Business Strategy
Ongoing coverage on Business Strategy.
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Square Enix FY26 operating income surges 34.9% despite net sales decline
Square Enix reported a significant surge in operating income for the fiscal year ending March 31, 2026, driven by strong sales of HD Games like Final Fantasy Tactics – The Ivalice Chronicles and Dragon Quest 7 Reimagined, despite a decline in net sales. The company is focusing on quality over quantity and strengthening its development structure as part of its ongoing three-year plan.
"FromSoftware is making steady progress" amid push "to develop IP in games" and film, says owner Kadokawa as Elden Ring movie looms
FromSoftware's parent company, Kadokawa, is focusing on developing its intellectual property for both games and film adaptations, including an Elden Ring movie in production with A24. Despite anticipating a profit drop in 2026 due to Elden Ring DLC, Kadokawa aims to expand FromSoftware's global fanbase and revamp its business model through media mix development, with projects like a Sekiro anime and a Bloodborne animated movie also in the works.
Xbox CEO Wants To Know If You Spell It "Xbox" Or "XBOX"
Xbox CEO Asha Sharma is polling players on whether the brand name should be spelled "Xbox" or "XBOX," with "XBOX" currently leading. The discussion comes as Xbox faces challenges, including declining hardware and services revenue and a shift towards multiplatform releases, with games like Call of Duty no longer being day-one additions to Game Pass.
Sega Explains Why Exactly It Cancelled Its "Super Game"
Sega has officially cancelled its ambitious "Super Game" project, a planned AAA online title intended to be a new form of entertainment. The company cited intensifying market competition, the emergence of similar competing titles, and its own business conditions as reasons for discontinuing development. No additional costs were incurred due to the cancellation, and Sega will continue to focus on its major intellectual properties.
SEGA Has Cancelled Its Super Game Project, And Is Moving Away From Live-Service
Sega has officially canceled its five-year-old Super Game Project, reallocating resources from free-to-play and live-service development to focus on full game releases. The company plans to launch eight full games by fiscal year 2028, shifting approximately 100 employees from F2P to full game development teams. This strategic shift comes after significant investment in the Super Game project, which aimed to blend arcade expertise with emerging trends like cloud gaming and NFTs.
Nintendo president comments on decision for raising Switch 2’s price
Nintendo president Shuntaro Furukawa explained the decision to increase the price of the upcoming Nintendo Switch 2 globally. The price adjustment is a response to rising costs of components, memory, oil, and unfavorable foreign exchange rates, which are projected to impact hardware profitability long-term. Furukawa apologized for the increase and promised a strong software lineup to compensate.
Unity Q1 revenue rises 17%, posts $347m loss following IronSource closure
Unity reported a 17% year-on-year revenue increase to $508 million for Q1 2026, with Grow Solutions showing a 23% rise. However, the company posted a significant net loss of $347 million, largely due to $279 million in impairment charges from the closure of IronSource and the divestiture of Supersonic. Unity also launched a new suite of AI tools for game development.
GameStop CEO Selling GameStop Stuff On Ebay To Fund Buyout Of Ebay
GameStop CEO Ryan Cohen is attempting to acquire eBay for over $50 billion and has listed GameStop-related items on eBay, including store signs and a Halo 3 flag, to help fund the buyout. Cohen claims this is a way to pay for eBay and pokes fun at skepticism surrounding his leveraged deal proposal. Market figures like Michael Burry have expressed doubts about the financial feasibility of the acquisition.
Reggie-Fils Aime discusses what went wrong with Wii U
Former Nintendo of America boss Reggie Fils-Aime discussed the Wii U's commercial failure, citing issues with product release timelines and a lack of compelling software compared to competitors. He also revealed that the Nintendo Switch's launch planning began during a meeting with the late Satoru Iwata, who had learned his cancer had returned.
Microsoft finally admits everyone hates Copilot: Xbox CEO confirms it's "winding down" Copilot on mobile…
Xbox CEO Asha Sharma confirmed that Microsoft is winding down its Copilot AI assistant on mobile and halting development for consoles. This decision is part of a broader strategic shift for Xbox, which includes leadership changes and a refocusing of AI efforts towards enhancing real-time graphics and addressing player issues. The company is also re-evaluating the pricing of its Game Pass service.
Microsoft ends Copilot AI on Xbox to help 'get the business back on track,' as new CEO simultaneously welcomes…
Microsoft's Xbox division is shifting its strategy away from AI features, with CEO Asha Sharma announcing the discontinuation of Copilot on mobile and console. This move coincides with Sharma bringing in several former colleagues from Microsoft's CoreAI division to leadership roles within Xbox. The company aims to focus on deepening community connections and addressing player and developer friction to improve business performance.
New Xbox boss continues leadership overhaul with several former colleagues and AI experts
New Xbox CEO Asha Sharma is implementing a significant leadership overhaul, bringing in former colleagues from Microsoft's CoreAI team and AI experts. This restructuring aims to improve efficiency and focus on community engagement, with several existing executives stepping down or taking leaves of absence. The changes reflect a strategic shift towards leveraging AI and addressing declining console hardware revenue.
New Remedy CEO wants to preserve small budgets and break into Asia
Newly appointed Remedy Entertainment CEO Jean-Charles Gaudechon aims to maintain the company's focus on developing high-quality games with manageable budgets, leveraging their proprietary Northlight engine. He also expressed a strategic interest in expanding the company's reach into Asian markets, particularly China, through local partnerships. The company reported profitable first-quarter results, with Control having sold over 6 million copies and Alan Wake 2 continuing to generate royalties.
Take-Two CEO says GTA 6 isn't coming to PC day one because console players are the 'core consumer'…
Take-Two Interactive CEO Strauss Zelnick stated that Grand Theft Auto 6 will not launch on PC on day one, as Rockstar Games is prioritizing its 'core consumer' on consoles. This strategy, also seen with previous Rockstar titles, may encourage players to purchase the game again upon its eventual PC release.
New Xbox CEO Taps More AI Veterans To Help Lead Xbox
New Xbox CEO Asha Sharma is restructuring the leadership team, bringing in several individuals with backgrounds in Artificial Intelligence from Microsoft's CoreAI group. These appointments aim to improve how Xbox operates, focusing on faster impact, community engagement, and technical depth. The changes include new leaders for technical, design, growth, and engineering roles, while some existing Xbox executives are stepping down or taking leaves of absence.
Xbox is Exploring “a Range of Options” to Reach 30 Percent Profit Margins by 2030 – Rumor
Xbox is reportedly exploring various strategies to achieve a 30 percent profit margin by 2030, including potential cost-saving measures and a shift towards being more software-focused. These efforts are influenced by pressure from Microsoft and a desire to capitalize on upcoming hardware sales, such as for Grand Theft Auto 6. The company has also adjusted its Game Pass strategy, with new Call of Duty titles no longer launching day one on the service.
Business and Finance
GameStop's CEO expresses frustration with public misunderstanding of his business strategies, particularly concerning acquisitions and financial dealings. The article touches on the public's focus on immediate financial needs over broader business objectives.
PC players aren't Grand Theft Auto 6's 'core' audience, Take-Two CEO says, and that's why we…
Take-Two CEO Strauss Zelnick stated that console players are the 'core' audience for Grand Theft Auto 6, explaining the decision to initially launch the game on consoles and not PC. While PC releases now account for a significant portion of sales for titles like NBA 2K, Zelnick emphasized prioritizing the console market for the company's biggest releases.
The Steam Controller + Zach Cregger's Resident Evil Movie | Kurt & Lucy Gotcha Covered
This article touches on various gaming-related topics including the Steam Controller, a potential Resident Evil movie directed by Zach Cregger, and a discussion about Xbox's future strategy. It also mentions trailers and announcements for games like Subnautica 2 and Star Wars: Galactic Siege.
GameStop confirms $56 billion eBay acquisition bid, promises $2 billion in cuts at the company if the takeover is…
GameStop has confirmed a non-binding acquisition offer for eBay, valued at approximately $55.5 billion in a half-cash, half-stock deal. The company plans to implement significant cost reductions, aiming for $2 billion in annualized savings within twelve months post-acquisition, primarily targeting sales, marketing, product development, and general administrative expenses. GameStop CEO Ryan Cohen expressed confidence in the company's ability to leverage its existing retail footprint and improve eBay's operational efficiency.
