The Game Business
Games industry business news and analysis by Christopher Dring (ex-GamesIndustry.biz).
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We All Should Push Back Against the Political Manipulation of Video Games
The video game industry faces an urgent need to defend its content and creative autonomy against increasing political manipulation by global governments.
- A proposed settlement between Epic Games and Google would allow third-party app stores on Android devices globally and reduce Google Play service fees to a tiered structure of 9% or 20%, depending on the transaction.
- Journalist George Osborn warns that the game industry must actively defend its content against political co-option, citing the use of game iconography by governments to influence public discourse as a growing risk to the medium's integrity.
- Mobile developers are increasingly critical of the 30% commission fees charged by Apple and Google, arguing that the value provided by store placement and merchandising has diminished significantly.
Of Course, Working at Obsidian Is Like a Real-World RPG
Obsidian Entertainment’s operational philosophy centers on long-term stability and iterative development, aiming to sustain the studio for a century.
- Obsidian Entertainment has released six games since its 2018 acquisition by Microsoft, including three titles in 2025 alone: Avowed, Grounded 2 (Early Access), and The Outer Worlds 2.
- The studio prioritizes long-term staff retention by encouraging employees to 'multi-class' across different roles and projects, aiming to build a deep institutional knowledge of the studio's development ethos.
- Obsidian maintains a conservative, iterative development strategy that focuses on refining existing tech stacks rather than chasing industry-wide AAA trends or massive scale.
The Outer Worlds 2 developer Obsidian has turned its studio into a real world RPG
Obsidian Entertainment maintains a high-volume release schedule by utilizing a multi-team structure that prioritizes iterative development over the risks of massive, singular-project scaling.
- Obsidian Entertainment utilizes a multi-team structure and strategic co-development partnerships, such as with Eidos Montreal, to maintain a high-volume release schedule while avoiding the risks of singular-project scaling.
- The studio has implemented a unique internal tenure program that gamifies employee loyalty by mapping out a twenty-year career path to preserve institutional knowledge.
- Obsidian is shifting its strategic focus away from sequels for established intellectual properties to prioritize the cultivation of original franchises.
Battlefield 6 Reclaims No.1: EA Dominates the European Charts
Electronic Arts (EA) currently dominates the European video game market, with Battlefield 6 reclaiming the number one position in both unit sales and revenue for the week ending October 26, 2025.
- Electronic Arts dominates the European market for the week ending October 26, 2025, holding the top two spots in unit sales with Battlefield 6 and EA Sports FC 26.
- Battlefield 6 reclaimed the No. 1 position in European unit sales despite experiencing a 55% week-on-week decline in sales volume.
- Pokémon Legends: Z-A dropped to No. 3 in the charts following an 84% week-on-week decline in physical unit sales.
The Console War Is Irrelevant to Xbox
The traditional console war, defined by hardware sales and platform exclusivity, has become largely irrelevant to the strategic trajectory of Xbox.
- Microsoft has shifted its strategy away from traditional console hardware competition, focusing instead on a broader platform battle involving services, cloud technology, and multi-device game distribution.
- The 'console war' is no longer defined by hardware market share but by the ability to capture consumer time and spending across a diverse ecosystem that includes competitors like Roblox, Fortnite, Steam, Netflix, and Amazon.
- Xbox is prioritizing a platform-agnostic approach, exemplified by the 'This Is An Xbox' campaign, which aims to deliver the Xbox UI and services regardless of the underlying hardware manufacturer.
Arc Raiders: The Game That Dares to Go Up Against Battlefield and Call of Duty
Embark Studios, founded in 2018 by former EA executive Patrick Soderlund, is navigating the competitive landscape of the shooter genre with the upcoming release of its extraction shooter, Arc Raiders.
- Embark Studios is launching its extraction shooter Arc Raiders directly against major industry titles Battlefield 6 and Call of Duty: Black Ops 7, positioning it as the start of a long-term service journey.
- Arc Raiders underwent a significant pivot from its original 2021 concept as a co-operative AI-driven game to an extraction shooter after internal playtesting revealed the initial design was not fun to play.
- Following an initial surge of over 20 million downloads, Embark’s first title, The Finals, experienced a rapid decline in player retention in early 2024 due to issues with content depth, onboarding, and UI.
Interview with Embark CEO on how Arc Raiders is defying the industry odds
The gaming industry is currently navigating a period of significant contraction, characterized by a post-pandemic correction where studios that over-hired during the sector's boom now face the realities of diminished venture capital and intense market saturation.
- Embark Studios is targeting a 100x increase in content creation efficiency by utilizing proprietary tools, procedural generation, and AI to automate repetitive development tasks.
- The studio shifted the development of Arc Raiders from an AI-centric concept to an engagement-focused design after internal testing indicated the original model lacked core player enjoyment.
- Following the rapid player attrition seen after the launch of The Finals, Embark stabilized its user base and achieved profitability by prioritizing methodical data analysis and consistent content updates over aggressive growth.
Pokémon Legends: Z-A Europe Launch Analysis
The launch of Pokémon Legends: Z-A in Europe secured the number one position in unit sales for the week ending October 19, 2025.
- Pokémon Legends: Z-A debuted at No.1 in European physical sales for the week ending October 19, 2025, but recorded the lowest launch-week unit sales for a mainline Pokémon title since 2018.
- Launch sales for Pokémon Legends: Z-A were approximately 28% lower than its 2022 predecessor, Pokémon Legends: Arceus.
- The release of Pokémon Legends: Z-A in an official hardware bundle drove an increase in Nintendo Switch 2 console sales, which subsequently boosted weekly sales of Mario Kart World by 15%.
GDC warns companies not to skip 2026, and the US games market is up
The United States video game market is demonstrating unexpected resilience, marked by five consecutive months of growth and a 2% year-to-date increase in spending for 2025.
- The U.S. video game market has seen five consecutive months of growth and a 2% year-to-date increase in spending for 2025, driven by higher price points rather than increased unit sales.
- Market success is increasingly concentrated in established mega-franchises, with the console sector remaining heavily dependent on flagship series like Call of Duty to hit annual targets.
- The PlayStation 5 has surpassed the total U.S. installed base of the PlayStation 3, despite a broader trend of struggling hardware sales across the industry.
Skipping GDC Sends Message to Developers That You Don't Care, Organiser Warns
The Game Developers Conference (GDC) is undergoing a significant strategic pivot to address declining exhibitor participation and shifting industry dynamics.
- GDC is undergoing a major restructuring for its next event, including a shift to a 'festival' format, a 45% reduction in ticket prices, and the introduction of a safety hotline to address attendee concerns regarding San Francisco.
- GDC leadership warns that major companies skipping the conference, such as Unity and Epic, risk signaling to developers that they do not value the community, as the event serves as a critical 'front door' for meeting new talent.
- The US video game market saw 10% revenue growth in September 2025, driven by strong game releases like Borderlands 4, improved console sales, and increased subscription spending.
The PS5 Generation Has Brought Something Special, Insists Team Asobi
Team Asobi, a first-party PlayStation studio, asserts that the current console generation offers distinct technological advancements despite a market environment where incremental hardware improvements are often overshadowed by the continued relevance of older devices.
- Team Asobi studio director Nicolas Doucet identifies the PS5’s DualSense haptic feedback and SSD storage as the primary technical differentiators that define the current generation's value over previous hardware.
- Team Asobi functions as a key partner for PlayStation’s platform engineering team, frequently developing rapid prototypes over one-to-two-week periods to test new hardware features before they are finalized.
- The studio produced the award-winning title Astro Bot in three years with a core team of approximately 65 people by prioritizing small, iterative gameplay prototypes that allowed for efficient development without costly reworks.
"The PS5 has really brought something special"
The modern gaming landscape often prioritizes massive scale and extended playtimes, yet a more effective development philosophy centers on high-quality, focused content.
- Maintaining a lean development team of approximately 65 people and utilizing rapid prototyping helps studios avoid the high costs and bloat associated with modern AAA production.
- Assigning individual developers ownership over specific gameplay segments ensures consistent quality and prevents player fatigue throughout the title.
- Integrating PS5 hardware features like high-speed SSDs and DualSense haptic feedback as core gameplay elements, rather than superficial additions, is essential for deepening player immersion.