, Drew said. "Horror is an easy pressure to put on those kinds of challenges, because it's just easy to get people flustered and freaking out and making a mistake that's funny," he said. "In the case of Content Warning, that's a great mechanic, because filming is a good incentive to even, like, perform the funny."Related:For Peak, the collaboration between the Content Warning and Another Crab's Treasure makers, the developers wanted to capture a similar feeling but about surviving with friends. There's no horror element to up the ante; instead, the antagonist is the climb—not any sort of looming monster. The mountains themselves are there to lure the player into taking risks and making mistakes, Drew said. "Almost every item we add is meant to be tempting to use in a way that's dumb," he said. "Generally, we don't add items that are strictly useful—there are a few, obviously, like the piton or rope. But almost all of them have this built in failure point. You still have to place the piton, and it takes time, and you could fall while you're doing it. The rope, you still have to spool out a certain length, and you don't really have a great idea of how much you're spooling out. They're all intentionally chosen so that your friends are yelling at you because you didn't spool out enough rope when they climb."A tonal change for the genreChu told Game Developer that Voyagers of Nera, which is slated for early access in mid-September, will deliver similar sorts of moments. Voyagers of Nera, however, doesn't necessarily fit under the "genre" of friendslop, despite its similarities in goal—to create moments for friends."We built the game to deliver memorable moments with friends (what Peak and Content Warning thrive on), but our game focuses on a different flavor. We wanted to create moments of shared discovery as players explore far off locations together, rescue magical spirits, and battle deep sea monsters. We think there's something romantic and familiar about starting out at the horizon on the ocean and wondering, ‘What's out there?'"Voyagers of Nera isn't necessarily built upon the performance and humor of a game like Peak or Content Warning, but still hinges on gameplay that encourages socialization. Peak and other games more firmly situated in the friendslop world seemingly rely more on sessions than an ongoing experience; Peak's maps rotate every 24 hours, something that Drew said was a technical constraint rather than an intentional decision. But it's a constraint that Drew said plays into the excitement of playing Peak: People want to see and try the different maps. The rotations become like Destiny raids, he said. There's some fear of missing out on some unique experience, but it's not so exclusive that it drives people away—there's always another day. "It will feel like a special thing every time you [play]," Drew added.Voyagers of Nera, on the other hand, is a shared world that lives on a server and up to 10 people per session can come back to it, like Palworld or Rust. Regardless of the differences, though, the core of the experience remains: "Games have become a default way to spend quality time with friends," Chu said. And games that are built to support these relationships are more popular than ever.

At least eight developers have decided to push their projects' publishing dates after Team Cherry announced that Hollow Knight: Silksong is releasing on September 4.Exactly a week ago, the studio shared the news via its own YouTube channel. During the past seven days, multiple developers announced delays for their game and demo releases, directly mentioning Silksong's popularity.At the time of writing, this includes Aeterna Lucis by Aeternum Game Studios, Stomp and the Sword of Miracles by Frogteam Games, CloverPit by Panik Arcade, Demonschool by Necrosoft Games, Little Witch in the Woods by Sunny Side Up, Faeland by Talegames, Megabonk by Vedinad, and Baby Steps, which is being published by Devolver Digital.The release of Little Witch in the Woods initially matched Silksong's. In the delay announcement, Sunny Side Up said it's moving the launch to September 15, given the "immense influence" of Team Cherry's game. "We fear that launching Little Witch in the Woods on the same day would not only dishearten our dedicated team but also disappoint our devoted audience," the studio wrote.'We would not be doing our game any favors by wading into waters we can clearly see are blood red'Both CloverPit and Demonschool, now releasing on September 26 and November 19, respectively, were initially locked in for a launch on September 3, the day before Silksong's release.Related:"Silksong is the most anticipated and wishlisted game on all of Steam and we think people will love this game and play it right at launch (including us) but that also means it will overshadow all games launching close to it," Panik Arcade wrote. Via GamesIndustryBiz, almost 5 million people have wishlisted Silksong. "So if we stick to our original date we would risk the launch of CloverPit a fair bit."Ysbryd Games, the publisher of Demonschool, called the process behind the decision an "anguished consideration," saying that it's "reasonably qualified to say that at any point of 2025 on balance, has been or will be as brutal as market conditions can get" when it comes to picking a release date."Crueler still, that we should find out with such short notice that Hollow Knight: Silksong will launch just one day after our planned release for Demonschool," the publisher added.Via Bluesky, Necrosoft Games said that the delay "was not our choice," but that the studio "understands why the choice was made." Necrosoft said that Ysbryd is paying for the delay. "Dropping the GTA of indies with 2 weeks notice makes everyone freak [out]," the developer added.Related:"We have to remind ourselves that gaining visibility for Demonschool is our main goal," continues the publisher's statement. "Thus, the Ysbryd team strongly believes we would not be doing our game any favors by wading into waters we can clearly see are blood red."The other four games were all slated to release sometime in September, but decided to move either later in the month or directly into 2026, as is the case for Aeterna Lucis.  Out of all developers, Stomp and the Sword of Miracles and Faeland are notable examples, considering both games also fall into the metroidvania genre (similar to Silksong.)Frogteam Games planned to release a demo for Stomp and the Sword of the Miracles on August 29, with a Kickstarter campaign launching on September 12. Now, the developer is unsure about when it'll resume these plans."Trying to market an indie game is already really, really hard," Frogteam wrote. "It's the task of trying to get attention in a deep sea of other amazing games. In the case of Silksong, however, I feel like a little krill trying not to get eaten by a blue whale. Tiny devs like me rely on word of mouth and streamers to bring in visibility, and everyone's gonna be busy with Silksong for quite a while."Related:

Welcome back to another edition of Patch Notes, here on my second (and final) sub-in for its usual author, senior news editor Chris Kerr. This week, we had more layoff news, unfortunately, this time hitting studios like Embracer-owned Crystal Dynamics and Rec Room. Crystal Dynamics, in particular, is suffering its third round of layoffs since being snatched up by Embracer in 2022.Elsewhere, we have some news on Switch 2 development kits, union efforts for many folks working on the Diablo franchise, Atari snatched up a couple of interesting older Ubisoft properties, and we ponder the creative core of  weirdo indie social games.Report: Nintendo reportedly withholds Switch 2 dev kits, directs devs toward OG Switch development insteadVia Game Developer/Digital Foundry // Freshly returned from Gamescom, Digital Foundry senior staff writer and video editor John Linneman spoke with "a lot of developers" that said they're unable to get Switch 2 development kits. The demand is there: plenty of teams want to be crafting games for the Switch 2, but they are reportedly being told to ship for the original Switch and rely on the new console's backward compatibility features.Atari Acquires Ubisoft IP, Including Child of Eden, Grow Home, Cold FearRelated:Via This Week in Video Games // Atari snatched up a number of intriguing Ubisoft properties this week, including the how-on-earth-was-this-a-whole-decade-ago climber Grow Home and its sequel Grow Up, Child of Eden, Cold Fear, and I am Alive. In the post, Atari VP of new business Deborah Papiernik said “Atari has a rich gaming legacy and deep appreciation for these classic titles... We’re excited to see how they’ll evolve and connect with players in fresh, meaningful ways.”Embracer studio Crystal Dynamics is laying off more staffVia Game Developer // As noted above, news of yet another round of layoffs at Tomb Raider studio Crystal Dynamics came in hot this week. Game Developer contributing news editor Diego Arguello writes "This is the third round of layoffs since Embracer Group acquired the studio in 2022. As Embracer issued an absurd number of mass layoffs, project cancellations, and divestments across its portfolio, Crystal Dynamics conducted job cuts in 2023 and early this year.450 Diablo developers vote to unionize under CWAVia  Game Developer // Senior editor Bryant Francis covered the news today with one of my favorite opening lines in Game Developer news history: "The forces of hell are unionizing. Today the Communication Workers of America has announced that over 450 game developers at Blizzard Entertainment who work on the Diablo series have voted to unionize under the CWA."Related:What developers can learn from the indie social co-op games topping the Steam chartsVia Game Developer // In this interview piece from news columnist Nicole Carpenter, the core appeal and breakout success of "weirdo social games" (or, if you please, "friendslop") is examined in great detail by some of the folks working in the genre today.

Game Developer can confirm that Chinese publisher, developer, and studio investor NetEase has shut down T-Minus Zero Entertainment, the game studio founded by BioWare alumni Rich Vogel in 2023.Vogel initially posted on the company's LinkedIn page about NetEase' decision to cease its partnership with T-Minus Zero. "We deeply appreciate NetEase for providing us with both ample runway and support - from helping us find potential investors to giving us the time and budget to develop our game into a fully playable hands-on demo. It has generated a lot of interest."Days later, he told Game Developer that NetEase has shut down T-Minus Zero.T-Minus Zero had been working on a "third-person online multiplayer action game set in a sci-fi universe," according to the company's founding announcement. It appears the project was well-liked by high-level NetEase employees. Former NetEase president of global investments and partnerships Simon Zhu commented on the company's post, stating that the game "delivers [the] great fantasy of fighting against 15th floor kaiju to protect the city you care about."Meanwhile NetEase head of brand/publishing for North America & Europe Cisco Maldonado called it a "super great concept and [in my opinion] a solid market fit" in a post on Vogel's page.Related:A spokesperson for NetEase initially told Game Developer that the company is "actively working with the studio [to] find a new publishing home." They added that the company "cannot confirm any layoffs," and that it was "working with the full studio in terms of this transition and future publishing plans."Said spokesperson offered a follow-up comment after we queried the company about Vogel's statement that the company is shutting down T-Minus Zero. They stated that NetEase has made the "difficult decision" to discontinue funding for the company. "This decision was made with careful consideration, as we have been inspired by our partnership with the studio and their bold vision," they said. "However, we have had to reassess our business priorities and are now working closely with the studio to provide support and explore next steps."NetEase is reversing course on millions of dollars worth of studio investmentsNetEase has spent 2025 unwinding a number of international investments in studios like Skybox Labs, Ouka Studios and Jark of Sparks, also laying off US-based developers working on live service megahit Marvel Rivals. This hasn't been a complete withdrawal. Rebel Wolves and Anchor Point made statements saying they were not affected by a business pivot reported on by Bloomberg News.Related:Update 8/29: This story has been updated with additional comment from NetEase.

CW: This article contains mentions of sexual abuseUbisoft CEO Yves Guillemot has been summoned to appear before the Bobigny District Court on October 1.Via the French news network BFM TV, the company received a subpoena from the Solidaires Informatiques union and four other individuals. This is in relation to the harassment allegations against three former Ubisoft executives during court hearings back in June.A month later, the French court sentenced three former Ubisoft executives to suspended prison terms, with charges including sexual assault and "enabling a culture of sexual and psychological harassment."Specifically, the convictions entail former editorial vice president Thomas François, who was convicted on a charge of attempted sexual assault was handed a suspended three-year term. Former chief creative officer Serge Hascoët was given an 18-month suspended sentence, while former games director Gillaume Patrux received a 12-month suspended sentence.In a statement provided by Ubisoft, a spokesperson said the civil parties and facts are the same as those involved and judged by the court this past June, following an investigation by the Public Prosecutor's Office.The spokesperson also noted that, after that investigation, and "contrary to the civil parties' requests," the Public Prosecutor's Office decided that there were "no grounds to initiate criminal proceedings against Ubisoft or its management," a decision it "confirmed during its closing arguments at the hearing last June."Related:Ubisoft says protecting physical and moral integrity of employees is its 'top priority'The statement goes on to say that Ubisoft will continue to cooperate with the justice system in this matter, "as it has done over the past five years in the review of the facts" related to this case.“Our top priority is to ensure the absolute protection of the physical and moral integrity of its employees, through a policy of prevention and zero tolerance with regard to sexual or moral harassment, sexist behavior, assault, insult, or discrimination of any kind,” Ubisoft executive vice president Cecile Russeil stated.The hearings took place over four days at the beginning of June. As reported by The Guardian, the court was told how the aforementioned Ubisoft executives frequently abused their power to harass and bully employees.The women who previously worked at Ubisoft described how they were subjected to constant comments about sex and their bodies, made to endure sexist and homophobic jokes, and touched physically without consent.Related:During the hearings, François, Hascoët, and Patrux denied all charges. State prosecutor Antoine Haushalter, however, said the case revealed "overwhelming" evidence of harassment within Ubisoft and claimed the video game industry has "systemic" issues with sexism and abuse.The news comes a month after Ubisoft confirmed it laid off 19 people at Ubisoft Red Storm. The redundancies happened four months after securing a $1.25 billion investment from Tencent, and they followed hundreds of job cuts and studio closures over the past year. At the beginning of the year, Ubisoft said it must take "decisive steps" to reshape its business and "drive significant cost reductions."

Diego Argüello, Contributing Editor, News, GameDeveloper.comAugust 26, 20253 Min ReadImage via Rec RoomDeveloper Rec Room, the team behind the namesake user-generated content (UGC) driven social game, has laid off "about half" its staff.Announced yesterday via the official site, CEO and co-founder Nick Fajt wrote that both he and CCO and co-founder Cameron Brown made the decision, which they called a "business necessity based on the financial trajectory of the company" that doesn't reflect on the individuals affected."This is not a reflection on the talent or dedication of those departing—we wish we could keep every one of them," reads the announcement. "I’m gonna say that again, to make it clear this isn’t just 'one of those things you say in a layoff message'. We TRULY wish we could keep every one of these people on the team. But we can't. This is a reflection of the tough reality we face as a business and the change needed to give Rec Room a chance to thrive in the years ahead."According to the post, the laid off workers will continue to be paid for the next three months, receive health benefits for the next six months, and have the option to keep their laptop or desktop computer. Rec Room didn't specify how many people were affected.'The writing on the wall became very clear'Back in December 2021, Rec Room raised $145 million for its social platform, bringing the company's lifetime raised funds to around $294 million. According to Brown, the team invested "heavily in creation tools across PC, VR, consoles, and mobile," but the reality "has been harsh." The CEO claims the mobile and console versions never got to the point where "those devices were good for building stuff." Some of the efforts to bridge the gap, including the Maker AI tool, frustrated the studio's "more impactful creators." Related:At the same time, the lower-powered devices still fostered "millions of pieces of content," which reportedly put a strain on the team that had to come up with procedures to review it all. "Making all this run across every device was a massive technical challenge and burden. While our most skilled creators optimized their content cleverly, most creators didn’t—couldn’t, really, because we didn’t provide them with the necessary tooling."Last month, Fajt announced that Rec Room hit a "record-breaking month" for UGC sales thanks to the creations from players, with creator token earnings from room and Watch store sales increasing 47 percent year-over-year."We deliberately started with a small group of creators as the Avatar Studio tool is still in the early stages," Fajt wrote at the time. "All of the early joiners helped us iron out the workflow and onboarding, providing feedback on how to improve our systems and processes. With creators already finding success, we’re ready to expand."Related:Today's announcement continues by saying that supporting the aforementioned scope stretched the team thin, and began to "dig a financial hole that was getting larger every day." The CEO says the studio has been stuck in an "uncomfortable middle ground" during the past few years, wondering whether to keep pushing the internal UGC vision while potentially increasing the frustration of players and the team, or scale back the vision by cutting the team in half."Both paths were painful," Brown wrote. "But ultimately we got to a point where it was clear that staying the course meant low growth, a high burn rate, and no clear path forward. In a word: Unsustainable. The writing on the wall became very clear."Looking forward, Brown says the team will focus on "empowering our very best creators" and "ensuring Rec Room is a great experience for our players.""For those leaving—you will always be part of the Rec Room story," Brown wrote as a closing note about the layoffs. "We thank you for everything, and wish you the best for your next chapter. For those staying—we know this sucks. We know this hurts. Thank you for pushing forward with us—we have hard work ahead, but with a new focus we believe strongly in the future we can build together."Related:Game Developer has reached out to Rec Room for clarification on the number of workers affected.Read more about:Top StoriesLayoffs & Studio ClosuresAbout the AuthorDiego ArgüelloContributing Editor, News, GameDeveloper.comDiego Nicolás Argüello is a freelance journalist and critic from Argentina. Video games helped him to learn English, so now he covers them for places like The New York Times, NPR, Rolling Stone, and more. He also runs Into the Spine, a site dedicated to fostering and supporting new writers, and co-hosted Turnabout Breakdown, a podcast about the Ace Attorney series. He’s most likely playing a rhythm game as you read this.See more from Diego ArgüelloDaily news, dev blogs, and stories from Game Developer straight to your inboxStay UpdatedYou May Also Like

Developers large and small are reportedly having a hard time getting their hands on development kits for the Nintendo Switch 2. That news comes from the newly-independent Digital Foundry, which discussed the topic on this week's DF Directly Weekly livestream. During the stream, senior staff writer and video editor John Linneman explained that during the team's visit to Gamescom, they spoke with "a lot of developers" that said they're unable to get Switch 2 development kits."So many of them said the same thing," Linneman said in response to a question from the livestream chat. "They want to ship on the Switch 2. They would love to do Switch 2 versions [of their games], but they can't get the hardware." Some of these developers told Digital Foundry that they were told to ship their games on the original Nintendo Switch and rely on the Switch 2's backward compatibility features to be accessible on the new console. As of June 5 2025, the vast majority of Nintendo Switch games are playable on the Nintendo Switch 2 (the major exceptions being the ones relying on custom hardware). However, developing natively for the Switch 2 would help developers optimize their game for the new console's beefier hardware.Writer and video producer Oliver Mackenzie affirmed Linneman's report, saying that there have been "some weird exclusions with some big developers struggling to get kits for games."Related:"There were some weird inclusions as well," he added, explaining that while it's "nice" to see some independent developers have received kits, some triple-A developers aren't "necessarily in the pipeline." (he cited Campfire and No Man's Sky developer Hello Games as an example).Game Developer has reached out to Nintendo for comment and will update this story when a response is issued.

Chris Kerr, Senior Editor, News, GameDeveloper.comAugust 22, 20252 Min ReadImage via Tencent Tencent debuted a new AI creation tool called VISVISE at Gamescom 2025 that it claims will accelerate video game art production by automating repetitive tasks. The Chinese conglomerate billed VISVISE as an end-to-end AI game creation suit that will "dramatically cut down game art design time from days or even months, down to minutes." "With capabilities spanning animation and modeling to the creation of intelligent NPCs, or managing digital assets, VISVISE provides game developers and designers with a complete AIGC-powered toolset to accelerate workflows," it added. Tencent said the tool will specifically allow developers to rapidly skin and animate characters in a matter of minutes—a process it claims usually takes up to three-and-a-half days. In addition, the company claimed skeletal animations can be produced in just 10 seconds with VISVISE. Tencent said that process usually takes between three and seven days. "This results in an eightfold improvement in character skinning throughput and transforms animation into a fully automated process of 'keyframe generation + intelligent in-betweening,'" it continued. Tencent claims it doesn't want VISVISE to replace 'human ingenuity'Tencent Games VISVISE expert Zijiao Zeng delivered a keynote at Devcom (soon to be rebranded as Gamescom Dev) and shared more details on VISVISE's two key core technologies: VISVISE GoSkinning and VISVISE MotionBlink. Related:GoSkinning works by leveraging a universal AI model to automatically adapt to different skeletal structures. Tencent told Game Developer the tool is based on an AI model developed in-house. The company explained GoSkinning achieves around 85 percent automation and uses a two-step process of bone chain prediction and weight refinement, while its proprietary 'Skirt AI' addresses "complex garment deformation issues." MotionBlink, meanwhile, uses a self-regressive diffusion architecture to rapidly generate keyframes combined with pre-trained CVAE and contrastive learning to produce smooth motion transitions that Tencent claims will rival optimal motion capture and eliminate common issues such as foot sliding and jitter. VISVISE tools have already been integrated into the development of over 90 titles, including PUBG Mobile. Addressing the widespread concerns surrounding AI technology and automation, Tencent said it doesn't envision a future in which VISVIE replaces workers and instead explained it views the technology as a "supporting tool." "VISVISE is designed to automate repetitive tasks with human oversight, enabling creative teams to focus on core artistic and design elements that define a great game," a Tencent spokesperson told Game Developer. "Human ingenuity, intuition and connection continue to be pillars of our industry's success, and the keys to developing engaging, emotionally resonant games. With AI, we hope to accelerate creativity, building a collaborative environment where we can continue to create, play and sell quality games."Related:Game Developer attended Gamescom 2025 via the Gamescom Media Ambassador Program, which covered flights and accommodation.Read more about:GamescomAbout the AuthorChris KerrSenior Editor, News, GameDeveloper.comGame Developer news editor Chris Kerr is an award-winning journalist and reporter with over a decade of experience in the game industry. His byline has appeared in notable print and digital publications including Edge, Stuff, Wireframe, International Business Times, and PocketGamer.biz. Throughout his career, Chris has covered major industry events including GDC, PAX Australia, Gamescom, Paris Games Week, and Develop Brighton. He has featured on the judging panel at The Develop Star Awards on multiple occasions and appeared on BBC Radio 5 Live to discuss breaking news.See more from Chris KerrDaily news, dev blogs, and stories from Game Developer straight to your inboxStay UpdatedYou May Also Like

Chris Kerr, Senior Editor, News, GameDeveloper.comAugust 22, 20254 Min ReadVia Evil Empire/UbisoftThe Rogue Prince of Persia developer Evil Empire doesn't believe it's worth entering early access in the current climate unless your project is at least 90 percent complete. Speaking to Game Developer at Gamescom 2025, studio marketing manager Matthew Houghton and art director Dylan Eurlings shared their thoughts on the state of contemporary early access campaigns and suggested the system is becoming increasingly risky. You might recognize Evil Empire as the studio that has spent years helping Dead Cells developer Motion Twin expand the franchise with DLC and free updates. Since May 2024, however, the studio has also been shepherding The Rogue Prince of Persia through an Steam Early Access campaign that culminated in an official launch on August 20.Yet, due to a variety of factors including shifting player expectations, the team had to tweak their pre-release strategy in a bid to lure in players. As a result, the studio has become more wary of early access in general. "To be honest, the way I see it now is that unless you're coming into early access with a 90 percent complete game, don't do it. Because players, they don't see it as early access, they see it a game to play," says Houghton. He adds that players are entitled to express their views because they're often paying money to play early access titles, but he feels that sifting viewpoint means consumers are less willing to follow games on an early access journey that will often result in significant changes. Related:Eurlings echoes that point and suggests that a perceived lack of polish and content can now be a "huge issue" during early access campaigns. He explains that Evil Empire was even forced to rethink their original roadmap after the earliest versions of Rogue Prince of Persia failed to meet internal expectations."Initially we wanted to do quick updates. Very fast. In the end, we took a bit more time to ensure that each update would be a bit more chunky," he adds, noting that pivot resulted in a steady cadence of monthly updates that each packed a fair bit of clout. That shift came after the team conceded that early access numbers "weren't great." Houghton explains the project initially attracted just under 1,000 peak concurrent users (CCU). After they flipped the script, the title started to pull in around 4,000 CCU. "That's why we wanted to prioritize chunky content—there would be an impact every time," says Houghton, before acknowledging the title still hadn't quite met the team's CCU expectations even after that switch-up. Related:"Of course you listen to the feedback and take the ideas [on board], but you have to feed them through a filter."It underlines the risks that come with early access, and Houghton specifically wonders whether some developers who can't hit that 90 percent completion benchmark before launching into early access might instead be better off conducting beta tests through Steam instead. If you're curious as to where Rogue Prince of Persia was when it entered Early Access, Houghton suggests the project was roughly 60 percent complete. Eurlings, was slightly more conservative, and claimed it was more like 50 percent. We suggested they meet in the middle. "Steam has evolved now. You can do beta tests and playtests through Steam. I think that's become more like Early Access. People aren't paying for it and your project might be a bit janky [...] but that's okay because they're still going to give feedback and it's not going to be a disaster if it's not great yet," continues Houghton. When asked whether Evil Empire would consider revisiting Early Access in the future, Houghton isn't so certain."I don't know. I'm going to be honest. I've been put off by it, because especially now people are so used to games coming out and then doing live ops for three, four, and five years—so why go with early access and have to deal with the stigma that's around it? I think I would do playtests and then just release," he explains. Related:Houghton adds that teams who are still convinced early access is right for them must have complete conviction in their creative vision—otherwise they might risk being derailed. "Of course you listen to the feedback and take the ideas [on board], but you have to feed them through a filter, otherwise you'll have too many cooks. [...] You'll have people who are super enthusiastic who think you can't do anything wrong, and then you get the people who are just super negative and people who are just throwing ideas at you that you know won't work in the game." It's a situation that can feel overwhelming, with Houghton explaining that Rogue Prince of Persia's game director found the onslaught "too much" at times. "You have to stick to your vision," says Houghton. "Listen, but just cherry pick [your feedback] carefully."Game Developer attended Gamescom 2025 via the Gamescom Media Ambassador Program, which covered flights and accommodation.Read more about:GamescomTop StoriesInterviewsAbout the AuthorChris KerrSenior Editor, News, GameDeveloper.comGame Developer news editor Chris Kerr is an award-winning journalist and reporter with over a decade of experience in the game industry. His byline has appeared in notable print and digital publications including Edge, Stuff, Wireframe, International Business Times, and PocketGamer.biz. Throughout his career, Chris has covered major industry events including GDC, PAX Australia, Gamescom, Paris Games Week, and Develop Brighton. He has featured on the judging panel at The Develop Star Awards on multiple occasions and appeared on BBC Radio 5 Live to discuss breaking news.See more from Chris KerrDaily news, dev blogs, and stories from Game Developer straight to your inboxStay UpdatedYou May Also Like

Hello and welcome to a new edition of Patch Notes, our friendly (and weekly) news roundup. This is editor-in-chief Danielle Riendeau subbing in for senior news editor Chris Kerr, who has been boots on the ground at Gamescom this week, reporting from the show floor and generally getting down to business. It's been a busy week at Gamescom and far beyond, so without further ado, here are a few of the stories that have made the biggest splash in the last few days.2K is 'reducing the size' of BioShock 4 developer Cloud ChamberVia Jason Schreier on Bluesky/Game Developer // Bloomberg's Jason Schreier dropped the news on Bluesky this week, reporting on layoffs at Cloud Chamber, 2K's studio tasked with the next BioShock game. The news came a couple of weeks after Schreier's own report that a build of the game failed a publisher review, and employees were reportedly fearing for their jobs in the aftermath. A memo listing the layoffs also announced that Rod Fergusson would take over as Cloud Chamber's studio head, a strange mirror to the time he came in towards the end of the last BioShock's development to get it over the line.Update: Microsoft shuts down questions about layoffs and Israel ties at Gamescom 2025Via Game Developer // In the original story, your usual Patch Notes author attempted to ask a developer what it was like to work with Microsoft during a turbulent time (given the company's recent mass layoffs, and controversy around its ties to the IDF's military surveillance agency), but the company's spokespeople quashed the question. Eventually, Microsoft offered more of a comment, which you can read in the updated story.Related:Unknown Worlds files lawsuit against ousted founders for allegedly downloading over 170,000 confidential filesVia Game Developer // The Unknown Worlds/Krafton saga has heated up once again, now with the conglomerate filing suit against the former team leaders, saying Cleveland, McGuire, and Gill downloaded "substantial volumes" of undisclosed confidential company information as they left. It's an increasingly complicated tale, broken down step-by-step here in the story.Frost Giant CEO Tim Morten says layoffs are possible after Stormgate underperformsVia Game Developer // Reporting from Gamescom, Chris Kerr highlights a very candid conversation with Frost Giant's Tim Morten, acknowledging that its RTS Stormgate "underperformed" and the team might need to contract as a result. Has Tides of Tomorrow cracked the narrative multiplayer formula?Via Game Developer // In this feature from Tuesday, our senior editor Bryant Francis interviewed the team at Digixart (creators of Road 96) on the creation of their upcoming Tides of Tomorrow and its promising take on narrative multiplayer.Related:

An anonymous Arkane developer is alleging that Microsoft—the studio's parent company—has yet to issue any response to an August 12 open letter signed by workers calling for an end to its alleged relationship with the Israeli military. That relationship was uncovered by news outlets The Guardian, +972 Magazine, and Local Call in a joint investigation that alleged the Israeli spy agency Unit 8200 has used Microsoft's Azure cloud platform to surveil phone calls made by Palestinians in Gaza and the West Bank.The Israeli Defense Forces (IDF) have reportedly used information from those calls to coordinate airstrikes and "shape operations" of military forces in both regions. Arkane employees unionized under Syndicat des Travailleureuses du Jeu Vidéo (STJV) joined other Microsoft employees in protesting these contracts—but the only answer they've received is silence.This information comes from Stephen Totilo at Game File, who spoke with an anonymous Arkane developer who went by the pseudonym "Manon." "No one has responded directly to our open letter, neither Microsoft, nor Bethesda, nor Arkane leadership," Manon told Game File. He said that the only acknowledgement came after the subject was brought up on the studio's internal chat system. "Arkane leadership invited everyone to be considerate when expressing their opinion, to maintain a peaceful exchange on the subject. They did not address the letter itself and remained neutral."Related:That silence has persisted over the past 10 days. Manon said that Microsoft was given a few hours' advance notice that workers were going public with their concerns. Despite that extra time, it's issued no internal response.Xbox has kept quiet on Microsoft's military contractsOn April 15, Microsoft announced it was undertaking a "formal review" of its contracts with the IDF. But even as more game developers join the ranks of employees protesting its role in the Gaza invasion, Xbox Game Studios has stayed strictly silent on the matter. The company only replied to our repeated quests for comment after Game Developer senior news editor Chris Kerr raised the topic during during our interview with Grounded 2 game director Chris Parker and Eidos Montreal creative director Justin Vazquez at Gamescom this week.During that conversation, PR representatives did not allow Vazquez and Parker to answer the question, later referring us back to Microsoft's April 15 blog.Said representatives also discouraged questions about Microsoft's decision to lay off over 9,000 employees on July 2, many of them employees of Xbox Game Studios subsidiaries like King and Zenimax. These layoffs also impacted the timing of the open letter published by the STJV workers at Arkane. Manon told Game File that the group was concerned the letter would be "muted" by the layoff news.Related:"Since then, it has been very difficult to find the correct timing, knowing that the situation in Gaza was deteriorating rapidly."Game Developer has reached out to Microsoft for comment on this story and will issue an update after the company responds.

System Era Softworks design director Liz England never set out to become an industry-wide name—but she did in 2014 when she published a blog called “The Door Problem.” She penned it to help people outside the game industry understand exactly what a game designer does…and it turns out, to motivate herself to get her personal website online.Years later "The Door Problem" is now required reading for young designers everywhere, largely for reasons beyond what England dreamed of when she jotted down that post. In the 11 years since she wrote that post, Liz has evolved from being a game designer to design director, and her perspective on “The Door Problem” has shifted. Today she’s not thinking as much about doors—more about how to help other designers pitch and build doors that fit the scope and vision for their game.What does good leadership look like in game design?England said she didn’t think there was any more to be added to “The Door Problem” even after 11 years. She’s been thinking more about how game design leadership can help developers solve their own “door problems” to make games in a more effective manner. That's not only meant improving her language for designing game design challenges—but looking back at leaders she looked up to earlier in her career.Related:About The Game Developer PodcastThe Game Developer podcast is a bi-weekly podcast chronicling the triumphs, catastrophes, and everything in-between of game development, sharing lessons and strategies fellow developers can use to hone their craft. The Game Developer Podcast is hosted by Bryant Francis, edited by Pierre Landriau, and features music by Mike Meehan.Follow Game Developer on Bluesky or on LinkedIn.Follow Liz England on Bluesky.

Team Cherry, developer of Hollow Knight, has announced a release date of September 4 for the long-awaited sequel, Hollow Knight: Silksong.Over 300,000 concurrent viewers gathered to watch the announcement via Team Cherry's YouTube channel earlier today. At the time of publication, roughly three hours later, the video has over 1.4 million views and counting.The numbers above encapsulate a fraction of the popularity around the sequel, which was announced back in 2019, two years after the release of Hollow Knight, which is a sprawling action-adventure game. Team Cherry hasn't run an extensive marketing cycle, aside from sporadic appearances in video game showcases from Xbox, Nintendo, and Gamescom. For a while, before any conference, people turned to the meme of expecting news of a release date for Silksong. This included industry figure Geoff Keighley, who joked about it on Monday of this week via X (formerly Twitter), ahead of his hosting Gamescom Opening Night Live, which took place on Tuesday.Team Cherry seems unaware of what Jira isHollow Knight sold over 2.8 million copies by 2019, two years after its release. It was, by all means, a successful launch for Team Cherry, an indie development team consisting primarily of three people. But the popularity continued to snowball from there. As of today, according to an interview with Bloomberg, Hollow Knight has sold 15 million copies.Related:Silksong has been in development for seven years now. When asked about why the dev cycle has taken this long, Team Cherry co-founders Ari Gibson and Willian Pellen said that they've been having fun, and that the project has been a vehicle for their creativity."It was never stuck or anything," Gibson told Bloomberg. "It was always progressing. It's just the case that we're a small team, and games take a lot of time. There wasn't any big controversial moment behind it."The idea for the sequel came from designing a DLC that progressively grew in scope, until the team realized that it could become a separate title altogether. According to the devs, that growth continued over time—in 2022, Team Cherry featured Silksong during an Xbox event that promised that all of the games shown would be out within a year. But that wasn't the case."I think we're always underestimating the amount of time and effort it'll take us to achieve things," Gibson told Bloomberg. "It's also that problem where, because we're having fun doing it, it's not like, 'It's taking longer, this is awful, we really need to get past this phase.' It's, 'This is a very enjoyable space to be in. Let's perpetuate this with some new ideas.'"Related:According to Team Cherry, maintaining the team small saved them from having to manage and delegate, even if that led to extended production time. The co-founders are joined by programmer Jack Vine, composer Chris Larking, and "a few contractors" who helped with programming and testing."We don't want to mess with the formula and then find out it's not fun," Gibson said. "I used to manage teams in past lives. I don't really want to do that ever again."This methodology has allowed for a distinct approach to developing a game, to the point where the team seems unaware of task-management applications. Gibson asked "What is Jira?" when prompted if they had used it at some point. Meanwhile, Pellen wondered "Is it software?" and added that the team briefly used Trello before their account was deactivated for lack of use.

Chris Kerr, Senior Editor, News, GameDeveloper.comAugust 15, 20254 Min ReadImage via GamescomGamescom 2025 is less than a week away and the annual industry showcase has broken a deluge of records before a single person has stepped foot inside the cavernous halls of the Koelnmesse. The five-day event, which brands itself as Europe's leading trade fair for digital games culture, will host over 1,500 exhibitors from 72 countries in 2025. It's a notable first that organizers say will comprise the most diverse lineup in Gamescom history. To accommodate burgeoning exhibitor interest, Gamescom 2025 is expanding its footprint to a record 233,000 square meters. Record registration numbers mean it's a smart move, with last year's event attracting 335,000 visitors. Opening Night Live, the digital and in-person show that kicks off the event with a deluge of video game announcements, has also been moved to Hall 1 for the first time. The switch means 5,000 people will be able to attend in-person—although the showcase will also be streamed online for a global audience.Felix Falk, managing director of game—the German games industry association that owns the Gamescom brand and co-organizes the event with Koelnmesse—described interest in the show as "immense," but why has Gamescom flourished in the years following the pandemic when another major industry event that went by the name of E3 fell into ruin? Related:Speaking to Game Developer earlier this week, Falk suggested Gamescom weathered that storm and emerged stronger because organizers understood the importance of establishing a digital footprint even before COVID-19 left the world in stasis. Opening Night Live was part of that push to attract a global audience via the power of streaming, and Falk explained that almost 50 million people watched last year's Geoff Keighly-fronted opening salvo. That's a lot of eyes on the Gamescom brand. Falk said the pivot to a hybrid digital-meets-physical event that included online communities meant Gamescom was in "good shape" before the pandemic. But what about post-COVID? In a world where major publishers are by no means guaranteed to attend in-person events—largely because the likes of Nintendo, Sony, and Microsoft have all taken to saving their biggest announcements for their own digital directs—where is the value in meeting face-to-face?Gamescom organizer says face-to-face events close the 'emotional distance' between  developers and consumersFor both exhibitors and consumers, Falk suggested there is an "emotional" aspect to attending events in-person that is tough to replicate digitally." Related:"Being on-site is a totally different experience and much deeper and much more worthy for the companies and the games, compared to the digital format," he said. "You can see that if you head to the indie area, which is the biggest indie area we've ever had, and there you'll normally find the developer stood next to the game. You can talk to them—and they love the feedback. Of course, you could do a survey online and get feedback that way, but it's different from talking to each other." In short, he explained that in-person events close the "emotional distance" between developers and players to create experiences that simply cannot be replicated online. Falk described digital events as "fast" and "dynamic" by contrast, which makes them a unique proposition in their own right. So, by cultivating an online presence and letting people engage with the show virtually, Falk claimed Gamescom managed to become a "platform for the whole industry.""[The hybrid setup] means you do find target groups and communities you normally don't reach," he added. "You also reach media or stakeholders who wouldn't normally come to your specific showcase, because you're a part of the biggest show worldwide for gaming."Making digital inroads also allows Gamescom to expand without stretching the in-person event to a breaking point. Discussing what long-term success means for the showcase, Falk explained he doesn't believe Gamescom will live or die based on "one KPI of scale." Related:In fact, he said organizers have been intentionally limiting attendance in Cologne to preserve the atmosphere of the show. "We don't want the atmosphere to be worse because we squeeze in too many people," he continued. "We could squeeze more in—which we don't—because the quality of the experience is important for the fans." Still, there is room for measured growth. Falk noted the record number of exhibitors was possible because there is still room to expand the show floor, but reiterated that "more" isn't the overarching plan. "We have more exhibitors than ever before, which is great because we still have space to grow, but [success] is more about variety and diversity of content," he added. "It is not our aim to grow, grow, grow—because that doesn't make sense. It's more about the quality and most importantly the digital reach, which we have seen over the last few years is exponentially growing." Gamescom is also expanding into other regions such as Latin America and Asia, but we'll have more on that particular topic next week. Stay locked on Game Developer for more.Game Developer attended Gamescom 2025 via the Gamescom Media Ambassador Program, which covered flights and accommodation.Read more about:Top StoriesGamescomAbout the AuthorChris KerrSenior Editor, News, GameDeveloper.comGame Developer news editor Chris Kerr is an award-winning journalist and reporter with over a decade of experience in the game industry. His byline has appeared in notable print and digital publications including Edge, Stuff, Wireframe, International Business Times, and PocketGamer.biz. Throughout his career, Chris has covered major industry events including GDC, PAX Australia, Gamescom, Paris Games Week, and Develop Brighton. He has featured on the judging panel at The Develop Star Awards on multiple occasions and appeared on BBC Radio 5 Live to discuss breaking news.See more from Chris KerrDaily news, dev blogs, and stories from Game Developer straight to your inboxStay UpdatedYou May Also Like

Chris Kerr, Senior Editor, News, GameDeveloper.comAugust 14, 20253 Min ReadLogo via Embracer Group / Kingdom Come Deliverance screenshot via Warhorse StudiosEmbracer Group—which is in the process of splitting into three standalone companies following an era of mass layoffs, project cancellations, and divestments—has confirmed it will explore "targeted cost initiatives" and look to streamline processes with the help of AI technology during what CEO Phil Rogers described as a "transition year" for the Swedish conglomerate.Addressing investors in the company's latest fiscal report, Rogers said Embracer's performance during the first quarter of the current financial year was "quiet" and said the company must now focus on "operational and strategic execution" to position itself for long-term growth.Consolidated net sales decreased by 31 percent to SEK 3,355 million ($350.5 million) during Q1. Breaking that total down by operating segment, PC/Console Games decreased by 38 percent to SEK 1,641 million; Mobile Games decreased by 63 percent to SEK 520 million; and Entertainment & Services increased by 41 percent to SEK 1,193 million."As we move forward, we are taking a conservative approach for this current year, reflecting a measured view on the timing and performance of our PC/Console release schedule in addition to potential continued softness in our catalog following Q1," said Rogers, who officially stepped up as CEO on August 1, 2025, to allow outgoing chief exec Lars Wingefors to take on the mantle of executive chair. Related:"This year is a transition period as we lay the foundations of Fellowship Entertainment and focus on building a business led by key IP and empowered teams, in a structure enabling focus and operational discipline. It is paramount that we concentrate on the quality and long-term value of our releases rather than chasing short-term gains."What does that mean for Embracer employees? According to Rogers, the company will implement "targeted cost initiatives" relating to underperforming business. Those initiatives could potentially result in more divestments. Game Developer has reached out to Embracer to clarify whether those plans could potentially include layoffs.Embracer CEO believes AI will become an "increasingly supportive force"Rogers claims Embracer is facing a "pivotal moment" and must double down on its biggest franchises. He explained the company has increased capital allocation to its core IPs, which include The Lord of the Rings, Tomb Raider, Kingdom Come Deliverance, Metro, Dead Island, Darksiders, and Remnant. He believes those franchises represent "one of the most exciting IP portfolios in the industry" but said Embracer must now "sharpen" its focus. The company currently has nine triple-A titles slated for release, excluding projects being financed by external partners. Related:"As previously noted, one or a couple of these games will most likely slip into FY 2028/29, but we do see a clear increase in release cadence as compared to our average of just over 1 AAA game per year in the past five years," said Rogers, discussing that release slate. "We expect the increased released pipeline in combination with lower fixed costs will notably improve free cashflow FY 2026/27 onwards."As Embracer prepares to evolve into Fellowship Entertainment, Rogers said the company must significantly rewire its business to create a "powerhouse unit" within its PC and console division. According to Rogers, leveraging AI technologies will be  integral part of that process. His predecessor had already suggested that ignoring AI tools could lead to it being "outrun" by its competitors. "This comes through smarter collaboration, increased streamlining, shared services and with AI as an increasingly supportive force," Rogers continued. "These factors will be key to unlocking value and expanding margins." As the table below shows, Embracer has already significantly reduced its workforce following a number of layoffs and key divestments. Related:Its entire workforce totaled 7,228 people (including 5,452 game developers) as of June 2025. That a notable decrease on the 13,712 workers (and 10,713 game developers) it employed at the end of June 2024. The company currently has 116 video games in development—down on the 127 projects it had in the pipeline this time last year, but actually up on the 108 titles it showcased in March.Read more about:Embracer GroupGenerative AI, Machine Learning, & LLMsTop StoriesAbout the AuthorChris KerrSenior Editor, News, GameDeveloper.comGame Developer news editor Chris Kerr is an award-winning journalist and reporter with over a decade of experience in the game industry. His byline has appeared in notable print and digital publications including Edge, Stuff, Wireframe, International Business Times, and PocketGamer.biz. Throughout his career, Chris has covered major industry events including GDC, PAX Australia, Gamescom, Paris Games Week, and Develop Brighton. He has featured on the judging panel at The Develop Star Awards on multiple occasions and appeared on BBC Radio 5 Live to discuss breaking news.See more from Chris KerrDaily news, dev blogs, and stories from Game Developer straight to your inboxStay UpdatedYou May Also Like

I'll level with you. I'm keeping this intro brief because I'm currently plonked in the middle of a Manchester cafe that presumably doesn't realize the words 'air' and 'conditioning' can be combined to create a majestic climate control device. Fear not, dear reader, it's only a heatwave.This will be my final Patch Notes for a couple of weeks. I'll be jetting off to Cologne next Tuesday for my annual pilgrimage to Gamescom in pursuit of industry insights, decadent hummus (if you know you know), and perhaps even a bit of juicy gossip.  I'll be taking a much needed vacation when I return, so the next couple of editions will be penned by another member of our talented Game Developer team. Who exactly? No spoilers yet (mainly because we haven't decided).Oho. You almost got me rambling. Nobody needs that today—least of all you. In fact, I suspect what you really need is a concentrated dose of NEWS, and as luck would have it we have just the thing...Embracer will deploy 'targeted cost initiatives' and AI tech to unlock more valuevia Game Developer // You might not realise it from the headline, but layoff connoisseur Embracer Group recently switched out its CEO, Lars Wingefors, for a new chief executive in Crystal Dynamics veteran Phil Rogers. Alas, it seems the apple hasn't fallen far from the tree. Rogers this week told investors that Embracer will deploy 'targeted cost initiatives' in relation to underperforming business. He confirmed that could mean additional divestments are in the offing. Will we also see layoffs? Who knows, but Embracer has been rather trigger happy in that regard previously. Rogers also explained that Embracer is keen to use AI technology to streamline its processes and support its teams. I'm sure they'll be thrilled.Related:Stripe Says Support Team Reps Were ‘Totally Wrong’ About LGBTQ Content Banvia Aftermath // Payment service provider Stripe has denied it is prohibiting the sale of LGBTQ+ content, including video game and media on platforms like Itch. The company spoke to Aftermath about the situation after its support team reportedly told anti-censorship campaigners that it won't be processing payments related to LGBTQ+ content. Stripe apologised for the conduction and claimed those employees were "mistaken." The full story is well worth a read, and comes after both Itch and Steam began heavily moderating the sale of adult content, reportedly at the behest of payment providers.Valve explain why using PayPal for Steam purchases isn't currently an option in a whole bunch of countriesRelated:via RockPaperShotgun // In related news, Valve recently told RPS that PayPal support for Steam has evaporated in some regions due to concerns over the type of content being sold on the platform. Valve previously confirmed that one of PayPal's acquiring banks axed support in some regions in early July, impacting consumers attempting to make Steam purchases via PayPal in currencies other than EUR, CAD, GBP, JPY, AUD and USD. On its support page, Valve said it is "uncertain" when the situation will be remedied. It then told RPS the withdrawal is "regarding content on Steam, related to what we’ve previously commented on surrounding Mastercard."Blizzard's Story and Franchise Development team has unionizedvia Game Developer // Another week, another union. We could get used to this. Blizzard's Story and Franchise Development (SFD) is the latest Microsoft-owned team to unionise in tandem with Communications Workers of America (CWA). SFD is the World of Warcraft maker's in-house cinematic, animation, and narrative department—and became the first union of its kind to form n North America. Parent company Microsoft has already recognised the union, whose members will join CWA Local 9510 in Orange County, Calif.  One member of the SFD organising committee said the unionised workers intend to preserve what makes Blizzard special. Related:Video games have a serious crediting problem, but unions can helpvia Game Developer // Speaking of unions, freelance reporter Nicole Carpenter this week laid out how the power of collective acton could enable the video game industry to address a longstanding miscrediting issue. It's not uncommon for developers (both in-house and external) to be omitted or improperly credited on projects they've worked on. It's a deeply harmful practice that can stall careers and create uncertainty as to who is actually making the games we play, but what is the solution? According to some people, unions might just hold the answer.'We would be in development for 30 years:' Krafton reiterates that Unknown Worlds founders 'abandoned' Subnautica 2via Game Developer // In what must be one of the game industry's most outrageous legal tit-for-tats, Krafton has responded to the lawsuit levelled against it by Unknown Worlds' former executive team with a series of claims that paint former studio leaders Charlie Cleveland, Max McGuire, and Ted Gill as cash-grabbing truants. The South Korean publisher once again insisted that all three downed tools as soon as it purchased Unknown Worlds and placed their own "monetary interests" over those of the development team and Subnautica 2 itself. We've done our best to summarise the scathing rebuttal, and we expect this saga is far from over. 'Microsoft has no place being accomplice of a genocide:' Arkane union workers demand Xbox maker sever ties with Israelvia Game Developer // A group of unionized Arkane Studios workers in France this week published an open letter to leaders at Xbox and Microsoft to lend their support to the Palestinian-led BDS movement and demand their parent company sever ties with Israel. The move follows extensive reporting that indicates Microsoft cloud and AI technology is being used by the Israeli regime to monitor Palestinians and even plan military action. Union workers at Arkane, known for producing titles like Dishonored and Deathloop, accused Microsoft of being an "accomplice" to genocide. "Microsoft has failed both its teams & its customers by being actively complicit of the invasion and war crimes happening in Gaza," they wrote in the open letter. Microsoft has yet to respond to our request for comment, but has previously denied that its products have been used to "target or harm people" in Gaza. Bandai Namco is still working on new in-house game engine, update revealsvia Automation Media // Tekken and Ace Combat maker Bandai Namco is still working hard to create a new in-house game engine capable of supporting large-scale projects and open worlds. You might not even be aware this project was even in motion, and that's because it's been around three years since the Japanese company last spoke about the initiative. This week, however, the company posted a series of photographs on X to reveal it has been training employees how to use the mystery engine. It's hard to glean much from the snaps, although we can see what appears to be an ecstatic snowman in one shot. 10/10. No notes.PUBG is finally bidding farewell to last-generation consoles via Krafton // Pour one out for PUBG: Battlegrounds players who've yet to make the leap to current-generation hardware. This week, Krafton announced it will be ending support for the battle royale shooter on PlayStation 4 and Xbox One in November. The company said the shift will take place on November 13, 2025, and described it as a "necessary step toward aligning PUBG Console with current-gen consoles" and providing player with "more stable gameplay." Remarkably, the news comes around five years after both the PlayStation 5 and Xbox Series X | S hit shelves, which shows just how blurred the lines between console generations have become in the current era. Even so, Krafton said the news is weighing heavily on the team and has requested a modicum of understanding during this trying time

Blackbird Interactive, developer of Homeworld 3 and Minecraft Legends, has reacquired full intellectual property rights of Hardspace: Shipbreaker.Announced today, the developer now has full ownership of the IP. Originally, the game was brought to market in partnership with Focus Entertainment, which not only assisted as publisher but also acquired partial ownership of the IP.According to the announcement, Blackbird isn't ready to share specifics aside from there being "multiple Hardspace projects" currently in development, paving the path forward to flesh out the IP into a franchise. According to a financial report issued in June 2022 by Focus Entertainment, Hardspace: Shipbreaker had sold over 500,000 copies in its two years in early access.It's been a year since Blackbird Interactive talked about a "realignment plan"Hardspace: Shipbreaker has been a standout release for Blackbird. In recent times, however, the team has undergone layoffs and leadership changes internally.As reported by Business in Vancouver, where the studio is based, founder Rob Cunningham transitioned from the CEO role to board chairman back in March of this year, with Eric Torin taking over the helm after his tenure as chief strategy officer. This is reflected in Blackbird's official site.Related:The news came around a year after Blackbird made layoffs due to "economic pressures" beyond its control, claiming the cuts were part of a wider "realignment plan" that was implemented after some of its partners shelved in-development projects. "We looked at multiple ways of avoiding this and regretfully other options weren't viable," a Blackbird spokesperson said at the time.The layoffs followed another round of job cuts that took place in August 2023, which affected 41 staff members. Months later, Mojang pulled the plug on Minecraft Legends. 

Danielle Riendeau, Editor-in-Chief, GameDeveloper.comAugust 14, 20253 Min ReadVia PayPalValve says that one of PayPal's acquiring banks has pulled support for Steam purchases due to content concerns, impacting consumers who shop on the platform using certain currencies. The company offered the explanation to Rock Paper Shotgun (RPS) and said the withdrawal of support "is regarding content on Steam, related to what we’ve previously commented on surrounding Mastercard".Valve maintains that Mastercard used intermediaries (like payment processors and their intermediary banks) to force it to restrict the sale of NSFW and adult content. Mastercard denied this in a brief statement in early August.A Valve spokesperson confirmed the connection between that ongoing controversy and today's news. In this case, one of PayPal’s acquiring banks decided to stop processing any Steam transactions, which cut off PayPal on Steam for a number of currencies," they told RPS.On its website PayPal defines an acquiring bank (or merchant acquirer) as the bank that "receives the payment authorization and collects the customer’s funds on behalf of the business.""It can be easy to confuse the merchant acquirer vs. payment processor. Basically, the merchant acquirer is the bank that accepts the payment from the customer. But the payment processor does the heavy lifting of actually authorizing and completing the transaction," adds that explainer. "Some platforms, like PayPal, can act as both processor and acquirer, completing your business transactions and securely storing your money in one place."Related:Providing more context on the Steam Support page, Valve said the sudden termination will affect Steam purchases using PayPal in currencies other than EUR, CAD, GBP, JPY, AUD and USD.In an FAQ, Valve offered additional details:"We hope to offer PayPal as an option for these currencies in the future but the timeline is uncertain," Valve wrote. "We are also evaluating adding additional payment methods on Steam for the customers affected by this. In the meantime, please use one of our other current payment methods during checkout. If you can't use any of the available options, you can consider using a Steam Wallet code to add funds to your account."The IGDA warned against "creative suppression" on game platformsAfter the waves of controversy resulted in games being pulled or delisted from Steam and indie platform Itch.io, the IGDA put out a statement condemning the practice, calling it a form of "creative suppression" that harms certain creators unfairly."Games that feature consensual adult content, including queer, kink-positive, or romantic narratives, are easily targeted under vague or overly cautious enforcement, often forcing developers into silence or self-censorship because platforms fear perceived risks associated with hosting legal adult content," said the IGDA.Related:It also noted that safeguards are already in place on some platforms and had policy recommendations in hand for the future:"We urge platforms, payment processors, and industry leaders to engage in dialogue with developers and advocacy organizations. We welcome collaboration and transparency. This issue is not just about adult content. It is about developer rights, artistic freedom, and the sustainability of diverse creative work in games," continued the organization.Read more about:SteamAbout the AuthorDanielle RiendeauEditor-in-Chief, GameDeveloper.comDanielle is the editor-in-chief of Game Developer, with previous editorial posts at Fanbyte, VICE, and Polygon. She’s also a lecturer in game design at the Berklee College of Music, and a hobbyist game developer in her spare time.See more from Danielle RiendeauDaily news, dev blogs, and stories from Game Developer straight to your inboxStay UpdatedYou May Also Like

Fateless, developer of the upcoming RPG game Godforge, has completed a second funding round of $8 million.Announced earlier today, the second round brings the total amount raised to $14 million. According to Fateless, the investments have been driven largely by HH Gaming and HellHades community members. For reference, Fateless was founded by former content creator and co-founder of HH Gaming, Simon "HellHades" Lockerby and fellow co-founder Dan "Phixion" Francis, alongside Skeleton Hand CEO Hisham "Sham" Saleh.Lockerby mentioned that the team's YouTube channels, website, Discord, and social medial channels make up for "over 2 million players," a number that's giving the team confidence around Godforge. The game recently entered its alpha period and is scheduled to launch during Q1 2026.Angel investors from within the content creator community helped to establish Fateless in around 10 weeks"More importantly, the community has already expressed great belief in the game by helping us raise funds of $6M (USD) during our initial startup phase and was a major contributor to our latest round," Lockerby said during the announcement.In an interview with Secret Stash, a podcast hosted by Archie Stonehill and Justin Kan, Lockerby specifically mentioned that the $6 million figure was raised "in like a 10-week period from angel investors within the community," rather than through a crowdfunding campaign or similar, which helped the content creators to build out the studio.Related:According to statistics shared by Fateless via LinkedIn about the first wave of the Godforge alpha period, 4,421 players logged in over a period of 3 days, logging a total of 45,776 play hours.This hasn't been the first time content creators have decided to jump into game development. A notable example includes YouTuber Jason Gastrow, known as Dunkey, who established a new game publishing label called Bigmode in September 2022. Since then, the label has worked with Team D-13 and Billy Basso for the releases of Star of Providence and Animal Well, respectively.

It shouldn't be so hard for developers to receive credit for their work. Industry activists have been campaigning for years to create standardized crediting practices but the problem persists. Many developers still aren't being recognized for their contributions and it is a debilitating issue. It's not just a case of someone not seeing their name in lights. It's a practice that can hamper careers—especially those of industry newcomers who might be asked to prove they've worked on a shipped game.Localization and translation specialist Tamara Morales recently told Game Developer that freelancers, too, rely heavily on credits to bring in more work and show their experience. It's like a resume. Proper crediting is crucial for game workers that have been pushed to the margins, like contract workers or external teams.Unions could help standardize the crediting process and guarantee compliance.The struggle for developers to get proper recognition for their work in the industry has been well-documented. Often, individuals working for external support teams, like localization or quality assurance, will be omitted. Sometimes, studios will leave out the names of people who departed ahead of launch. Improper crediting doesn't always mean a person can't list a project on their resume, but it's—at best—unfair to the developers who worked on the game and aren't credited and, at worst, actively hampering careers. The impact varies from person to person and studio to studio—there’s a ton of inconsistency—but the problem remains pervasive.Related:Union contracts can deliver 'tangible, positive change across the industry'Nazih Fares, the vice chair of the International Game Developers Association's (IGDA) game credits special interest group, told Game Developer that while working as a public relations contractor for major game companies, they'd been left out of the credits for more than 50 games they supported. Their first game credit for Metal Gear Solid 5 was a 'special thanks' at the end of the roll call—something that didn't accurately represent the scope of their contributions.When they began specifically asking for credits, they were told the studio that had solicited their services didn't include external developers in their credits. "It was frustrating to be in that situation, and I knew that I wasn't the only one," Fares said. "It wasn't just me."The IGDA's game credits group published a lengthy paper on the best practices for game crediting in 2023, which includes standards that define an "inclusive" crediting philosophy. The group even built tools in Unreal Engine to streamline the task of importing credits into a game.Related:Industry consultant Tarja Porkka-Kontturi told us several studios have adopted those IGDA guidelines, but that "widespace implementation is still absolutely lacking."The problem is that the IGDA can't force companies to implement a standardized process—but contracts can. "I firmly believe that if unions and developers collaborated to embed fair crediting practices—such as the ones we've outlined in the IGDA Game Credits Guidelines—into collective agreements, it would bring tangible, positive change across the industry, globally," Porkka-Kontturi said. "As mentioned, this kind of inclusion in union contracts would not only strengthen the position of workers but also give studios a clear, standardized process to follow."Freelance writer and narrative designer Anna C. Webster also suggested unions can provide a pathway to standardization. "[Credits] are critical," she said. "Being properly credited on a title is essential to our individual careers as workers, and also just general fairness. Being able to say, 'Hey, I worked on this,' is important to show the work you did and not undercut labor in any way."Related:Webster is a member of the United Video Game Workers-Communications Workers of America's (UVW-CWA) organizing committee and the interim chair of the freelancing and contractors issues' committee. She said the standardization of video game credits is something the freelancing committee is particularly interested in. Hollywood unions, like the Writers Guild of America or the Producers Guild, have built out and enforced crediting rules. The video game industry doesn't have any overarching bodies to do that—so companies are still able to follow their own whims.Sega and ZeniMax unions successfully bargained for standardized crediting practices The Communications Workers of America told Game Developer that several video game industry unions, like Sega of America and ZeniMax Workers United, have already bargained for standardized credits in their contracts. Sega of America's contract, for instance, requires the company to credit all workers that contribute to its games—including "early QA testers."ZeniMax Workers United has two pages dedicated to crediting practices in its signed contract agreement. It sets out the following attribution guidelines:a) The Employer will credit all bargaining unit employees who are assigned (or ancillary) to the title and are employed 90 calendar days before a project’s full public release date. Anyone not employed 90 days minimum before the projected full release date will appear in “Special Thanks”, “Additional Credits” or some other equitable designation.b) Bargaining unit employees must work on the title for at least 30 calendar days before the credit lock date. Contributors below this threshold will appear in “Special Thanks”, “Additional Credits” or some other equitable designation.c) Bargaining unit employees will be credited by their lived name (first and last) and their role or nature of work at the time credits are created. In the event a bargaining unit employee updates their lived name with Human Resources, the Employer shall then update the publicly accessible list of credits, if available. Changes or updates to in-game credits will be at Management’s discretion.d) Credits shall be updated with credit given to those who meet these criteria for additional major releases related to the game (large updates, DLC, etc).The contract also has a section that lays out the visibility of credits, too. The credits have to be made available to anyone who plays the game, regardless of whether or not they've completed it. There's even a process that outlines how the company must be informed if mistakes are made, and if they want to change how their name appears. (The contract doesn't have any process—aside from being "at the employer’s discretion"—on how people who no longer work there can have theirs changed).Unions, then, have both collective worker power and legal strength to push back on a multitude of issues, including crediting problems. The union has resources that an individual may not, meaning workers don't simply have to trust an internal policy. They can also garner widespread cross-industry support. UVW-CWA, unlike the unions under Sega of America and ZeniMax, is a direct-join union. That means any game worker can join its ranks, regardless of where they work or whether they’re a freelance or contract worker.UVW-CWA currently has more than 500 members across the industry in North America and Canada. It works differently in that there isn't a contract between the union and specific companies. Instead, its power comes from the collective voice of members.The freelancing group under UVW-CWA is looking to create contract standards to help individual workers negotiate crediting terms into their contracts with companies. Webster said the union hasn't nailed down exact language just yet, but explained it could be useful, for instance, to ensure anybody who worked on a game for more than 30 days must be included in the credits."Game developers and publishers could work with unions in drafting a clause in the contract stating that all external collaborators are credited no matter how big or small that collaboration is," Morales added. Crucially, those clauses could be used to hold companies accountable if people are not properly credited. Morales said organizations like ATRAE are working to help people receive proper credits. That includes helping developers contact studios to make them aware of crediting issues in the hopes of delivering a fix.Studios don't always comply, but with contracts in hand—or a mass of worker support—that could change.