The Game Business
Games industry business news and analysis by Christopher Dring (ex-GamesIndustry.biz).
Documents
Jagex prepared to take financial hit to save RuneScape
Jagex is currently undergoing a strategic pivot to prioritize the long-term health and integrity of the RuneScape franchise over short-term revenue gains.
- Jagex is prioritizing the long-term sustainability of the RuneScape franchise over short-term revenue by re-evaluating and potentially reducing microtransactions in RuneScape 3.
- The company has abandoned third-party publishing and large-scale acquisitions to focus exclusively on its core MMO portfolio: RuneScape, Old School RuneScape, and RuneScape: Dragonwilds.
- Old School RuneScape maintains its market position through a democratic development model that requires a 70% player approval rating for all content updates.
Are video game consoles in trouble?
The video game industry is currently undergoing a structural transformation characterized by the erosion of the console’s status as the primary gateway for new players.
- The console is losing its status as the primary gateway for new players, leading to a decline in unit sales and a demographic shift toward an older, more affluent consumer base.
- Younger demographics are increasingly migrating toward accessible, casual platforms like Roblox, effectively pricing them out of the traditional console ecosystem.
- Major publishers are shifting toward multiplatform strategies that prioritize PC and mobile distribution to ensure long-term viability as the hardware-centric business model loses dominance.
Life after Sega: Can Relic and Amplitude rejuvenate strategy games
Relic Entertainment and Amplitude Studios are navigating a pivotal transition following their departure from Sega, marking a broader industry shift toward independent agility within the strategy game sector.
- Relic Entertainment and Amplitude Studios have transitioned to independent operations following their departure from Sega to prioritize operational autonomy and community-focused development.
- Relic Entertainment is implementing a tiered production system that separates flagship titles from smaller, experimental projects under the 'Relic Labs' initiative to reduce financial risk and overhead.
- Amplitude Studios is maintaining its focus on the 4X strategy genre with a dedicated team of approximately 170 professionals, prioritizing deep engagement with its existing player base over mass-market expansion.
Developers are holding back game features due to online safety laws
Global online safety legislation, including the UK’s Online Safety Act and the EU’s Digital Services Act, is fundamentally reshaping the video game industry by imposing rigorous compliance requirements on user-generated content, chat functionality, and monetization.
- New online safety regulations like the UK’s Online Safety Act and the EU’s Digital Services Act are forcing developers to omit or delay social and community features to avoid the high administrative burden of mandatory risk assessments.
- Console user growth has stagnated at approximately 2.5 percent, while revenue has increased by 5.5 percent, indicating that higher price points are driving short-term gains at the expense of long-term player acquisition.
- Private payment processors are increasingly acting as de facto regulators by enforcing their own content standards, adding a layer of complexity to official government compliance requirements.
Can Atari make its retro games strategy profitable?
Atari is currently navigating a strategic pivot toward becoming a leader in the retro gaming sector, focusing on high-quality remasters, remakes, and sequels to classic intellectual properties.
- Atari is executing a strategic pivot to focus on high-quality remasters and remakes of classic intellectual properties, supported by the acquisitions of specialized studios Digital Eclipse and Night Dive Studios.
- To compete with unauthorized emulation, Atari’s business model centers on providing a 'better than free' user experience that justifies premium pricing through technical excellence and authenticity.
- The company maintains a release cadence of approximately four titles per year, balancing high-profile commercial projects with niche, passion-driven releases to mitigate financial risk.
Over 50% of the job cuts in video games are in California
The video game industry is currently undergoing a period of significant structural contraction, characterized by an uneven labor market that disproportionately impacts North American hubs.
- California is the epicenter of the current industry contraction, accounting for more than 50% of global video game job cuts.
- While total industry employment remains higher than pre-pandemic levels, the current volume of open positions is insufficient to absorb the available talent pool.
- Companies are increasingly shifting hiring outside of North America to optimize costs and streamline operations in response to labor market volatility.
The Indiana Jones game developer has a fight club in its basement
MachineGames, the Swedish developer behind the Wolfenstein series and Indiana Jones and the Great Circle, operates with a distinct studio culture defined by a commitment to immersive, first-person storytelling and a collaborative, hobbyist-driven environment.
- MachineGames is developing 'Indiana Jones and the Great Circle' using a hybrid perspective model that blends first-person immersion with third-person transitions to maintain character visibility.
- The studio’s strategic development for the 'Indiana Jones' title is shaped by the Game Pass ecosystem, prioritizing strong onboarding and accessibility to serve a broad, diverse player base.
- MachineGames utilizes DLC as a core operational tool to manage production workflows, allowing teams to maintain momentum and refine mechanics after the primary project concludes.
LEGO Batman: Legacy of the Dark Knight was the biggest announcement of Gamescom 2025
Gamescom 2025 served as a critical barometer for the global gaming industry, reflecting a landscape defined by cautious optimism and a strategic pivot toward sustainable development.
- LEGO Batman: Legacy of the Dark Knight was the top commercial performer at Gamescom 2025, leading the event in new wishlists and media coverage.
- Hollow Knight: Silksong continues to exert significant market pressure, forcing smaller developers to reschedule releases to avoid direct competition with the title.
- Industry analysts are shifting focus from traditional metrics like wishlists toward deeper engagement indicators, such as community activity on platforms like Discord.
Cyberpunk 2077’s troubled launch taught CD Projekt the value of physical events (and other stories)
Modern game marketing demands a shift away from luck-based strategies toward data-informed, long-term engagement models.
- CD Projekt’s experience with the Cyberpunk 2077 launch highlights that failing to align promotional materials with the final product quality destroys community trust and long-term commercial viability.
- Marketing strategies must shift from high-risk, stealth-launch tactics to long-term engagement models that prioritize consistent, high-quality gameplay experiences over cinematic trailers.
- Physical industry events like Gamescom are essential for gathering direct, high-fidelity feedback and building community energy that digital channels cannot replicate.
Attracting new players with ROG Xbox Ally will be a ‘longer journey’
The gaming industry is currently navigating a significant transition as major platform holders, particularly Xbox, shift from traditional console-exclusive models toward a hybrid console-PC ecosystem.
- The European gaming market experienced a contraction in the first 20 weeks of the year, with unit sales declining by 6% and total revenue falling by 2%.
- Despite overall market contraction, consumer spending per game increased by €2 year-over-year, indicating a shift toward higher investment in indie and high-quality, shorter experiences.
- The Asus ROG Ally is currently positioned as a niche 'frontier product' for enthusiasts rather than a mass-market device, primarily because its Windows-based software lacks the plug-and-play accessibility of native console operating systems.
Why is NCSoft entering the hyper competitive live service shooter market?
NCSoft is undergoing a fundamental strategic pivot, transitioning from its three-decade legacy as a dedicated massively multiplayer online game developer toward the hyper-competitive global shooter market.
- NCSoft is executing a strategic pivot away from its 30-year focus on MMOs to enter the global live service shooter market with titles such as Cinder City and Time Takers.
- The company is diversifying its portfolio through seven new projects, utilizing a mix of internal development and external studio partnerships to mitigate risk.
- NCSoft aims to differentiate its shooters by combining its expertise in open-world architecture and server infrastructure with distinct Korean aesthetics and narrative-driven gameplay.
Call of Duty and Dead Space Creator Glen Schofield: "AAA Is Not Dead Because Some Exec Says So"
Glen Schofield, the creator of Dead Space and various Call of Duty titles, challenges the prevailing industry narrative that the AAA game development model is obsolete.
- Glen Schofield rejects the narrative that AAA gaming is dead, arguing that the sector has historically driven technological innovation and established standards for the entire industry.
- The Callisto Protocol, developed by Striking Distance Studios, cost $160 million to produce, leading to two separate financial audits by publisher Krafton.
- Schofield regrets the decision to ship The Callisto Protocol in December 2022, citing pressure from Krafton to meet Korean stock market deadlines as the primary cause for the game's poor technical launch state on PC.