The Game Business
Games industry business news and analysis by Christopher Dring (ex-GamesIndustry.biz).
Documents
What an Open-Platform Xbox Could Mean for the Console Business
The evolving strategy at Xbox centers on a pivot toward an open-platform model, prioritizing Windows-based hardware that functions similarly to gaming PCs.
- Xbox is shifting its core strategy toward an open-platform model powered by Windows and AMD technology, aiming to support multiple storefronts like Steam, GOG, and Battle.net on its hardware.
- This pivot risks cannibalizing Xbox's own store revenue, which typically relies on a 30% commission from third-party game sales, a trade-off Microsoft is better positioned to absorb than competitors like Sony due to its smaller install base and Game Pass popularity.
- The new vision emphasizes a multi-platform approach where users can access games across PC, console, cloud, and mobile devices without additional costs, mirroring the cross-screen accessibility models found in the TV industry.
What hope does Twitch have in a TikTok world?
Twitch CEO Dan Clancy outlines the platform’s strategic evolution, emphasizing a shift toward community-centric live streaming as a counterpoint to the passive, short-form consumption models popularized by platforms like TikTok.
- Twitch is pivoting from restrictive exclusivity contracts to a multi-streaming model, forcing the platform to compete based on creator tools and community engagement rather than artificial barriers.
- Twitch serves as a major driver for game discovery and retention, evidenced by Grand Theft Auto V generating 1.4 billion hours of watch time annually on the platform.
- The platform is shifting its monetization strategy toward sustainable creator compensation through the Plus program, ad revenue sharing, and mobile-focused micro-transactions like 'combos'.
Most Diablo Immortal players are new to Diablo and Blizzard
Diablo Immortal has achieved significant global success three years post-launch, effectively serving as an entry point for a new demographic of players.
- Over 50% of Diablo Immortal’s user base consists of players who had no prior experience with the Diablo franchise or Blizzard’s ecosystem.
- The game maintains a consistent live-service cadence featuring major content updates every quarter and smaller releases every two weeks.
- Diablo Immortal has achieved global success three years post-launch by successfully bridging the gap between traditional PC-based Diablo fans and mobile-first players.
Will AI Transform Movie and TV Tie-ins?
Artificial intelligence is poised to fundamentally transform movie and television tie-in games by enabling emergent, personalized gameplay experiences.
- AI is expected to transform game tie-ins by enabling emergent gameplay, where non-player characters (NPCs) adapt their behavior and dialogue based on individual player interactions.
- Industry leaders from Wizards of the Coast, Netflix, and AGBO emphasize that IP holders must be less precious about their characters to allow for the dynamic, unpredictable experiences that younger generations expect.
- The adoption of Unreal Engine across film, TV, and gaming has significantly streamlined cross-media production by allowing studios to share pre-visualization assets directly between mediums.
Is AI about to transform video game tie-ins with movies and TV shows?
The modern entertainment landscape is undergoing a fundamental shift as intellectual property holders move away from treating video games as mere marketing appendages for film and television.
- Entertainment IP holders are shifting from using video games as marketing appendages to prioritizing high-quality, authentic gameplay that functions as a cohesive extension of a broader narrative universe.
- Studios are increasingly developing games and screen projects simultaneously by using shared creative teams and unified technological pipelines to ensure narrative consistency.
- The use of tools like Unreal Engine for both pre-visualization and final production is becoming the industry standard for maintaining emotional resonance across film, television, and gaming mediums.
How a Nearly Six-Hour Phone Call with the Russo Brothers Changed Fortnite
The Game Business Live event provided a comprehensive overview of current trends and strategic shifts within the global video game industry.
- Circana forecasts US video game spending will reach $56.5 billion in 2025, representing a 4.7% decline from 2024 due to mobile market struggles and consumer caution.
- Twitch CEO Dan Clancy reports that GTA 5 is the platform's most-watched game with 1.4 billion hours viewed in 2024, driven primarily by improvisational role-play content rather than traditional gameplay.
- A five-and-a-half-hour phone call between the Russo brothers and former Epic CCO Donald Mustard was the catalyst for integrating external film characters, such as Thanos, into Fortnite.
Switch 2: UK Console Market Launch Analysis
The Nintendo Switch 2 has achieved the strongest launch performance for a Nintendo machine in United Kingdom history, according to data from NielsenIQ.
- The Nintendo Switch 2 is the fastest-selling Nintendo console in UK history, outselling the original Switch launch by more than two to one.
- Despite its record-breaking performance for Nintendo, the Switch 2 ranks as the fourth best-selling console in the UK by units, trailing the PlayStation 5, PlayStation 4, and Xbox Series.
- In terms of launch revenue, the Switch 2 is the third best-selling console in the UK, behind the PlayStation 5 and Xbox Series.
The Xbox handheld is unlikely to do big numbers, but that's not the point
The ROG Xbox Ally X represents a strategic shift for Microsoft, positioning a high-end, Windows-based PC handheld as a specialized tool for the most dedicated and lucrative segment of the Xbox ecosystem.
- The PC handheld market is projected to grow from an estimated 4.1 million units in late 2024 to nearly 13 million units by 2028.
- Microsoft is positioning high-end Windows-based handhelds as specialized tools for high-spending core users rather than mass-market competitors to the Nintendo Switch.
- Nintendo expects the Switch 2 to reach 30 million units sold by the end of its launch year, though concerns persist regarding the lack of a flagship 'system-seller' title at launch.
Epic's Tim Sweeney: "We can build an economy that's bigger and better than the one in Roblox"
Epic Games is strategically positioning its ecosystem—centered on Fortnite and Unreal Engine—to lead the transition toward an interconnected, metaverse-style economy.
- Epic Games has paid out $722 million to third-party creators within Fortnite and $2.1 billion to partners through the Epic Games Store, underscoring its commitment to a creator-led economy.
- Epic is positioning its ecosystem to compete with Roblox by utilizing Unreal Engine 5 and the Unreal Editor for Fortnite (UEFN) to prioritize high-fidelity, interoperable social experiences over predatory monetization like loot boxes.
- The company is lowering production barriers for small teams by integrating AI-powered NPCs, developer assistants, and Metahuman tools to facilitate the creation of AAA-quality content.
Unity is making a video game, and it’s out this week on Switch 2
Unity has entered the game development space by partnering with Konami to produce a new title in the Survival Kids franchise, which serves as a launch exclusive for the Nintendo Switch 2.
- Unity has developed a new Survival Kids title in partnership with Konami, marking the company's first full-scale commercial game production.
- The title will serve as a launch exclusive for the upcoming Nintendo Switch 2 console.
- Unity initiated this project to stress-test its engine in a real-world production environment, specifically focusing on multiplayer capabilities and platform-specific features.
Is Mario Kart a good game to launch a console?
The primary objective is to evaluate whether the Mario Kart franchise possesses the necessary market influence to serve as a successful launch title for the Nintendo Switch 2.
- Mario Kart functions as a long-tail sales driver rather than a primary system seller, as historical data shows it typically performs better in years following a console launch.
- While Mario Kart titles achieve high attach rates ranging from 17% to 72%, hardware sales spikes are more consistently driven by price reductions and promotional bundles than by the release of the franchise itself.
- The Nintendo Switch 2 launch faces a perceived lack of momentum due to the absence of a high-urgency flagship title comparable to The Legend of Zelda, despite the expected quality of the upcoming Mario Kart World.
Ubisoft's Lisa Opie: Shorter, story games can grow the games industry
The global games industry is currently navigating a period of necessary maturation and market adjustment, characterized by intense competition for player time and evolving consumer habits.
- The games industry must prioritize shorter, narrative-driven titles to capture audiences with limited time and diversify content offerings.
- Addressing the industry's skills gap requires stronger collaboration between educational institutions and private studios to better align curricula with professional requirements.
- Future growth depends on the convergence of gaming with film and television, leveraging high-quality storytelling to facilitate cross-media engagement.