The Game Business
Games industry business news and analysis by Christopher Dring (ex-GamesIndustry.biz).
Documents
Epic Offers ‘Peace Proposal’ After US Court Ends Apple’s Control Over the App Store
A recent United States court ruling has significantly curtailed Apple’s control over the iOS App Store, finding the company in violation of a 2021 anti-steering injunction.
- A US court ruled that Apple violated a 2021 anti-steering injunction, prohibiting the company from blocking developers from promoting alternative payment methods or charging fees on purchases made outside the App Store.
- Apple is now barred from controlling link placement or the language developers use to inform customers about external purchasing options and must replace 'scare screens' with neutral language.
- Epic Games has offered to drop all litigation against Apple and return Fortnite to the iOS App Store globally if Apple applies these US-court-mandated rules to its platform worldwide.
Sam Lake: "I had to take six months off after Alan Wake 2"
The development of Alan Wake 2 represents a pinnacle of interactive storytelling, characterized by the complex integration of live-action sequences, musical elements, and narrative-driven mechanics.
- The intense development of Alan Wake 2 required Sam Lake to take a six-month sabbatical to recover from the project's unsustainable production demands.
- Remedy Entertainment has transitioned to a co-creative director model to support the studio's growth and the management of multiple concurrent projects.
- The studio is scaling its intellectual properties through strategic partnerships, including a collaboration with Annapurna Pictures to develop film and television adaptations.
The number of video game articles dropped by over 100,000 in Q1
The video game media landscape is undergoing a profound contraction, characterized by a 13% decline in output that saw 100,000 fewer articles published in the first quarter compared to the previous year.
- The video game media landscape experienced a 13% decline in output during Q1, resulting in 100,000 fewer published articles compared to the previous year.
- Editorial capacity has significantly diminished, with the industry losing nearly 3,000 press contacts over the past two years.
- Major media outlets are narrowing their editorial focus to high-traffic coverage of major titles, while smaller publications are shifting toward subscription models and B2B services to combat volatile ad revenue.
Kingdom Come: Deliverance 2 director hopes “AI revolution” will allow him to make games faster
The creative director and co-founder of Warhorse Studios, Daniel Vávra, discusses the successful launch of Kingdom Come: Deliverance 2, which achieved 2 million units sold within its first two weeks.
- Kingdom Come: Deliverance 2 sold 2 million units within its first two weeks, meeting internal projections based on pre-order data.
- Warhorse Studios scaled its team to 250 employees over a six-year development cycle that included navigating the COVID-19 pandemic.
- The studio attributes its commercial success to maintaining creative autonomy under Embracer Group, avoiding the trend-focused 'corporate product' model common in modern AAA development.
The video game industry is not ready to lose boxed games
The video game industry is currently navigating a precarious transition as the physical retail market experiences a sharp contraction.
- The UK physical game market experienced a significant contraction in 2024, with sales volume dropping by 26% and revenue falling by 34.5%.
- The decline of physical retail is being accelerated by a weaker release schedule for the Nintendo Switch, which has historically functioned as the primary anchor for the boxed game market.
- The industry faces mounting economic instability, including rising hardware production costs, volatile tax credit policies in development hubs like Quebec, and the threat of international trade tariffs.
What Do the US Tariffs Mean for Video Games?
The imposition of new United States tariffs in 2025 has created significant volatility for the global video game industry, primarily affecting hardware manufacturing and consumer pricing.
- As of April 2025, the US has implemented a 10% tariff on all imported goods, while Chinese imports face a significantly higher 145% total levy (comprised of a 125% tariff plus an earlier 20% duty).
- A 90-day pause on proposed tariffs for non-Chinese countries, announced April 9, allows for negotiations, though the administration has signaled that current exemptions for PCs, smartphones, and monitors are temporary.
- Video game consoles and accessories remain subject to tariffs and are not currently exempt, with previous proposals threatening rates as high as 46% for Vietnam-made consoles and 24% for Japanese-manufactured games.
“We’ve never had a better moment to adapt your game to film or TV”
The current landscape for adapting video games into film and television is experiencing a period of unprecedented opportunity, driven by a shift toward respecting the source material and its community.
- Successful game adaptations now rely on deep involvement from developers and publishers throughout the creative process to ensure the intellectual property's essence is preserved.
- Developers must prioritize securing specialized legal representation to navigate complex negotiations and prevent the loss of control over their intellectual property.
- To mitigate the risk of 'smash and grab' tactics by Hollywood, studios should seek long-term partners who view the game developer as a core collaborator rather than a mere licensor.
What does the Minecraft movie and Last of Us TV show do to game sales?
Adaptations of video game intellectual property into film and television have become a primary driver for sustained player engagement and commercial growth.
- Film and television adaptations of gaming IP, such as The Last of Us, Fallout, and the Minecraft movie, are driving double-digit growth in daily active player counts.
- Studios are successfully converting theatrical interest into tangible commercial growth by treating gaming franchises with cross-media strategies similar to those used for comic books.
- Media adaptations generate sustained momentum rather than fleeting interest when they maintain creator involvement and capture the core culture of the source material.
My Chat with Matthew Ball: What Might Turn the Video Game Industry Around
This analysis explores the current stagnation of the video game industry, identifying key growth drivers and strategic opportunities for recovery.
- Roblox is a primary industry growth engine, boasting over 425 million monthly active users and engagement hours that exceed the combined totals of Steam, PlayStation, Xbox, and Switch.
- The video game industry's recent stagnation is not solely due to post-pandemic corrections, as the sector had maintained a consistent 10% annual growth rate for the decade prior to 2020.
- Handheld devices like the Steam Deck and PlayStation Portal, despite low unit sales, represent a significant opportunity because they skew toward the most avid, high-spending gamers with the largest social graphs.
Matthew Ball and the future of video games
The global video game industry is currently navigating a period of significant stagnation, characterized by participation rates that have dipped below pre-pandemic levels and a plateau in console install bases.
- The global video game industry is experiencing stagnation, with participation rates falling below pre-pandemic levels and console install bases plateauing.
- Consumer behavior has shifted away from high-budget releases toward entrenched, free-to-play titles, rendering incremental graphical upgrades less effective for driving hardware sales.
- User-Generated Content platforms like Roblox are now primary competitors to major gaming ecosystems, capturing significant total engagement as traditional growth models falter.
Is Nintendo Switch 2 a legitimate rival to Xbox and PlayStation this time? | Here’s The Dring
The Nintendo Switch 2 represents a significant shift in Nintendo’s market positioning, moving from a peripheral, family-focused console toward a more direct competitor with the PlayStation and Xbox ecosystems.
- The Nintendo Switch 2 is shifting strategy to compete directly with Xbox and PlayStation by supporting high-fidelity third-party titles like Call of Duty, Madden, and Elden Ring.
- Nintendo is targeting the 'time-poor' adult demographic, aiming to establish the Switch 2 as an essential secondary console for core gamers who prioritize portability and flexibility.
- Nintendo has successfully evolved its core franchises—including Mario, Zelda, and Animal Crossing—into diversified entertainment pillars that span movies, merchandise, and theme parks.
Trump’s Tariffs: Video Games Braced for Job Losses, Higher Prices and Falling Investment
The video game industry faces significant economic instability following the announcement of new United States trade tariffs on hardware manufactured in countries including Vietnam, China, and Japan.
- New US tariffs have imposed a 46% levy on goods from Vietnam, where the Nintendo Switch 2 is manufactured, and a 24% tariff on Japanese-made goods, including game cartridges.
- Nintendo has delayed pre-orders for the Switch 2 to assess the financial impact of these tariffs, though the company maintains its scheduled June 5, 2025, launch date.
- The Entertainment Software Association (ESA) warns that because video game consoles operate on razor-thin margins, the tariffs will likely force price increases for consumers and reduce industry investment in R&D and innovation.