Funding
Ongoing coverage on Funding.
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MMO Business Roundup: Xbox is ‘back to growth,’ Kotick is on the Skydance board, and Aion 2 misses projections
Xbox is reportedly returning to growth, according to Xbox boss Asha Sharma. Former Activision Blizzard CEO Bobby Kotick has joined the board of Skydance, the company formed from the Warner Bros. and Paramount merger. NCsoft's earnings forecast was lowered due to Aion 2's performance, while Necesse developer Fair Games was acquired by Fireshine Games. Additionally, Gardens Interactive, a studio founded by former Journey and Sky: Children of the Light developers, secured $35 million in Series B funding.
GamesIndustry.biz to host panel at Game Republic's Investment Summit at MCM Comic Con October 2026
GamesIndustry.biz will host an Investment Panel at Game Republic's Investment Summit at MCM Comic Con, featuring discussions on game funding, development, and building sustainable studios. Separately, Paramount and Warner Bros. Discovery have completed their $111 billion merger, now operating under the name Skydance, with potential for "difficult decisions" and "changes and impacts" as the new entity integrates.
Pantheon Rise of the Fallen answers prickly questions about a roadmap, dev priorities, and funding
Pantheon: Rise of the Fallen developers addressed player concerns regarding a roadmap, development priorities, and funding in a recent Q&A. A roadmap will only be provided once the game is in a more stable and balanced state to help rebuild its player base. The team is focusing on internal communication and management shifts, with a seasons-like project management style proposed. While current funding is deemed sufficient for a 1.0 launch, additional funding could accelerate development.
GNOG and Goodbye Volcano High dev KO_OP share that they are laying off staff in the only, remotely good statement I've seen in a while
Independent studio KO_OP, known for games like GNOG and Goodbye Volcano High, has announced layoffs affecting 13 staff members shortly after the release of their latest game, Young Suns. The studio cited a radical change in the games funding landscape and an inability to secure new project funding as the primary reasons. KO_OP emphasized a transparent, democratically decided process focused on studio survival rather than profit maximization, and expressed intent to rehire affected developers if future funding is secured.
Geoff Keighley and Mark Cerny create a fellowship program to fund and help young game designers
Geoff Keighley and Mark Cerny have launched the Nova Games Foundation, a grant program designed to fund and mentor aspiring game designers. The foundation will provide initial funding of $100,000 to 20 selected recipients from university programs, with potential for up to $500,000 more for promising projects. The program offers mentorship and publisher introductions with no strings attached, allowing creators to retain ownership of their work.
European Games Developer Federation announces 2026-28 board, Hendrik Lesser re-elected as president
The European Games Developer Federation (EGDF) has announced its board for 2026-2028, with Hendrik Lesser re-elected as president. The organization will focus on improving developer access to funding, talent, and skills, and aims to become the first AI-based European trade association. The EGDF also highlighted the European games industry's €24 billion turnover in 2024, with over 95,000 employees across 6,600 studios.
Creative Artists Agency spins up indie funding venture Frame1Games
Creative Artists Agency has launched Frame1Games, a new venture aimed at supporting independent game developers. The program will provide multi-million dollar investments, mentorship from industry leaders, and access to strategic partners. Frame1Games will be led by veteran indie funding partner Jared Yeager and spearheaded by CAA head of games Derek Douglas.
Resolute Games says with or without external funding, VR MMORPG ‘Eldramoor will get released’
Resolute Games' VR MMORPG Eldramoor is on track for release, with studio lead Lynn Souza stating that development will continue with or without external funding. The game, which previously raised $171,000 on Kickstarter, is currently selling preorders with beta access slated for November. Souza also mentioned plans to expand the development team.
A risk-averse video game industry is failing marginalized developers
The video game industry is criticized for being risk-averse, leading to difficulties for marginalized developers like Nazih Fares and his team behind the satirical card game 'The Arab League of Misfits.' Despite positive feedback, their game is deemed too risky by potential funders due to its Arab identity and heritage focus. This trend is exacerbated by industry-wide struggles, layoffs, and a preference for safe, licensed IPs over supporting new voices.
After Xbox Pulls Funding, Hitman Dev Is Closing A Studio And Laying People Off
IO Interactive is closing its Istanbul studio and laying off staff after Xbox withdrew funding for its upcoming RPG, Project Fantasy. The studio has regained full ownership of the project and its IP, but these cuts were deemed necessary for the company's long-term future and to focus on its core internal titles.
IO Interactive Is Closing Its Istanbul Studio Following Loss Of Funding
IO Interactive is closing its Istanbul studio due to a loss of funding for Project Fantasy, stemming from a partnership with Xbox. The company plans to continue developing the game independently.
Hitman and 007 First Light dev IO Interactive regains "full ownership" of its mysterious online RPG project after Xbox reportedly pulled funding
IO Interactive has regained full ownership of its online RPG Project Fantasy after Xbox reportedly pulled its funding. The developer will now independently fund and continue development of the project, while also making staffing changes and closing its Istanbul studio to focus on its core internal titles.
007 developer suffers layoffs and Blade faces cancellation as Xbox cuts funding
Microsoft is reportedly considering closing at least five studios, including Arkane Studios, which is working on Marvel's Blade, and has pulled funding for IO Interactive's Project Fantasy. These cuts follow Xbox boss Asha Sharma's promise of a company 'reset' and are expected to lead to significant layoffs. While Arkane's Blade is at risk of cancellation due to budget overruns, IO Interactive remains committed to Project Fantasy despite the funding setback.
Ahead of next week's expected Xbox bloodbath, IO Interactive loses funding for its online fantasy RPG
IO Interactive has lost external funding for its online fantasy RPG, Project Fantasy, leading to anticipated layoffs. Microsoft confirmed it was the partner that pulled funding as it re-evaluates its investments. This news comes shortly after the successful launch of 007 First Light, but casts a shadow over the future of Project Fantasy and potentially other studios working with Microsoft.
Planescape: Torment 2 was greenlit by Wizards of the Coast, 'they were really into what we were doing', but it refused to fund the sequel, and nobody else was interested
Beamdog and former BioWare writer David Gaider pitched a sequel to Planescape: Torment, titled Planescape: Unraveled, to Wizards of the Coast. While Wizards of the Coast was initially receptive to the concept, they declined to fund the project themselves, and no other investors were found. The sequel was ultimately shelved by the end of 2016.
Brendan "PlayerUnknown" Greene "moves forward with a smaller team", as Prologue: Go Wayback! studio struggles to find funding
Brendan Greene, creator of PUBG and Prologue: Go Wayback!, announced that his studio, PlayerUnknown Productions, is moving forward with a smaller team due to struggles in securing additional funding. Greene expressed gratitude for the team's professionalism despite the challenges and acknowledged the difficulty of maintaining an independent studio without consistent financial backing.
A small band of Nightdive rebels united to make the System Shock remake after it 'ran out of money' midway…
The development of the System Shock remake faced significant challenges, including running out of money in 2018. A dedicated team at Nightdive Studios, led by producer Daniel Grayshon, formed a small group to ensure the game's completion. Despite using Unreal Engine 4 with limited experience, they successfully delivered the acclaimed remake, which released in 2023 after an eight-year development cycle.
Aphelion and Life is Strange developer Don't Nod in trouble as it struggles to secure funding for its next project
French studio Don't Nod, known for Life is Strange and Aphelion, is facing financial difficulties and may run out of cash by November as co-owner Tencent is unwilling to fund its next project or increase its stake. The company is seeking other publishers for funding, but discussions have not yet yielded commitments. This situation could lead to layoffs and a scaled-back development scope for its upcoming game, Project P14.
BioWare's co-founder fought to make Baldur's Gate 3 for over a decade, then Larian did it instead: 'I…
BioWare co-founder Trent Oster discusses the long and difficult journey to get Baldur's Gate 3 made, with multiple studios like Black Isle, Obsidian, and Beamdog attempting and failing to secure funding over two decades. Beamdog, led by Oster, pitched a version to Wizards of the Coast but ultimately could not secure the necessary $20 million budget, leading them to pursue other projects. Oster reflects on Larian Studios' success with Baldur's Gate 3, acknowledging their greater capital and ability to execute their vision at a high scale.
Drums, cash grants, and bubbling capybaras: How Latin America's game dev creatives are outgrowing outsourcing
Latin American game developers are increasingly recognized for their creative output, with original titles like Family Reunion and Black Sailors emerging. While many studios engage in outsourcing to secure funding and gain experience, there's a growing movement to leverage the region's rich cultures and histories for unique game development. Government grants and international exposure are playing crucial roles in supporting these original projects, though challenges in securing direct funding and competing with established markets persist.
