Business Strategy
Ongoing coverage on Business Strategy.
Latest coverage
Inside Skybound’s video game strategy
Skybound Entertainment CEO David Alpert and co-chairman Jon Goldman discuss the company's successful video game strategy, including the debut of their in-house studio Quarter Up and the release of Invincible VS. They also touch on ensuring quality across franchise entries and expanding into international markets like Brazil.
Analysts attempt to make sense of Xbox's latest exclusivity pivot
Xbox is undergoing another strategic shift regarding game exclusivity, moving from a multiplatform approach back towards select console exclusives. This pivot, occurring under new leadership, aims to re-establish reasons for consumers to invest in the Xbox ecosystem, balancing a console business with a platform-agnostic publishing strategy.
Elden Ring 'profit leakage' has Kadokawa investors looking for a new boss
Activist investor Oasis Management, now Kadokawa Corporation's largest shareholder, is calling for the ouster of CEO Takeshi Natsuno due to alleged "profit leakage" from Elden Ring's success. Oasis argues that Kadokawa, through its subsidiary FromSoftware, has failed to capitalize fully on its hit titles by partnering with external publishers like Bandai Namco, instead of self-publishing. The company also faced a data leak and a less-than-ideal strategic alliance with Sony.
FromSoftware parent company CEO survives vote to oust at annual shareholder meeting
Kadokawa Group CEO Takeshi Natsuno survived a vote to oust him at the company's annual shareholder meeting, despite calls from major shareholder Oasis Management. Oasis argued that Kadokawa failed to capitalize on Elden Ring's success and experienced profit leakage. Natsuno will remain in his position, and a proposal to appoint Koji Okura to the board was approved.
Kadokawa CEO faces shareholder battle as investors criticise handling of Elden Ring success
Kadokawa CEO Takeshi Natsuno is facing criticism from investors who believe the company failed to fully capitalize on Elden Ring's success. Shareholders suggest Kadokawa should have self-published the game instead of partnering with Bandai Namco Entertainment.
Kadokawa Should Be Making More Money From Elden Ring, Activist Investor Says as CEO Survives Shareholder Vote
Kadokawa's CEO has survived a shareholder vote amidst pressure from an activist investor who argues the company has not adequately profited from Elden Ring's success. The investor believes Kadokawa could be generating more revenue from the popular game.
Elden Ring owner faces tense CEO clash as a battle between Kadokawa and activist shareholders rages on
Activist investor Oasis Management, now Kadokawa's largest shareholder, is challenging the CEO Takeshi Natsuno's position at the Elden Ring publisher's annual investor meeting. Oasis claims profit leakage occurred due to the publishing arrangement for Elden Ring and points to Kadokawa's declining financial performance and a past data breach as reasons for change.
Ori Studio Head Says Game Pass Would Have Worked if Xbox Could “Understand What’s a Good Game”
Moon Studios CEO Thomas Mahler believes Xbox Game Pass could have succeeded if Microsoft had focused on quality over quantity, comparing it unfavorably to premium streaming services. He criticized Xbox's first-party output, citing Starfield as an example of a game that failed to meet the potential of its predecessor, and suggested that Xbox leadership needs a better understanding of what constitutes a "good game" to truly connect with gamers.
Sony say goodbye to PC and hello to AI in their annual business report, which must be a good thing, right?
Sony's latest business report indicates a strategic shift away from releasing first-party games on PC, focusing instead on leveraging Artificial Intelligence to enhance game development productivity and the PlayStation user experience. While the report details AI integration for improving development workflows, transaction efficiency, and content personalization, it notably omits previous mentions of PC releases, suggesting a pivot that may prioritize PlayStation 5 sales.
Sony deletes mention of PC from annual strategy report in favour of a gushing about AI
Sony has removed mentions of PC as a platform for its titles in its latest annual strategy report, shifting focus to Artificial Intelligence. The report now emphasizes AI's role in enhancing creativity, productivity, and the PlayStation experience, including personalized content recommendations and improved visual fidelity.
Rockstar's legal setback, Final Fantasy tax incentives, and PlayStation swaps 'PC' for 'AI' - Patch Notes #57
This week's gaming news includes Rockstar Games facing a trial date for union busting allegations, Sony Interactive Entertainment shifting its business strategy focus from 'PC' to 'AI' in SEC filings, and Microsoft's Xbox division reportedly preparing for studio closures. Additionally, Don't Nod is seeking new financing after Tencent withdrew short-term investment, Shibuya ward is offering Final Fantasy 14 in-game items for tax donations, and Epic Games is merging Unreal Engine 5 and UEFN into a unified Unreal Engine 6. The UK government is also set to implement a ban on social media for under 16s, impacting high-risk features in games.
Report: PlayStation changed first-party single-player PC strategy due to lack of revenue
Sony Interactive Entertainment has reportedly shifted its strategy for releasing first-party single-player games on PC, with CEO Hideaki Nishino confirming that such titles will now be exclusive to PlayStation platforms due to insufficient revenue. Live-service games, however, will continue to be released on both PC and PlayStation 5 to reach a wider audience.
Sony Removes PC Mentions in Annual Report, Discusses Use of AI For Game Development
Sony's latest annual report indicates a shift in business strategy, notably removing mentions of bringing first-party titles to PC and focusing on profitability adjustments due to rising component prices. The company plans to leverage AI for game development to improve productivity and enhance the PlayStation experience, while also continuing cross-media efforts.
Xbox’s Biggest Problems May Still Be Ahead
Xbox is facing significant internal challenges despite a recent showcase of upcoming games like Gears of War: E-Day. CEO Asha Sharma admitted to substantial financial losses and poor investment returns over the past five years, citing issues with funding franchises and inadequate infrastructure. Reports suggest impending layoffs and potential restructuring, including spinning off Xbox as a subsidiary or forming joint ventures, as Microsoft seeks to make its gaming division a sustainable business.
Report: Redundancies at Microsoft owned Zenimax have begun
Microsoft has reportedly begun significant layoffs and studio closures within its Zenimax Media division, which includes Bethesda, id Software, and Arkane Studios. Ninja Theory, Compulsion Games, and Double Fine Productions are also facing potential shutdowns. This news follows recent announcements about Xbox game exclusivity and a reported decline in profitability, indicating a major business reset for the brand.
Xbox Hypes Up Gamescom Return Amid Questions About Its Future
Xbox is confirming its presence at Gamescom, with Gears of War: E-Day headlining playable demos. This comes amid reports of significant internal turmoil, including potential studio closures and layoffs, which Microsoft has disputed. CEO Asha Sharma and Microsoft CEO Satya Nadella have alluded to upcoming changes and the need for Xbox to become a more sustainable business.
Microsoft's games are bigger than Xbox. So just scrap Xbox.
This article argues that Microsoft should discontinue the Xbox as a hardware platform due to its financial unsustainability and focus instead on its game development studios. The author suggests spinning off the gaming division into an independent entity to maximize revenue from its vast portfolio of games like Call of Duty and Minecraft, decoupling them from expensive console hardware.
Former PlayStation boss says Xbox shows a "basic misunderstanding" of the games industry amid leadership changes, mixed messaging, and reports of studio closures
Former PlayStation boss Shawn Layden believes Xbox's recent inconsistent actions, including shifts in publishing strategy and reports of studio closures like Ninja Theory, indicate a fundamental misunderstanding of the games industry. Despite denials from figures like Matthew Ball, these moves have fueled an identity crisis for Xbox, leading to confusion among players and raising concerns about the company's health.
Xbox Shows a “Basic Misunderstanding” of the Gaming Industry, Says Former PlayStation Exec
Former PlayStation Studios boss Shawn Layden believes Xbox's recent actions, including impending layoffs and studio closures, demonstrate a fundamental misunderstanding of the gaming industry. This perspective arises amidst reports of significant financial losses and strategic shifts within Microsoft's gaming division, impacting studios like Ninja Theory, Double Fine, and Compulsion Games.
Ori Dev CEO Says Xbox Was Too Focused On Protecting Its Legacy To Build Its Future
Moon Studios CEO Thomas Mahler believes Xbox's focus on legacy intellectual properties like Halo, Gears of War, and Forza hindered its ability to cultivate new talent and games. He suggests that Xbox should prioritize empowering creative individuals and teams who understand the gaming audience, rather than relying solely on nostalgia.
