All articles tagged with #gaming industry
Microsoft appointed Asha Sharma as the new head of its gaming division after Phil Spencer's departure, with Sharma pledging a strict stance against 'bad AI' in game development and emphasizing that great stories are still crafted by humans, even as questions about her gaming experience persist amid ongoing AI debates in the industry.
A large new report by gaming-industry advisory firm Epyllion argues that mobile apps—ranging from social media and online betting to AI-based tools—are drawing users away from traditional video games, signaling a post-pandemic shift in how people spend their time and money and posing a challenge for game publishers as attention spans shrink and live-service models gain prominence.
Football commentator Guy Mowbray allowed EA to create an AI voice clone of himself to read the game’s more than 20,000 player names, part of EA’s broader use of AI in development. EA says it’s a collaborative tool with talent, not a replacement, as industry groups scrutinize AI in voice acting.
An Epyllion-commissioned report argues that major gaming markets post-pandemic show declining player bases and spend in PC/console and mobile, even as platforms like Roblox drive growth. Money and attention are shifting toward gambling, crypto, social video, AI-enabled adult content, prediction markets, and iGaming, with US and global losses in traditional gaming spend paired with rising bets and online betting. The takeaway: gaming’s post-pandemic problem isn’t just a TikTok preference, but a broader reallocation of time and dollars to alternative entertainment.
Global video game content sales rose 5.3% to $195.6B in 2025, even as private funding fell about 55% and layoffs persisted. Outsourcing climbed to 35.5% of content investment, with notable titles like Hollow Knight: Silksong and Palworld relying heavily on external work. Console spending grew modestly while platform services dominated growth; PC spending rose 30% since 2020, and China accounted for roughly 20% of global player spend. Roblox emerged as the key growth driver, and analysts foresee 2026 growth in non-core markets, advertising, direct-to-consumer and alternative payments, external development, and Roblox.
Google's Project Genie, an AI tool that generates 60-second virtual worlds, sparked a stock drop for major game companies (Take-Two, CD Projekt, Unity, Roblox) as investors fear AI could replace traditional game development—experts say the tech isn't there yet.
A reader argues that big-budget Western publishers are navigating a self-inflicted decline, pointing to Xbox sales slumps, Ubisoft struggles, EA’s debt, and GTA6 delays as signs of a deteriorating industry. The piece blames executives for apathy toward gaming and insufficient adaptation, predicting further decline unless changes occur, while finding guarded optimism in Japanese studios and Asian/indie developers reshaping the scene.
GDC's 2026 State of the Game Industry Report shows 33% of surveyed US game workers laid off in the past 24 months, with 48% still seeking work; globally 28% were laid off and 17% in the last year. Designers were hit hardest (about 20%), while business operations saw the lowest impact (8%). Main reasons cited include restructuring (43%), project cancellations (32%), and budget cuts/market conditions (38%), with many layoffs tied to acquisitions and industry consolidation—underscoring ongoing stress in the sector, echoed by Ubisoft’s recent organizational reset.
Google’s new AI model Project Genie can create interactive digital worlds from prompts in real time, a development that sent shares of videogame makers Take-Two, Roblox and Unity lower as investors weigh AI-driven shifts in game development, potential cost savings and shorter development cycles, along with concerns about job losses in a competitive industry.
A surge of online protest against AI-generated art, characters, and dialogue in video games has led studios to cancel, pause, or heavily revise titles, illustrating how consumer pressure can influence AI use in gaming and potentially steer broader industry adoption.
GOG says its 2020 decision to pull the Taiwanese horror game Devotion was driven by business constraints and geopolitical factors, a choice it now acknowledges damaged user trust; the company notes the situation differs from its handling of other titles like Horses and emphasizes ongoing navigation of legal, operational, and commercial realities for its storefront.
Ubisoft’s corporate restructuring led to cancelled projects and studio closures, signaling a shift toward open-world live-service games powered by generative AI; amid the upheaval, the Watch Dogs franchise’s future is uncertain, with a prominent leaker claiming the IP is dead, though some sources say only a fan-made project is not in active development.
Ubisoft is reportedly done with the Watch Dogs series, with insider Tom Henderson saying the IP is 'completely dead' after Legion's weak reception, as the publisher restructures amid IP fatigue and high overhead; Tencent's investment has aided a turnaround, but not all Ubisoft franchises are guaranteed to survive, though a Watch Dogs movie remains in development.
Ubisoft’s stock dropped about 33% after it announced a broad restructuring, closing studios and canceling six games, and warned of around €1 billion in operating losses for the year ending 2026 with a €650 million write-down. The plan includes €500 million in cost cuts, aiming for fixed costs of €1.25 billion by 2028, and net bookings of roughly €1.5 billion for 2026, with potential asset sales as part of the reset.
Hill Climb Racing has surpassed 2 billion downloads since its 2012 debut, marking a major milestone for Fingersoft’s free-to-play mobile hit; the digest also notes ESO’s Seasons pivot is not tied to Microsoft layoffs, along with other gaming-industry updates.