Update Patch | May 2024
May 2024 is a month with notable anniversaries, notable games and notable stories in the games industry. On the first front, it marks five years since Theresa May announced her resignation as Prime Minister with tears galore. In the U.S., it marks 25 years since Brendan Fraser and Rachel Weisz starred in The Mummy and George Lucas ruined our hopes and dreams with Star Wars Episode I: The Phantom Menace.
Meanwhile, plenty of hallmark titles released just before the summer showcases. Ubisoft released XDefiant, Nintendo remastered Paper Mario: The Thousand-Year Door, and Microsoft had a big exclusive for once with Senua’s Saga: Hellblade II. However, that wasn’t the biggest saga for the company this month.
1. THAT Xbox News
Of course, the biggest news was the shock closure of Tango Gameworks (Hi-Fi Rush, The Evil Within), Arkane Austin (Redfall, Prey), Alpha Dog Games and Roundhouse Games by Microsoft. Some employees at Arkane Austin will be redistributed across Bethesda Studios whilst Roundhouse Games will merge with ZeniMax Online Studios to work on The Elder Scrolls Online.
The news was broken to staff in an email sent by Xbox Game Studios Head Matt Booty. As detailed by IGN, Booty says “These changes are grounded in prioritising high-impact titles and further investing in Bethesda’s portfolio of blockbuster games and beloved worlds which you have nurtured over many decades […] We are making these tough decisions to create capacity to increase investment in other parts of our portfolio and focus on our priority games.”
The news was met with disappointment from many in the industry and bafflement in the following days after some confusing statements. Most notable was the reaction of current Arkane Lyon boss Dinga Bakaba posting a strong statement on Twitter, saying to executives in the industry: “[a] friendly reminder that video games are an entertainment/cultural industry, and your business as a corporation is to take care of your artists/entertainers and help them create value for you.”
In the following days, further reports indicated the studios were closed through no fault of their own. In a town hall held by Booty and ZeniMax Studios Head Jill Braff, both Bloomberg and The Verge detailed some remarks made. Bloomberg reported Booty saying the studios across ZeniMax were “spread too thin” and Braff suggested that requests for additional staff by the studios were a factor. Those requests may have come with reported pitches being made by the studios for a sequel to smash hit Hi-Fi Rush, and a new Dishonored entry. Meanwhile, The Verge reported that Booty suggested that Microsoft’s strategy included needing “smaller games that [give] us prestige and awards”. If only Tango Gameworks had put out a BAFTA-winning small game for Microsoft.
2. Acquisitions Here, Get Your Mergers & Acquisitions Here!
As is the case everywhere, the industry continues to have acquisitions and the month saw a set of unique mergers.
Nintendo made a rare acquisition, with the announcement that it will acquire Shiver Entertainment from the Embracer Group. The company is best known for its ports to the Switch of Hogwarts Legacy and Mortal Kombat 1. As detailed by GamesIndustry.biz, the move is part of a wider strategy for the company to build its resources, with Nintendo President Shuntaro Furukawa saying the focus is more on “work within the company”, “the recruitment of recent graduates and mid-career hires”, and to “strengthen [its] ties” with third-party partners.
Meanwhile, a big acquisition took place in the games journalism space as IGN Entertainment acquired the Gamer Network outlets for an undisclosed amount. The Gamer Network websites consist of European sites Eurogamer, GamesIndustry.biz, VG247, Rock Paper Shotgun, Dicebreaker and shares in other brands such as Hookshot Media, Digital Foundry and Outside Xbox. The merger has resulted in a number of layoffs at the publications.
Finally, the oldest console war in history has concluded with Atari acquiring Intellivision. The merger sees the Intellivision brand and “certain games” from the company now come under Atari control. Atari is looking to “expand digital and physical distribution of legacy Intellivision games, potentially create new games, and explore brand and licensing opportunities”. The acquisition includes “more than 200” games from Intellivision’s catalogue. The two companies were in competition through the late ‘70s and ‘80s with the Atari 2600 and Intellivision consoles.
3. More Layoffs (I know, shocking)
Layoffs continue in the industry, and not just the ones mentioned above as a result of Microsoft’s closures.
As reported by VGC, an internal meeting at Square Enix saw confirmation from president Takashi Kiryu that both European and American studios would see layoffs. The number was not confirmed but would affect the publishing, IT and indie division departments. This followed on from news reported in Bloomberg that the company’s flagship games, including Foamstars, Final Fantasy XVI and Final Fantasy VII Rebirth, had not hit their targets for the financial year. The company has launched a new three-year strategy titled “Square Enix Reboots and Awakens” to turn around these issues which will see the company “aggressively pursue a multiplatform strategy” and potentially ditch its Sony exclusivity for some franchises going forward.
This has also seen the industry hit a new high, or low in this case, as the Games Industry Layoff Archive estimates that 10,000 people have been laid off or made redundant in the games industry in 2024 already, with the same archive estimating 10,500 employees laid off across the whole of 2023.
4. New Leaders At The Helm For Sony
Sony confirmed the new heads of Sony Interactive Entertainment following the departure and retirement of CEO Jim Ryan. The decision has been made for two-joint CEOs to succeed Ryan, with PlayStation Studios head Hermen Hulst and senior VP of Platform Experience Hideaki Nishino being elevated to the co-positions.
The changes see the business structure changing as well. As detailed in a press release, Hulst will lead SIE’s Studio Business Group and will be responsible for “development, publishing, and business operations of SIE’s first-party content.” This will include adaptation of gaming IP to other media through PlayStation Productions, as seen with recent successful adaptations such as The Last of Us on HBO, and also Uncharted in cinemas.
Nishino will lead the Platform Business Group. It will be behind technology, products, services and platform experience, as well as overseeing third-party publishing and developing commitments. This includes all upcoming hardware for the company and services for the PS5 which, as detailed by VG247, sold 20.8 million units over the company’s fiscal year ending in March. Both will report to current Sony President and SIE Chairman Hiroki Totoki.
5. EA Tests The Water For In-Game Ads, AI and Live Services
Another earnings call, this time by Electronic Arts, and one which saw CEO Andrew Wilson commenting on plenty of future plans for the company.
In a transcript of the Q4 and fiscal year earnings call, Wilson had plenty to say. When it comes to the use of AI, Wilson said the company “believes it will supercharge [the] differentiators” that give EA an “incredible competitive advantage”. The strengths include the “excellence of our creative talent”, the “production strength” and a “broad portfolio of incredible IP”.
Secondly, Wilson was keen to tout the company’s current and future live-service games. In the call, Wilson praised the “breadth of our live services”, stated that The Sims had “double-digit growth in the community” and that the latest iteration of the Madden franchise had “reached record levels of revenue”. Wilson also indicated the next Battlefield game will go on a similar route, describing it as a “tremendous live service”.
More concerningly, Wilson discussed the possibility of in-game advertising. Wilson said the company had “looked over the course of our history to be very thoughtful” with the use of advertising, but did say “our expectation is that advertising has an opportunity to be a meaningful driver of growth for us.”
6. Ubisoft’s Financial Report Indicates Future Plans
Ubisoft released its report for the end of the financial year FY24. The document indicates its successes and plans moving forward.
The company was keen to highlight a strong Q4 with 138 million unique active users and strong growth in the Rainbow Six and Assassin’s Creed franchises. In this, the company praised the “excellent results in terms of acquisition, activity, viewership and monetization” for Rainbow Six Siege. For Assassin’s Creed, it “continued to outperform in Q4” with the company citing the launch of Mirage and the inclusion of Valhalla in Xbox Game Pass. Similarly, Ubisoft noted releases such as The Crew: Motorfest and Prince of Persia: The Lost Crown as “designed to be long-term sellers”.
Going forward, the company will look to double down on familiar Ubisoft game formats, stating “We have made the choice to play to our strengths and are sharpening
our strategic focus on two verticals, Open World Adventures and [Games as a service]-native experiences.” In this, the company cites the Assassin’s Creed, Far Cry, Star Wars, The Division and Ghost Recon franchises as well as titles like The Division Resurgence, XDefiant and Rainbow Six Mobile.
Patch Notes:
Devolver Digital announced a summer showcase on 7th June at 17:00 PT.
Ubisoft announced its next Assassin’s Creed game will be set in Japan, titled Assassin’s Creed Shadows.
Nintendo went one further and announced an announcement, with company president Shuntaro Furukawa confirming that the “successor to Nintendo Switch” would be announced within the fiscal year.
Meanwhile, the Kingdom Hearts series has been confirmed to be appearing on Steam in June following an exclusivity period with the Epic Games Store.
However, Steam is facing problems as it has been banned in Vietnam after developers in the country complained about the company not needing permission from the government to release games, unlike the country’s own devs, according to Game Developer.
Take-Two revealed in an earnings call that Grand Theft Auto V has sold over 200 million copies.
Larian Studios of Baldur’s Gate 3 fame have opened a seventh studio in Warsaw, Poland.
As one studio opens, another closes as Sony’s PlayStation London Studio shuts down after 20+ years in operation.
Microsoft has started showcasing how AI could be used in gaming, with Copilot being used as a tutorial tool in Minecraft and assisting human moderators in community safety.
Remedy has announced the cancellation of the internally named multiplayer game Project Kestrel to focus on its current franchises.
Writer’s Note:
For the longest time, the games industry has dreamed of being as respected as the film industry. To be seen with the same prestige and cultural cache was a great desire. Well, the industry has done it, it's just that it's reflecting the worst parts of the film industry.
Hi-Fi Rush is the best original game for Microsoft this generation. It’s bursting with fun, has excellently crafted level-design, combat and boss fights. It was the critical darling, a BAFTA winner. Yet that wasn’t enough. The company and AAA industry has embraced mundanity and with every live-service game that uses the same template with a colour swap, the endless acquisitions and the big studios taking less risks in the name of profits, it reflects the big studios of the film industry sitting with the same dull cinematic universes, endless embrace of three-act structures and Disney’s endless acquisitions of film studios.
Why bother then? Well, because in both industries, hope remains in the smaller and independent players who craft sometimes flawed but bold works of art. Whether that be Luna Carmoon’s fabulous drama Hoard, Sunset Visitor’s alluring sci-fi story 1000xResist, Rose Glass’ uneven but vibrant sophomore feature Love Lies Bleeding, and Simogo’s well-received bizarre puzzler Lorelei and the Laser Eyes, the month had plenty to remind me that the risk-takers are still out there.
For all the negatives the month has brought from Microsoft and others, it hasn’t completely removed my faith in these industries. In the words sung by Emma Stone’s Mia Dolan in La La Land, “here’s to the fools who dream.”
