Joost van Dreunen
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Steam earned Valve $15 billion in revenue so far this year, with Crimson Desert alone topping $203 million according to…
Steam has generated $15 billion in gross revenue so far this year, with projections indicating it will exceed $20 billion by year's end. Crimson Desert emerged as the most successful new intellectual property on the platform, earning over $203 million. While no single game dominated, titles like Forza Horizon 6 and Resident Evil Requiem also performed strongly, contributing to Steam's significant revenue growth.
'All options are on the table, considering the drastic measure already put in place' — Could Microsoft sell Xbox? Analysts say it's too expensive for that, but that it could be dismantled piece by piece
Industry analysts are discussing the potential sale or dismantling of Microsoft's Xbox division amidst a significant restructuring. While a full sale is considered unlikely due to its high cost, analysts suggest that individual studios or intellectual properties might be sold off piecemeal. Xbox CEO Asha Sharma has acknowledged the business is 'not healthy' and is implementing changes to improve its financial performance and strategic direction.
Analysts expect GTA 6 could sell up to 30 million copies at launch, but are unsure if it can "surpass the incredible longevity and massive sales of 5" in the long run
Analysts predict Grand Theft Auto 6 will achieve massive launch sales, potentially reaching 30 million units, but question its long-term longevity compared to Grand Theft Auto 5's sustained success. Factors like the game's $80 price point and the limited initial console install base are discussed as potential influences on its long-term performance, with some analysts expecting per-player spending to be higher despite potentially lower overall sales than its predecessor.
Tencent, Xbox, Game Angels, Ansible and Flick to speak on Game Republic New Horizons investor stage
The Game Republic New Horizons conference will feature speakers from Tencent, Xbox, The Game Angels, Ansible, and Flick Games on its investor stage. The event, co-hosted by Games London, aims to connect game studios with investors and funders. Separately, Micron CEO Sanjay Mehrotra discussed the ongoing global chip shortage, predicting gradual improvement in 2028 due to increased demand from data centers powering AI.
Micron says chip shortage will "improve gradually" in 2028
Micron CEO Sanjay Mehrotra stated that the global RAM and NAND chip shortage, exacerbated by AI demand, is expected to persist through 2027 and gradually improve in 2028. He admitted that the company has no visibility on when supply will meet demand, citing long fab construction times, worker shortages, and regulatory hurdles. This shortage is driving up component costs, impacting hardware markets and console prices, with companies like Valve facing higher costs for their Steam Machine.
Grand Theft Auto 6’s $80 Price Won’t Change Current $70 Baseline for AAA Games, Say Analysts
Industry analysts suggest that Grand Theft Auto 6's $80 price point will not immediately shift the AAA game baseline but may lead to more pricing variance. While some marquee titles might adopt higher prices, many games will likely stick to the $70 baseline due to consumer sensitivity and the need to 'earn' higher prices through established franchise value. Companies like Nintendo and Rockstar Games have unique pricing power due to their strong brand recognition and perceived value.
'Above $1,000 Is the Floor': Analysts Predict PS6 Price, and It's Not Good
Industry analysts predict that the PlayStation 6 could launch at a price point exceeding $1,000 due to ongoing component shortages and market trends. While some believe Sony will maintain a price below $999 for marketing reasons, others foresee a significant increase, potentially delaying the console's release until 2028.
GTA 6: Will $80 be the new standard, and will more publishers start to skip physical releases?
Grand Theft Auto 6 will launch at $79.99 for the standard edition and $99.99 for the ultimate edition, with physical copies containing only a download code. Analysts discuss whether this price point will become a new industry standard and if publishers will increasingly abandon physical disc releases. While some believe this pricing is justified for a title of GTA 6's caliber, others caution against a widespread shift due to potential consumer backlash.
"This is going to be a niche device" – Analysts react to the $1,000+ Steam Machine price reveal
Industry analysts are reacting to Valve's Steam Machine pricing, which starts at $1,049, significantly higher than initially anticipated. This increase is attributed to global component shortages, particularly memory and storage, exacerbated by the generative AI boom. Experts believe this high price point positions the Steam Machine as a niche product and raises questions about the future pricing of upcoming consoles from Sony and Microsoft, with some predicting they will also exceed $1,000.
What went wrong with Sega's $776m acquisition of Angry Birds giant Rovio?
Sega Sammy's $776 million acquisition of Rovio has faced significant challenges, resulting in a $200 million impairment due to profitability falling below forecasts. Issues include difficulties integrating Rovio's technology and the mature state of the Angry Birds franchise in a rapidly changing mobile market with increased user acquisition costs and platform shifts. While Take-Two's acquisition of Zynga eventually proved successful, Sega's situation highlights the complexities and risks involved in acquiring mobile game companies, particularly when relying heavily on established IP.
XBOX CEO Says New Business Model is Needed “Rather Than Premium, High-Performance” Consoles
Xbox CEO Asha Sharma stated that the company is exploring new business models for consoles, moving away from solely focusing on premium, high-performance hardware due to rising costs. This approach contrasts with previous statements from Sarah Bond about a "very premium" next-gen console. Industry analysts suggest cloud gaming subscriptions as a potential alternative for budget-conscious gamers.
Gaming Hardware Prices Are Likely Going to Go Even Higher, Say Analysts
Industry analysts predict that gaming hardware prices will continue to rise due to factors like RAM costs, geopolitical situations, and currency fluctuations. While some regions like Asia and MENA are showing resilience, Western markets are particularly affected by these price hikes. Experts suggest that a higher pricing floor for gaming hardware is likely, potentially shifting the industry towards subscription and cloud-based models.
"Nobody's making games for the retired people" – The growing yet underserved market for grey gamers
The video game industry is largely overlooking the growing market of older players, often referred to as 'grey gamers.' Despite an aging global population and increasing numbers of individuals over 40, 50, and 60 playing games, developers are slow to cater to this demographic, who possess disposable income and long-term gaming literacy. Experts suggest a shift in industry mindset is needed to capture this substantial and expanding market, which is currently underserved by game design and marketing efforts.
"It's a totally crazy market" – The seismic impact of the AI boom on video game hardware
The surge in demand for AI data centers has caused a significant shortage and price increase for consumer hardware components like RAM and GPUs. This impacts gaming hardware manufacturers such as Nintendo, Valve, and Sony, leading to higher prices for consoles like the PlayStation 5 and potentially delaying new hardware launches like the Steam Machine. The increased costs also affect game development studios by raising the price of essential development hardware.
Gaming Needs More Ads, Expert Says, And A $6 Game Pass Tier
Microsoft Gaming CEO Asha Sharma is reportedly exploring ways to make Xbox Game Pass more affordable, potentially through a lower-priced, ad-supported tier. Industry expert Joost van Dreunen suggests embracing advertising, citing its prevalence in other media, and notes that subscriptions excel at retention but not market growth. Former PlayStation executive Shawn Layden expressed skepticism about Game Pass's current trajectory, while Netflix CEO Greg Peters indicated openness to potential bundle collaborations with Xbox.
Analyst argues Epic’s floundering is a symptom of wider problems with American platforms
Analyst Joost van Dreunen argues that Epic Games' recent struggles, including job cuts, are symptomatic of broader issues within the American gaming industry. He points to the excessive power of digital store platforms, economic factors like tariffs, and a lack of innovation compared to other regions embracing new technologies like generative AI.
Epic Games and Fortnite Might Be in Free-Fall, per Industry Analyst
Industry analyst Joost van Dreunen suggests that Epic Games and its flagship title Fortnite may be facing significant challenges, despite their popularity. He points to recent layoffs, the slow adoption of generative AI in gaming, and ongoing platform holder cost imbalances as contributing factors to a potential decline.
"Fortnite's cultural moment is starting to fade," games analyst says amid mass layoffs, and its downturn is part of the "erosion of American leadership" in video games
Fortnite is experiencing a significant downturn in engagement, contributing to recent layoffs at Epic Games. Industry analyst Joost van Dreunen suggests this decline reflects a broader erosion of American cultural dominance in the video game industry, exacerbated by platform holders capturing disproportionate revenue compared to content creators.
"Fortnite's Cultural Moment Is Starting To Fade," Expert Says
Industry expert Joost van Dreunen suggests that Fortnite's cultural dominance is waning, citing Epic Games' recent layoffs and stagnant user growth as evidence. While Fortnite remains popular, its "forever game" status is questioned, contrasting with Roblox's growth driven by user-generated content. Despite challenges, Epic Games CEO Tim Sweeney is seen as a resilient leader.
Get Ready To Pay More For A Switch 2, Experts Say
Experts and industry figures suggest that the Nintendo Switch 2 may experience a price increase, potentially by the end of the year, due to rising component costs and market trends. While Nintendo has not confirmed a price hike, companies like Sony and Microsoft have recently increased prices for their consoles. Nintendo's president, Shuntaro Furukawa, stated that while no decision has been made, the company will monitor market conditions and profitability if memory costs continue to rise.