Ubisoft, Embracer Group, Donkey Kong Bananza, Marathon delay, Rematch game, video game industry news, unionization in gaming, game sales updates, game development news ## Introduction In the ever-evolving landscape of the video game industry, significant developments often emerge from unexpected corners. Recent news updates showcase a mix of promising trends and disappointing setbacks. From...

'This new phase allows me to focus on strategic initiatives, M&A, and capital allocation.'

We did it gang. We completed another week in the impossible survival sim that is real life. Give yourself a appreciative pat on the back and gaze wistfully towards whatever adventures or blissful respite the weekend might bring.This week I've mostly been recovering from my birthday celebrations, which entailed a bountiful Korean Barbecue that left me with a rampant case of the meat sweats and a pub crawl around one of Manchester's finest suburbs. There was no time for video games, but that's not always a bad thing. Distance makes the heart grow fonder, after all.I was welcomed back to the imaginary office with a news bludgeon to the face. The headlines this week have come thick and fast, bringing hardware announcements, more layoffs, and some notable sales milestones. As always, there's a lot to digest, so let's venture once more into the fray. The first Xbox handhelds have finally arrivedvia Game Developer // Microsoft finally stopped flirting with the idea of launching a handheld this week and unveiled not one, but two devices called the ROG Xbox Ally and ROG Xbox Ally X. The former is pitched towards casual players, while the latter aims to entice hardcore video game aficionados. Both devices were designed in collaboration with Asus and will presumably retail at price points that reflect their respective innards. We don't actually know yet, mind, because Microsoft didn't actually state how much they'll cost. You have the feel that's where the company really needs to stick the landing here.Related:Switch 2 tops 3.5 million sales to deliver Nintendo's biggest console launchvia Game Developer // Four days. That's all it took for the Switch 2 to shift over 3.5 million units worldwide to deliver Nintendo's biggest console launch ever. The original Switch needed a month to reach 2.74 million sales by contrast, while the PS5 needed two months to sell 4.5 million units worldwide. Xbox sales remain a mystery because Microsoft just doesn't talk about that sort of thing anymore, which is decidedly frustrating for those oddballs (read: this writer) who actually enjoy sifting through financial documents in search of those juicy juicy numbers.Inside the ‘Dragon Age’ Debacle That Gutted EA’s BioWare Studiovia Bloomberg (paywalled) // How do you kill a franchise like Dragon Age and leave a studio with the pedigree of BioWare in turmoil? According to a new report from Bloomberg, the answer will likely resonate with developers across the industry: corporate meddling. Sources speaking to the publication explained how Dragon Age: The Veilguard, which failed to meet the expectations of parent company EA, was in constant disarray because the American publisher couldn't decide whether it should be a live-service or single player title. Indecision from leadership within EA and an eventual pivot away from the live-service model only caused more confusion, with BioWare being told to implement foundational changes within impossible timelines. It's a story that's all the more alarming because of how familiar it feels.Related:Sony is making layoffs at Days Gone developer Bend Studiovia Game Developer // Sony has continued its Tony Award-winning tun as the Grim Reaper by cutting even more jobs within PlayStation Studios. Days Gone developer Bend Studio was the latest casualty, with the first-party developer confirming a number of employees were laid off just months after the cancellation of a live-service project. Sony didn't confirm how many people lost their jobs, but Bloomberg reporter Jason Schreier heard that around 40 people (roughly 30 percent of the studio's headcount) were let go. Embracer CEO Lars Wingefors to become executive chair and focus on M&Avia Game Developer // Somewhere, in a deep dark corner of the world, the monkey's paw has curled. Embracer CEO Lars Wingefors, who demonstrated his leadership nous by spending years embarking on a colossal merger and acquisition spree only to immediately start downsizing, has announced he'll be stepping down as CEO. The catch? Wingefors is currently proposed to be appointed executive chair of the board of Embracer. In his new role, he'll apparently focus on strategic initiatives, capital allocation, and mergers and acquisitions. And people wonder why satire is dead. Related:Hong Kong Outlaws a Video Game, Saying It Promotes 'Armed Revolution'via The New York Times (paywalled) // National security police in Hong Kong have banned a Taiwanese video game called Reversed Front: Bonfire for supposedly "advocating armed revolution." Authorities in the region warned that anybody who downloads or recommends the online strategy title will face serious legal charges. The game has been pulled from Apple's marketplace in Hong Kong but is still available for download elsewhere. It was never available in mainland China. Developer ESC Taiwan, part of an group of volunteers who are vocal detractors of China's Communist Party, thanked Hong Kong authorities for the free publicity in a social media post and said the ban shows how political censorship remains prominent in the territory. RuneScape developer accused of ‘catering to American conservatism’ by rolling back Pride Month eventsvia PinkNews // Runescape developers inside Jagex have reportedly been left reeling after the studio decided to pivot away from Pride Month content to focus more on "what players wanted." Jagex CEO broke the news to staff with a post on an internal message board, prompting a rush of complaints—with many workers explaining the content was either already complete or easy to implement. Though Jagex is based in the UK, it's parent company CVC Capital Partners operates multiple companies in the United States. It's a situation that left one employee who spoke to PinkNews questioning whether the studio has caved to "American conservatism." SAG-AFTRA suspends strike and instructs union members to return to workvia Game Developer // It has taken almost a year, but performer union SAG-AFTRA has finally suspended strike action and instructed members to return to work. The decision comes after protracted negotiations with major studios who employ performers under the Interactive Media Agreement. SAG-AFTRA had been striking to secure better working conditions and AI protections for its members, and feels it has now secured a deal that will install vital "AI guardrails."A Switch 2 exclusive Splatoon spinoff was just shadow-announced on Nintendo Todayvia Game Developer // Nintendo did something peculiar this week when it unveiled a Splatoon spinoff out of the blue. That in itself might not sound too strange, but for a short window the announcement was only accessible via the company's new Nintendo Today mobile app. It's a situation that left people without access to the app questioning whether the news was even real. Nintendo Today prevented users from capturing screenshots or footage, only adding to the sense of confusion. It led to this reporter branding the move a "shadow announcement," which in turn left some of our readers perplexed. Can you ever announce and announcement? What does that term even mean? Food for thought. A wonderful new Big Walk trailer melted this reporter's heartvia House House (YouTube) //  The mad lads behind Untitled Goose Game are back with a new jaunt called Big Walk. This one has been on my radar for a while, but the studio finally debuted a gameplay overview during Summer Game Fest and it looks extraordinary in its purity. It's about walking and talking—and therein lies the charm. Players are forced to cooperate to navigate a lush open world, solve puzzles, and embark upon hijinks. Proximity-based communication is the core mechanic in Big Walk—whether that takes the form of voice chat, written text, hand signals, blazing flares, or pictograms—and it looks like it'll lead to all sorts of weird and wonderful antics. It's a pitch that cuts through because it's so unashamedly different, and there's a lot to love about that. I'm looking forward to this one.

TechTarget and Informa Tech’s Digital Business Combine.TechTarget and InformaTechTarget and Informa Tech’s Digital Business Combine.Together, we power an unparalleled network of 220+ online properties covering 10,000+ granular topics, serving an audience of 50+ million professionals with original, objective content from trusted sources. We help you gain critical insights and make more informed decisions across your business priorities.Subway Surfers Blast developer Outplay Entertainment has laid off 21 workersSubway Surfers Blast developer Outplay Entertainment has laid off 21 workers'This step was taken to align our operations with current business.'Chris Kerr, Senior Editor, NewsJune 5, 20251 Min ReadImage via OutplaySubway Surfers Blast and Angry Birds Pop developer Outplay Entertainment has laid off 21 employees.The Scottish studio confirmed the news in a email sent to MobileGamer.biz and said the layoffs were made in response to "current business realities.""This step was taken to align our operations with current business realities and to support a strategic shift toward partnering with publishers for future game releases," wrote Outplay CEO Douglas Hare in the email."This was not a decision we took lightly. We are incredibly grateful to the talented individuals affected, many of whom have made lasting contributions to our games and culture. We are doing everything we can to support them through this transition."Outplay was established in 2010 and is based in Dundee. The company styles itself as the largest independent mobile studio in the UK and claims its roster of titles has amassed over 160 million downloads to date. It now joins a chorus of other studios across the world in making layoffs.Those cuts are frequently made to adapt to what companies often refer to as "headwinds" or the "business realities" of an industry that is still reckoning with the over-investment and bad bets made by decision-makers during the pandemic.In recent months, companies such as People Can Fly, EA, Niantic, Playtime, Meta, Mighty Yell, Devolver, and PlaySide, Embracer, and Cyan Worlds have all made significant cuts. It is, unfortunately, a trend that has become something of a permanent fixture across the video game industry.Related:Read more about:Layoffs & Studio ClosuresTop StoriesAbout the AuthorChris KerrSenior Editor, News, GameDeveloper.comGame Developer news editor Chris Kerr is an award-winning journalist and reporter with over a decade of experience in the game industry. His byline has appeared in notable print and digital publications including Edge, Stuff, Wireframe, International Business Times, and PocketGamer.biz. Throughout his career, Chris has covered major industry events including GDC, PAX Australia, Gamescom, Paris Games Week, and Develop Brighton. He has featured on the judging panel at The Develop Star Awards on multiple occasions and appeared on BBC Radio 5 Live to discuss breaking news.See more from Chris KerrDaily news, dev blogs, and stories from Game Developer straight to your inboxStay UpdatedYou May Also Like

Embracer intends to spin off Coffee Stain Group by the end of 2025, with remaining business rebranded as Fellowship Entertainment "It feels both exciting and, honestly, a little bit scary - but in a good way," said co-founder and Group CEO of Coffee Stain News by Vikki Blake Contributor Published on May 22, 2025 Embracer intends to spin off its Coffee Stain Group into a "standalone group of community-driven game developers and publishers" by the end of 2025. The company announced it would split into three individual companies - Asmodee, Coffee Stain and Friends, and Fellowship Entertainment (previously known as Middle Earth & Friends) - in April 2024. In this case, Coffee Stain Group - which will consist of "more than 250 passionate game developers and publishers, focused on community driven experiences" - will include Coffee Stain, Ghost Ship, and Tuxedo Labs as well as "certain studios" from Amplifier Game Invest, all based in Scandinavia. Anton Westbergh, CEO and co-founder of Coffee Stain, will become Group CEO. "The shares in Coffee Stain Group will be distributed to the shareholders of Embracer, and are intended to be listed on the Nasdaq First North Premier Growth Market in Stockholm. Fellowship Entertainment (current Embracer Group) will remain listed on Nasdaq Stockholm and have around 6000 employees across 30 countries, "stewarding" the commercial rights to J.R.R. Tolkien's works, as well as IPs like Kingdom Come Deliverance, Metro, Dead Island, Killing Floor, Darksiders, Remnant, and Tomb Raider. “We’re really proud of everything we’ve built as part of Embracer, and grateful for the support and trust we’ve received over the years. Now, as we take the step to become a separately listed company, it feels both exciting and, honestly, a little bit scary - but in a good way," said Anton Westbergh, co-founder and Group CEO of Coffee Stain. The games industry is more competitive than ever, but also more rewarding if you do things right, and we believe this move gives us the clarity and control to navigate the landscape better on our own terms. We can now focus even more on what we do best - supporting our developers, staying close to our communities, and building an even brighter future for Coffee Stain. Lars Wingefors, co-founder and Group CEO of Embracer, added: “Coffee Stain Group has incredible talent, IPs and communities. To date, it has been a true recipe for success. I am confident in Anton's strategy and leadership and see a clear long-term opportunity in attracting and enabling partnerships with like-minded independent game developers and talents." Earlier today, we reported THQ Nordic's studio Campfire Cabal has returned after being shuttered in 2023. Announcing the news, the developer disputed it had ever "shut down" despite closing as part of THQ Nordic's parent company Embracer's restructuring efforts.

Embracer Group sees net sales across PC/console and mobile games fall in FY2024/25 A "solid" final quarter is attributed to Kingdom Come Deliverance 2, which reached 3m sales News by Vikki Blake Contributor Published on May 22, 2025 Embracer Group has published its financial results for the fourth quarter ending March 2025, reporting declines across its PC/console and mobile segments on both the quarter and the fiscal year. Full-year accounts also reveal Embracer has cut the number of its total game development projects from 141 to 108, and its headcount from 9692 to 7180. 5378 of those staff are game developers. Here's what you need to know: The numbers Q4 (3 months ended March 31, 2025) Net sales: SEK 5.4 billion ($560.5 million, down 6% year-on-year) PC/Console games: SEK 3 billion ($311.4 million, down 2% year-on-year) Mobile: SEK 943 million ($97.9 million, down 31% year-on-year) Entertainment & services: SEK 1.3 billion ($134.9 million, up 9% year-on-year) Full-year (12 months ended March 31, 2025) Net sales: SEK 22.3 billion ($2.32 billion, down 18% year-on-year) PC/Console games: SEK 1.5 billion ($155.7 million, down 27% year-on-year) Mobile: SEK 5.3 billion ($550 million, down 9% year-on-year) Entertainment & services: SEK 6.5 billion ($674.6 million, down 7% year-on-year) Embracer attributes its "solid" quarter to the performance of Kingdom Come Deliverance 2, which reached three million copies sold and "maintained a highly positive player and critic reception." It believes the DLC and free updates planned across the next 12 months will keep players "excited and deeply engaged." The firm makes a distinction between actual and organic growth, and states that though its mobile games sales fell by 31% between January and March 2025, its organic growth was 30%. It also states its PC/console games sales displayed an "organic growth" of 22%. Embracer also noted it had made "significant progress in the process of transforming the Group," with the divestment of Easybrain and Asmodee successfully completed, and Coffee Stain Group expected to be spun off by the end of the calendar year. "In a solid ending to the year, net sales grew by 19% organically to SEK 5.4 billion, while Adjusted EBIT grew by 44% year-on-year pro forma to SEK 1.1 billion, with a free cash flow of SEK 1.0 billion in Q4," said CEO Lars Wingefors. "Kingdom Come: Deliverance II continued to perform in Q4, and reached 3 million sold copies after quarter-end. Organic growth within Mobile accelerated to 30% year-on-year. By the end of 2025, we now plan to spin off Coffee Stain Group, a group of leading community- driven game developers and publishers. We have a strong financial position, and we remain focused on enhancing efficiency and long-term resilience ahead of the spin-off. Looking ahead Right now, the group expects to release 76 games across FY 2025/26, "with a mix of new IPs, sequels, and remasters," including Metal Eden, Gothic 1 Remake, Reanimal, Fellowship, Wreckreation, the next SpongeBob SquarePants game, Norse: Oath of Blood, and Deep Rock Galactic: Rogue Core. It also makes explcit mention of two AAA games; Killing Floor 3 - which is now scheduled for Q2 - and Marvel 1943: Rise of the Hydra, which is scheduled to release sometime in the 25/26 fiscal year. Embracer "expect[s] Marvel 1943: Rise of Hydra to drive notable revenues but to have lower margins due to shared economics with several other partners." A previously mentioned third AAA game has been delayed to 2026/27 as management takes the "prudent view" that "the game will likely need a few more quarters to polish." An additional nine AAA games are planned across 2027/28 and 2028/29 financial years. Earlier today, we reported THQ Nordic's studio Campfire Cabal has returned after being shuttered in 2023. Announcing the news, the developer said it had "never shut down" despite closing as part of THQ Nordic's parent company Embracer's restructuring efforts.

Embracer Group announced that it would split into three separate entities in April 2024.