VR game developers say 2025 marks a shift away from new headset launches toward diversifying across Quest, PlayStation, and Steam to reach players, with cross‑platform releases proving beneficial but funding tightening. While some studios report solid holiday sales and ongoing content drops, others like Cloudhead Games have cut staff, and overall investment remains tight as Horizon OS is shelved and reliance on subscription revenue grows, prompting questions about sustainable indie VR growth in the near term.
The article promotes various subscription plans for the Financial Times, emphasizing the importance of digital access to quality financial journalism and analysis, with special offers for new subscribers.
FX Chairman John Landgraf predicts that a major merger between Paramount Skydance and Warner Bros. Discovery, or another large studio consolidation, is inevitable due to industry pressures to scale up and compete globally with streaming giants like Netflix and Apple, despite concerns about reduced creative diversity.
American Airlines reported record third-quarter revenue, but the increase was minimal and largely driven by non-passenger sources, while passenger revenue actually declined. The airline's efforts to revive business travel by increasing sales efforts and incentives have not resulted in significant growth, raising questions about the effectiveness of their strategy. The overall business travel market remains subdued, and American's focus on managed business travel may not deliver the expected benefits, prompting a reassessment of their approach.
The article discusses a more thoughtful and strategic approach to AI regulation, emphasizing the importance of balanced policies that foster innovation while ensuring safety and ethical standards. It highlights the need for collaboration between industry leaders and regulators to develop effective frameworks for AI governance.
Kraft Heinz is considering a potential breakup as part of its strategic review, aiming to explore options to enhance shareholder value and streamline operations.
Sony is heavily committed to expanding its live service game portfolio, but despite public confidence, many of its upcoming titles face significant challenges, with some projects showing signs of failure or uncertainty, indicating a potentially troubled future for its live service ambitions.
Despite the hype surrounding the release of Final Fantasy VII Rebirth, industry analysts suggest that the game is underperforming in terms of sales compared to its predecessor, Remake. With no official sales figures released by Square Enix, analysts estimate that Rebirth has sold around 2 million copies in over a month, significantly less than Remake's 3.5 million in three days. Factors such as platform release, pandemic influence, and budgetary differences may impact the game's success according to industry experts.
The Great Resignation may have subsided overall, but certain industries such as personal care services and trucking continue to experience high turnover as workers seek better-paying opportunities. This trend has led to wage increases in these sectors, posing a challenge for the Federal Reserve in managing inflation. Meanwhile, industries like retail and professional services have seen a decrease in quitting as wage hikes have moderated. The overall job market is cooling, and many workers have already found positions that match their skills and salary requirements during the Great Resignation.
Industry analyst Mat Piscatella suggests that the games industry is facing uncertainty and a lack of major releases in 2024, with overall spending expected to decline. He emphasizes the importance of upcoming game releases and highlights Grand Theft Auto 6 as a crucial and highly anticipated title that could significantly impact the industry, expressing optimism for its potential to generate renewed interest and drive sales.
Analyst Mat Piscatella predicts that Grand Theft Auto 6 will be a game-changer for the industry, suggesting it will be the most important release ever. With the gaming industry facing challenges, Piscatella anticipates a boost in development interest when GTA 6 launches in 2025. The game's predecessor, GTA 5, continues to dominate sales and viewership, setting high expectations for GTA 6 to surpass its success.
AMC Entertainment Holdings' low price-to-sales (P/S) ratio of 0.4x compared to the Entertainment industry suggests a potential buying opportunity, but further investigation is needed to determine if it's justified. The company has experienced strong revenue growth, but market sentiment indicates expectations of a decline. Analyst forecasts predict slower revenue growth for AMC compared to the industry, contributing to its low P/S ratio. Shareholders are accepting the low P/S as they anticipate weaker future revenue. A change in fortune will be necessary for the P/S to rise in the future.
