Business Strategy
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Netflix shutters Night School Studio and Moonloot Games
Netflix has closed its internal game development studios Night School Studio and Moonloot Games, alongside eliminating additional roles within its gaming division. Night School Studio, known for Oxenfree and its sequel, recently released Unhinged. This move leaves Next Games as Netflix's sole internal studio, as the company refines its gaming strategy around four key pillars.
Netflix Closes Two More Studios
Netflix has closed two more of its game development studios, Night School and Moonloot, as part of a strategic shift to focus on games for kids, party games, story-driven titles, and games with mainstream hooks. This follows recent layoffs at Refactor Games, despite the success of their cloud-based titles like 'Unhinged'.
Testronic appoints Sonia Kerr as CEO, Sharon Baylay-Bell becomes company chair
Testronic has appointed Sonia Kerr as its new CEO, succeeding Sharon Baylay-Bell, who will now serve as company chair. Kerr, formerly CFO at XR Games, brings experience in leading high-growth digital businesses. The company also announced Mike Fitzgerald as Chief Revenue Officer and Samantha Williams as Chief Commercial Officer, reinforcing its commitment to its 'Player-Focused, Partner-First' strategy.
Xbox leadership's words are drowned out by their actions
Despite assurances from Xbox leadership, the company's actions, including mass layoffs and studio closures, paint a grim picture for its talent and future projects. While executives like Asha Sharma mention upcoming games like The Elder Scrolls 6, these words are seen as empty promises contrasting with the reality of job cuts at studios like id Software and Bethesda.
Kudos Games Services expands leadership team with Testronic and Team17 execs
Kudos Games Services has appointed Michael Hanna as Chief Operating Officer and Anna Hurley as Non-Executive Director to its senior leadership team. Hanna, formerly of Testronic, will focus on operational excellence and international growth, while Hurley, previously with Team17, will lead commercial strategy. The article also notes Devolver Digital's intention to go private later this year due to market volatility and a desire to focus on long-term company health.
Roblox value tanks 72% as viral hits dry up and execs try to ditch "clickbait-y, or kind of cash grabby-type games" for babies and pursue an older crowd
Roblox's stock has fallen 72% following its Q2 earnings report, attributed to a shift in strategy from viral hits to 'evergreen' games targeting an older demographic. While engagement hours met expectations, monetization fell short due to a transition from high-monetizing games to experiences with lower hourly revenue, particularly impacting younger users.
Xbox Version Of PlayStation Platinum Trophy Teased For Later This Year
Xbox CEO Asha Sharma has teased that an equivalent to PlayStation's Platinum trophy system for Xbox achievements could arrive later this year. An update to the Xbox achievement system is also rolling out, allowing users to sort games by name, completion percentage, Gamerscore, and achievement count. Sharma's comments come as she works to "reset" the Xbox business for profitability and growth.
EA’s Saudi takeover will be "a real waste" if it turns the publishers into a "sequel-and-mega-franchise machine", Helldivers 2 studio boss says
Shams Jorjani, CEO of Arrowhead Game Studios, expressed concern that Electronic Arts' recent $55 billion acquisition by Saudi Arabian investors could lead the publisher to focus solely on sequels and mega-franchises, potentially wasting its diverse game catalog. He hopes for continued business and creative diversity within EA, despite the consolidation and significant debt incurred by the deal, which may lead to cost-cutting measures and layoffs.
Rockstar's great Midnight Club racing series was killed off for one simple reason, and you can probably guess what…
Former Rockstar designer Kris Roberts explained that the Midnight Club racing series was canceled primarily due to its perceived lower status compared to Grand Theft Auto. Internal conflicts between studios and missed deadlines also contributed, but the overwhelming focus on the GTA franchise ultimately led to the series' demise, despite critical acclaim for titles like Midnight Club: Los Angeles.
Morning Postmortems/Retrospectives
This article analyzes Tencent's unsuccessful attempt to compete with the Grand Theft Auto franchise. It delves into the business strategies and game development challenges faced by Tencent in this endeavor.
PlayStation’s Response to the Physical Disc Backlash Is Not Reassuring
Sony Group Corporation has confirmed its decision to cease new game disc production for PlayStation consoles starting January 2028, despite significant backlash from fans. The company cites the overall progression of digitalization as the primary reason, with CFO Lin Tao stating that the decision was carefully considered and will be cautiously moved forward. While acknowledging fan sentiment, Sony does not anticipate a significant short-term or long-term business impact, as digital sales already constitute the majority of their software revenue.
Xbox Could Potentially Have a “Window” to Leave Steam – Rumor
A rumor suggests that Microsoft, under Xbox's new strategy, might be planning to exit Steam for its PC releases. While Jez Corden of Windows Central reported that Microsoft has plans which could allow them to leave Steam, he also expressed doubt due to the significant revenue involved. This speculation follows recent Xbox console exclusive announcements and price hikes.
Sony to Investors: Player Anger Over Disc Cuts Hasn’t Dented the Business
Sony's CFO stated that the discontinuation of physical game discs has not negatively impacted the company's business, despite player backlash. The company's confidence is based on the high digital download ratio, which reached 82% for full game software across PS4 and PS5. Sony plans to end disc production in 2028, prioritizing digital sales for increased revenue.
Xbox to double down on its 'strongest franchises' as boss sets crazy new goals
Xbox CEO Asha Sharma has outlined ambitious goals to reverse the brand's fortunes by fiscal year 2027, focusing on strengthening major franchises like Minecraft, Call of Duty, and Halo, and prioritizing 'biggest new ideas'. The plan includes improving profits and player growth, with a long-term ambition to entertain half a billion people daily by 2030. This strategy shift emphasizes console revenue and established IPs, potentially at the expense of newer or less established titles.
Xbox CEO declares priorities after 'reset'
Xbox CEO Asha Sharma outlined the platform's priorities for FY27 following recent layoffs and studio divestments. The strategy, based on a 'four C's' framework, emphasizes console gaming, major franchises, transforming Minecraft into a creator platform, and expanding transmedia plans across film, television, and consumer products.
Here Is Xbox CEO’s Plan To Turn Things Around
Xbox CEO Asha Sharma outlined a new strategy focused on strengthening the platform, growing games into global franchises, making Minecraft a creator platform, and extending beloved game worlds. Despite a recent revenue decrease, Sharma aims for Xbox to return to growth by the end of fiscal year 2027, with plans for significant expansion in games, film, TV, and consumer products.
Xbox is (probably) not for sale | Opinion
Despite recent financial struggles and layoffs, Microsoft is unlikely to sell or spin off its Xbox division. The article argues that the financial impact of Xbox on Microsoft's overall business is minimal, making it not a significant drag. Furthermore, finding a suitable buyer with the necessary capital and without regulatory issues is highly improbable, suggesting Xbox will remain part of Microsoft in the foreseeable future.
"We will not live on past successes or be trapped by past failures" – Xbox CEO outlines priorities to turn platform around in FY27
Xbox CEO Asha Sharma has outlined a new strategy focused on a console-led approach, global franchises, and enhancing Minecraft as a creator platform to drive growth. Despite a significant revenue decline last year, Sharma expressed confidence in returning the platform to growth by the end of fiscal year 2027 by investing in player-valued experiences. Microsoft CEO Satya Nadella also commented on the need for necessary decisions, including layoffs and studio divestments, to ensure long-term growth.
Remakes are the backbone to Capcom's success as they provide 'financial resources' for new Resident Evil games or standalone ideas like Pragmata
Capcom's producer Masachika Kawata explains how remakes are crucial for the company's financial success, providing resources for new Resident Evil titles and original IPs like Pragmata. While remakes like Resident Evil 4 are highly successful, Capcom aims to balance them with new game development to foster innovation and hone developer skills.
Sony finally discusses PS5 physical disc backlash and it's not good news
Sony Interactive Entertainment's Chief Financial Officer, Lin Tao, addressed investor concerns regarding the company's decision to cease PlayStation 5 physical disc production after 2027. Tao cited the overall digitalization of content as the primary driver for this shift, acknowledging community backlash but stating Sony will cautiously proceed with its plans. The company also discussed how it plans to differentiate its hardware from PCs in an increasingly digital market.
