The Game Business
Games industry business news and analysis by Christopher Dring (ex-GamesIndustry.biz).
Documents
Amazon Luna: We’re Not Trying to Replace Consoles
Amazon is strategically positioning its Luna cloud gaming service as a complementary entertainment option rather than a direct competitor to traditional console hardware.
- Amazon Luna has been integrated into the Prime Video app, and Amazon Game Studios and Amazon Luna have merged, indicating a unified strategy for Amazon's gaming efforts.
- Amazon Luna is not directly competing with traditional consoles but aims to expand the gaming market by targeting a 'mid-core to casual' audience, particularly those deterred by expensive hardware (potentially $1000 machines) and game costs.
- Amazon's content strategy focuses on big, familiar IPs with relatively simple mechanics, such as Hogwarts Legacy, Indiana Jones, and the upcoming Tomb Raider, to appeal to this broader audience.
Amazon Luna: We’re not trying to replace PlayStation, Xbox and Nintendo (but maybe we could)
Amazon is strategically positioning its Luna cloud gaming service to capture the vast, underserved market of casual and lapsed players by integrating interactive gaming directly into the Prime Video ecosystem.
- Amazon is positioning Luna to capture casual and lapsed gamers by integrating cloud gaming directly into the Prime Video ecosystem, bypassing the need for dedicated console hardware.
- The U.S. gaming market experienced a 21% revenue decline as of June 2026, driven by a cooling in hardware sales following the launch of the Nintendo Switch 2.
- Retail models are shifting away from physical software, evidenced by GameStop’s pivot as software sales now account for less than 12% of its total business.
RuneScape CEO: We Want to Be Bigger than World of Warcraft
Jagex is undergoing a strategic transformation to establish the RuneScape franchise as the preeminent force in the massively multiplayer online gaming sector, with the explicit objective of surpassing World of Warcraft in global market share.
- Jagex has rebranded itself as "Jagex: The RuneScape Company," selling off its non-RuneScape game, Scum, and its developer, Gamepires, to focus exclusively on the RuneScape franchise.
- The company's strategy, RS25, has three main goals: stabilize the declining RuneScape MMO, heavily invest in the successful Old School RuneScape, and fully release the survival game RuneScape: Dragonwilds.
- Old School RuneScape has broken multiple records across major metrics in the last 12 months, experiencing an "unbelievable kind of heater."
RuneScape CEO: We want to be bigger than World of Warcraft
Jagex is undergoing a strategic transformation to solidify its position as a premier global gaming entity by centering all operations exclusively on the RuneScape franchise.
- Jagex has launched the 'RS25' strategy, a £200 million investment initiative aimed at modernizing the RuneScape franchise and establishing it as the world’s leading MMO brand within five years.
- The company is pivoting to a single-franchise focus by divesting non-core assets to prioritize the long-term health and growth of RuneScape.
- Jagex intends to leverage its historical player base of 300 million users to drive expansion into Asian markets and launch the new title 'Dragon Isles' on console platforms.
Dead Space Creator Glen Schofield Is Retiring
The retirement of industry veteran Glen Schofield marks a significant moment for the video game sector, highlighting the ongoing challenges creators face in securing funding for large-scale projects.
- Glen Schofield, known for his work on Dead Space and Call of Duty, is retiring from video game development.
- Schofield's retirement follows his struggle to secure funding for his desired AAA projects.
- The announcement was made by Schofield in a video posted on LinkedIn.
EA wants console game makers to consider in-game ads during development
Electronic Arts is actively pursuing the integration of in-game advertising within console and PC titles to establish a sustainable revenue stream capable of offsetting the escalating costs of modern game development.
- Electronic Arts is integrating in-game advertising into console and PC titles to offset the rising costs of modern game development.
- The company is deploying a proprietary ad platform directly into the Frostbite engine to enable dynamic, standardized, and targetable ad placements.
- EA aims to shift away from intrusive ads in favor of organic, design-led placements, such as stadium signage in sports games or branded cosmetic items.
Interview: Netflix Wants to Become the ‘Place to Play a Story’
Netflix is strategically positioning itself as a premier destination for narrative-driven gaming by leveraging its massive global audience of 700 million subscribers.
- Netflix aims to become a primary platform for interactive storytelling, specifically targeting its existing 700 million viewers who consume films and series, rather than traditional gamers.
- Netflix's new narrative game, "Unhinged," is a horror thriller starring Sadie Sink, Zoë Kravitz, and Troy Baker, designed to be an approachable, short experience (20-60 minutes) for a broad audience.
- The game utilizes the mobile phone as both a controller and an integral part of the narrative experience, evolving the 'found phone' genre previously explored in titles like the Mr. Robot game.
Is Netflix the future of video game story-telling?
Netflix is actively expanding its footprint in the video game industry by leveraging its massive subscriber base of approximately 700 million users.
- Netflix is leveraging its 700 million subscriber base to integrate interactive narrative experiences into its existing streaming ecosystem, targeting non-traditional gamers rather than competing with console manufacturers.
- The company categorizes its gaming strategy into four distinct verticals: kids, party and puzzle, mainstream, and narrative.
- Netflix’s internal Night School Studio launched 'Unhinged,' a 30-minute horror title that uses smartphones as controllers to test the viability of mobile-first, interactive storytelling.
Retail Trade Body Condemns PlayStation’s Plan to Kill the Disc
The Entertainment Retailers Association (ERA) has formally condemned PlayStation’s strategic decision to cease the manufacturing of physical game discs, a policy scheduled to take effect in January 2028.
- A retail trade body, the Entertainment Retailer’s Association (representing major UK retailers like Amazon, Game, Sainsbury’s, and HMV), has condemned PlayStation’s plan to stop manufacturing physical game discs starting January 2028.
- The report highlights a 'brutal' period for the video game industry, noting Xbox's recent cuts of 1,600 jobs.
- Other industry news includes strong sales for a new Assassin’s Creed remake, the discontinuation of Mario Kart Tour, and the popularity of Meccha Chameleon.
The State of Games: May 2026
The video game industry experienced a period of significant performance variance during May 2026, characterized by notable successes for specific franchises alongside broader challenges for major hardware manufacturers.
- The report, titled "The State of Games: May 2026," was published on July 10, 2026, by Christopher Dring.
- May 2026 was a strong month for game titles including Forza, Bond, Batman, and Subnautica.
- PlayStation experienced a challenging month in May 2026.
The Number of Video Game Journalists Has Fallen by Nearly 300 in 2026
The global video game industry is currently undergoing a period of profound structural instability, characterized by a sharp contraction in specialized media and significant corporate reorganization.
- The number of video game journalists has fallen by nearly 300 in 2026.
- Microsoft has laid off staff from Compulsion and Double Fine, with employees reportedly being told to update their CVs, despite receiving some runway cash.
- IO Interactive is closing its Istanbul studio and laying off staff after losing funding from Xbox for its James Bond game, shifting focus to internal core titles and its Hitman series.
Number of video game journalists plummets. Plus! More on Xbox and Atari launches IMDB rival
The global video game industry is currently navigating a period of profound structural instability, characterized by widespread workforce reductions, the contraction of traditional media, and a strategic pivot toward consolidation and niche sustainability.
- The global gaming media sector has faced a significant contraction, with over 280 journalists exiting the industry during the first half of 2026.
- Xbox is undergoing major internal restructuring and shifting its strategic focus toward massive, mainstream-oriented franchises like Call of Duty and Minecraft following ineffective post-acquisition integration.
- Atari is attempting to revitalize its operations by centralizing administrative functions and expanding its MobyGames platform into a professional networking tool for developers.