Rob Thubron reports via TechSpot: It's a sad case of another day, another round of mass layoffs at a game studio. On this occasion, Destiny developer Bungie has announced it is letting go of 220 employees, or 17% of its workforce. CEO Pete Parsons said the eliminations were due to "financial challenges," which isn't going down well, especially after it was discovered he may have spent over $2.4 million on classic cars after Sony acquired the company, and continued buying them even after the previous layoffs. Bungie blames the job eliminations on "rising costs of development and industry shifts as well as enduring economic conditions." The Sony subsidiary says it needs to make substantial changes to its cost structure and focus development efforts entirely on Destiny and Marathon. The cuts will impact every level of the company, including executives and senior leader roles -- but not Parsons, obviously.

In what appears to be a way of reducing the number of people being laid off, Bungie is moving 155 people to Sony Interactive Entertainment over the next few quarters. Furthermore, a team working on one of Bungie's incubation projects -- an action game set in a brand-new science-fantasy universe -- will be spun off to form a new studio within PlayStation Studios. [...] "This is hitting people who were told they were valued. That they were important. That they were critical to business success. But none of that mattered," wrote Bungie technical UX designer Ash Duong.

Many have called for Parsons to resign. The calls were amplified when he set his X account to private, but it seems the CEO realized that was making things worse and soon set it to public again. What's angering people even further is the discovery of what seems to be Parsons' account on a car bidding site called Bring a Trailer. It shows he has spent $2.4 million on classic cars since September 2022, which includes $500,000 since the October layoffs.

Mobile game developers have voiced increasing frustration with Apple, citing reduced payments, delayed compensation, poor communication, and inadequate support, particularly with the Apple Vision Pro. Apple Insider reports: In February, game developers began expressing frustration over Apple Arcade. They pointed out that while the service was initially profitable, Apple had begun decreasing upfront payments and the per-play "bonus pool." Additionally, the tech giant began to axe projects with little to no warning. According to Mobilegamer.biz, developers continue to be unhappy with how Apple's running its "pay once, play all you want" game subscription service. Developers point out how Apple has delayed payments -- sometimes up to six months -- which has put smaller studios in precarious situations.

Devs are also unhappy with Apple's communication -- or lack thereof. "We can go weeks without hearing from Apple at all and their general response time to emails is three weeks, if they reply at all," one developer told Mobilegamer.biz. Some have even called Apple's tech support "miserable" and the worst they'd seen anywhere. Even the QA and update process is frustrating, prompting some developers to avoid updating their games altogether. [...] One particularly frustrated developer spoke out against Apple Arcade, saying, "It's like an abusive relationship where the abused stays in the relationship hoping the other partner will change and become the person you know they could be." When it comes to the Apple Vision Pro, many game developers are increasingly frustrated with the headset's struggles to run demanding games. And, while Apple wants indie developers to create new games for their new headset, the company "does not provide compensation or make any promises to promote or market the game once it is finished," says Apple Insider.

An anonymous reader quotes a report from Ars Technica: Microsoft's revenue from Xbox console sales was down a whopping 42 percent on a year-over-year basis for the quarter ending in June, the company announced in its latest earnings report. The massive drop continues a long, pronounced slide for sales of Microsoft's gaming hardware—the Xbox line has now shown year-over-year declines in hardware sales revenue in six of the last seven calendar quarters (and seven of the last nine). And Microsoft CFO Amy Hood told investors in a follow-up call (as reported by GamesIndustry.biz) to expect hardware sales to decline yet again in the coming fiscal quarter, which ends in September. The 42 percent drop for quarterly hardware revenue -- by far the largest such drop since the introduction of the Xbox Series X/S in 2020 -- follows an 11 percent year-over-year decline in the second calendar quarter of 2023.

Microsoft no longer shares raw console shipment numbers like its competitors, so we don't know how many Xbox consoles are selling on an absolute basis. But industry analyst Daniel Ahmad estimates that Microsoft sold less than 900,000 Xbox units for the quarter ending in March, compared to 4.5 million PS5 units shipped in the same period. Overall, the reported revenue numbers suggest that sales of the Xbox Series X/S line peaked sometime in 2022, during the console's second full year on store shelves. That's extremely rare for a market where sales for successful console hardware usually see a peak in the fourth or fifth year on the market before a slow decline in the run-up to a successor. [...] Aside from hardware sales, Microsoft's gaming content and services revenue was up a healthy-sounding 61 percent year-over-year for the latest reported quarter. But a full 58 percent of that increase was the "net impact from the Activision acquisition," which you may remember cost the company $68.7 billion dollars.

An anonymous reader quotes a report from the Associated Press: Hollywood's video game performers voted to go on strike Thursday, throwing part of the entertainment industry into another work stoppage after talks for a new contract with major game studios broke down over artificial intelligence protections. The strike -- the second for video game voice actors and motion capture performers under the Screen Actors Guild-American Federation of Television and Radio Artists -- will begin at 12:01 a.m. Friday. The move comes after nearly two years of negotiations with gaming giants, including divisions of Activision, Warner Bros. and Walt Disney Co., over a new interactive media agreement.

SAG-AFTRA negotiators say gains have been made over wages and job safety in the video game contract, but that the studios will not make a deal over the regulation of generative AI. Without guardrails, game companies could train AI to replicate an actor's voice, or create a digital replica of their likeness without consent or fair compensation, the union said. Fran Drescher, the union's president, said in a prepared statement that members would not approve a contract that would allow companies to "abuse AI." "Enough is enough. When these companies get serious about offering an agreement our members can live -- and work -- with, we will be here, ready to negotiate," Drescher said. [...]

The last interactive contract, which expired November 2022, did not provide protections around AI but secured a bonus compensation structure for voice actors and performance capture artists after an 11-month strike that began October 2016. That work stoppage marked the first major labor action from SAG-AFTRA following the merger of Hollywood's two largest actors unions in 2012. The video game agreement covers more than 2,500 "off-camera (voiceover) performers, on-camera (motion capture, stunt) performers, stunt coordinators, singers, dancers, puppeteers, and background performers," according to the union. Amid the tense interactive negotiations, SAG-AFTRA created a separate contract in February that covered indie and lower-budget video game projects. The tiered-budget independent interactive media agreement contains some of the protections on AI that video game industry titans have rejected. "Eighteen months of negotiations have shown us that our employers are not interested in fair, reasonable AI protections, but rather flagrant exploitation," said Interactive Media Agreement Negotiating Committee Chair Sarah Elmaleh. The studios have not commented.

Ash Parrish reports via The Verge: More than 500 developers at Blizzard Entertainment who work on World of Warcraft have voted to form a union. The World of Warcraft GameMakers Guild, formed with the assistance of the Communication Workers of America (CWA), is composed of employees across every department, including designers, engineers, artists, producers, and more. Together, they have formed the largest wall-to-wall union -- or a union inclusive of multiple departments and disciplines -- at Microsoft. This news comes less than a week after the formation of the Bethesda Game Studios union, which, at the time of the announcement, was itself the largest wall-to-wall Microsoft union. [...]

The World of Warcraft GameMakers Guild is made up of over 500 members across Blizzard offices in California and Massachusetts. Despite its size -- it is the second largest union at Microsoft overall behind Activision's 600-member QA union -- [Paul Cox, senior quest designer and Blizzard veteran] said that Microsoft's labor neutrality agreement helped get the organization ball rolling. In a statement to The Verge, Microsoft spokesperson Delaney Simmons said, "We continue to support our employees' right to choose how they are represented in the workplace, and we will engage in good faith negotiations with the CWA as we work towards a collective bargaining agreement."

Humble Games, the indie game publisher behind the popular pay-what-you-want "Humble Game Bundle," has laid off its entire staff of 36 people. However, the company says it is not shutting down and Humble Bundle will not be impacted. Instead, the job cuts are part of a restructuring of operations. GameSpot reports: In a statement shared with GameSpot, Humble Games confirmed that Humble Bundle will have "no impact on its operations. Additionally, ongoing and upcoming games from Humble Games will still move ahead and be published by the company. Humble Games is the publisher of many notable indie games, including Stray Gods, Bo: Path of the Teal Lotus, Chinatown Detective Agency, Ikenfell, Unpacking, Slay the Spire, and Midnight Fight Express, just to name a few.

Humble Games is the separate publishing arm of digital storefront Humble Bundle. Both companies are owned by IGN Entertainment, but operate as a separate entities. Earlier this year, IGN Entertainment also bought video game websites Eurogamer, Rock Paper Shotgun, VG247, GamesIndustry.biz, and Dicebreaker from Gamer Network.

merbs writes: Video games -- and the people who make them -- are in trouble. An estimated 10,500 people in the industry were laid off in 2023 alone. This year, layoffs in the nearly $200 billion sector have only gotten worse, with studios axing what is believed to be 11,000 more, and counting. Microsoft, home of the Xbox and parent company to several studios, including Activision Blizzard, shuttered Tango Gameworks and Alpha Dog Games in May. All the while, generative AI systems built by OpenAI and its competitors have been seeping into nearly every industry, dismantling whole careers along the way.

But gaming might be the biggest industry AI stands poised to conquer. Its economic might has long since eclipsed Hollywood's, while its workforce remains mostly nonunion. A recent survey from the organizers of the Game Developers Conference found that 49 percent of the survey's more than 3,000 respondents said their workplace used AI, and four out of five said they had ethical concerns about its use. "It's here. It's definitely here, right now," says Violet, a game developer, technical artist, and a veteran of the industry who has worked on AAA games for over a decade. "I think everyone's seen it get used, and it's a matter of how and to what degree. The genie is out of the bottle, Pandora's box is opened." The story adds: "At Activision, it was the same. 'A lot of 2D artists were laid off,' Noah says. The department was slashed. 'Remaining concept artists,' he claims, 'were then forced to use AI to aid in their work.' Employees, according to Noah, have been made to sign up for AI trainings, and its use is being promoted throughout the org."

Master Chief has fought his last battle at Paramount+. The streamer has canceled its video game adaptation Halo after two seasons. The show originally debuted in 2022. From a report: The series, based on the Xbox franchise and starring Pablo Schreiber as Master Chief John-117, finished its second season in March. "We are extremely proud of this ambitious series and would like to thank our partners at Xbox, 343 Industries and Amblin Television, along with showrunner and executive producer David Wiener, his fellow executive producers, the entire cast led by Pablo Schreiber as Master Chief and the amazing crew for all their outstanding work," Paramount+ said in a statement. "We wish everyone the best going forward."

Sources say the show's producers -- Amblin, Xbox and 343 Industries -- will look to land the series at another outlet for a third season. Paramount+ is said to be supportive of a possible move. "We deeply appreciate the millions of fans who propelled the Halo series to be a global success, and we remain committed to broadening the Halo universe in different ways in the future," reads a statement from 343 Industries. "We are grateful to Amblin and Paramount for their partnership in bringing our expansive sci-fi universe to viewers around the world."

The FTC says the across-the-board price increases that Microsoft recently announced for its Xbox Game Pass subscription service tiers represent "exactly the sort of consumer harm from the merger the FTC has alleged" when it sought to block Microsoft's merger with Activision. From a report: In a letter to the court posted as part of an ongoing appeal by the FTC in the case, the federal regulator alleges Microsoft's moves are a clear example of "product degradation" brought about by "a firm exercising market power post-merger." The letter's primary focus is on the soon-to-be-discontinued $10.99/month Console Game Pass tier. That's being replaced with a $14.99/month Game Pass Standard tier (a 36 percent price increase) that no longer includes "day one" access to all of Microsoft's first-party titles. To maintain that key benefit, "Console" subscribers will have to spend 81 percent more for the $19.99 Game Pass Ultimate tier, which also includes a number of additional benefits over the current $10.99/month option.

The FTC notes that these changes "coincide with adding Call of Duty to Game Pass's most expensive tier." Previously, Microsoft publicly promised that this Game Pass access to Activision's ultra-popular shooter would come "with no price increase for the service based on the acquisition." It's that "based on the acquisition" clause that's likely to give Microsoft some wiggle room in arguing for its planned pricing changes. Inflation is also a sufficient explanation for a large portion of the price increase in nominal terms -- the $14.99 Microsoft charged for a month of Game Pass Ultimate when it launched in 2019 is the equivalent of $18.39 today, according to the BLS CPI calculator.

Valve had its employee and payroll data leaked through a poorly redacted document in an antitrust lawsuit in May, offering a rare glimpse into the company's small but impactful workforce over the years. As first noticed by SteamDB's Pavel Djundik, Valve's significant influence in PC gaming transactions has been maintained by just a few hundred employees. Kyle Orland reports via Ars Technica: It's striking to consider just how small Valve is compared to other major players in the game industry. In 2021, Microsoft estimated Valve's annual revenue at $6.5 billion, roughly on the same scale as EA's $7.5 billion in 2024 revenue. But Steam achieved those numbers with around 350 employees, compared to well over 13,000 people employed by EA. The disparity highlights just how much money Valve brings in with a relatively small workforce. And a lot of that is thanks to the chunk of revenue Valve takes from every sale on Steam. The dominant PC gaming marketplace has seen a massive increase in the number of annual game releases since 2012 or so, thanks to initiatives like Steam Greenlight and Steam Direct.

Yet, surprisingly, the size of the "Steam" department inside Valve has shrunk in recent years, from a peak of 142 employees in 2015 down to just 79 in 2021. From the outside, having just 79 employees keeping track of more than 11,000 Steam releases in 2021 is a pretty incredible ratio. Some readers may also be surprised that Valve's "Games" department has represented a majority of the company's headcount since 2003. That has remained true (though to a lesser extent) even in more recent years, as Valve's output of new games has become much more occasional. It seems likely a large number of those Games department employees are devoted to ultra-popular Valve games like Dota 2 and Counter-Strike 2, which enjoy tens of millions of players and need significant support work.

The leaked data also shows the slow rise of Valve's small Hardware department, which started with just three employees in 2011 as the company began work on its doomed Steam Machines initiative. Transitioning into the Valve Index era in the late 2010s, the hardware department still represented just a few dozen people and a paltry 3 to 4 percent of the company's annual payroll. By the time we hit 2021 and the run-up to the Steam Deck, the Hardware division still makes up just 12 percent of Valve's small total headcount. Looking back, it's impressive that such a small team was able to create a portable gaming device that quickly spawned a whole micro-industry of imitators. We can only hope the Hardware team got a little more employee support in the wake of the Steam Deck's market success.

At the end of June, Apple's App Store rejected the Windows/retro PC emulator "UTM SE". But in a reversal Apple approved the app Saturday, reports the Verge.

"We are happy to announce that UTM SE is available (for free) on iOS and visionOS App Store," the developer posted on X, "and coming soon to AltStore PAL."

From the Verge: After Apple rejected the app in June, the developer said it wasn't going to keep trying because the app was "a subpar experience." Today, UTM thanked the AltStore team for helping it and credited another developer "whose QEMU TCTI implementation was pivotal for this JIT-less build."

As with other emulators on the App Store, you can't do much with UTM SE out of the box. It doesn't come with any operating systems, though the app does link to UTM's site, which has guides for Windows XP through Windows 11 emulation, as well as downloads of pre-built virtual Linux machines. Mac OS 9.2.1 and DOS are listed in one screenshot from the UTM SE App Store page. Mac OS 9.2.1 and DOS are listed in one screenshot from the UTM SE App Store page.

Speaking of Xbox, the Xbox 360 Store and Marketplace are coming to a close later this month. From a report: Microsoft announced this last year and put an official end date of July 29, according to its official FAQ page. In case you didn't notice, the end of July is fast approaching. All of the games, DLC and any gaming tidbits for Microsoft's second generation console won't be available to purchase or download on the Xbox 360 console. Your games and movie purchases are still safe, however, if you've got any throwback titles on your Xbox One or Series X/S console. You can also still watch your purchased movies and shows on Windows 10 and 11 devices.

The video game industry is grappling with a severe financial downturn that's hitting independent developers particularly hard, as exemplified by Necrosoft Games' recent brush with bankruptcy while developing their upcoming title "Demonschool." Brandon Sheffield, the studio's director, managed to secure a temporary contract to keep the company afloat, but he acknowledges the precarious nature of their situation, telling Reuters, "It was the only way to survive, because nobody was funding anything. It's also better than what's happening to a lot of people, where they just have to fold," he told Wired.

This struggle is emblematic of a broader trend in the industry, with experts cited by Wired in a story warning that 2024 could see numerous small studio closures as traditional funding avenues dry up and larger companies tighten their belts. The ripple effects of this contraction extend beyond immediate job losses, with industry veterans like Victoria Tran from Innersloth expressing concern that the challenging climate could deter new talent and stifle the creativity that often emerges from smaller, more experimental game projects.

An anonymous reader shares a report: For years now, Microsoft's Xbox Game Pass has set itself apart by offering subscribers launch-day access to new first-party titles in addition to a large legacy library of older games. That important "day one" perk is now set to go away for all but the highest tier of Game Pass' console subscribers, even as Microsoft asks for more money for Game Pass across the board. Let's start with the price increases for existing Game Pass tiers, which are relatively straightforward:

"Game Pass Ultimate" is going from $16.99 to $19.99 per month.
"Game Pass for PC" is going from $9.99 to $11.99 per month.
"Game Pass Core" (previously known as Xbox Live Gold) is going from $59.99 to $74.99 for annual subscriptions (and remains at $9.99 for monthly subscriptions).
Things get a bit more complicated for the $10.99/month "Xbox Game Pass for Console" tier.

Microsoft announced that it will no longer accept new subscriptions for that tier after today, though current subscribers will be able to keep it (for now) if they auto-renew their subscriptions.

After two rejections, Apple has approved the Epic Games Store for iOS in the European Union. "This paves the way for Epic CEO Tim Sweeney to realize his long-stated goal of launching an alternative game store on Apple's closed platform -- at least in Europe," reports Ars Technica. From the report: Apple announced plans to allow third-party app stores on iOS in the region earlier this year, complying with the letter of the law (though some say not the spirit) as required by the Digital Markets Act (DMA), which was enacted in hopes of making platforms more open and competitive. Apple's new policies allow for alternative app marketplaces but with some big caveats regarding the deal that app developers agree to.

The change followed years of contentious PR campaigns and court battles around the world between Epic and Apple, with Sweeney proclaiming that Apple's app approval processes are anti-competitive and that its 30 percent cut of app revenues is unfair. Even after the shift, Apple is said to have rejected the Epic Games Store app twice. The rejections were over specific rules about the copy and shape of buttons within the app, though not about its primary function. [...] Apple went ahead and approved the app despite the disagreement over the copy and button designs. However, AppleInsider reported that Apple will still require Epic to change the copy and buttons later.

Mojang Studios, the creator of the globally popular video game Minecraft, is diversifying its revenue streams amid slowing growth in the gaming industry. Chief Executive Asa Bredin revealed in an interview that the company is exploring new partnerships in merchandising, education, and content streaming. The company is also venturing into film and television, with a Warner Bros. movie adaptation set to premiere in April and a Netflix series in development. From a report: Mojang's push follows repeated forays by Nintendo and Sony Group to broaden the appeal of their gaming properties at a time that spending in the industry has hit a lull. Nintendo is developing a live-action film based on the Legend of Zelda franchise, following the blockbuster success of The Super Mario Bros. Movie, while Sony has turned The Last of Us into an HBO series and created games based on the Spider-Man movies.

Nintendo has announced the end of repair services for its Wii U console, following the earlier decision to shut down all Wii U servers. Nintendo cited the expiration of the parts retention period as the reason for discontinuing repairs. The move marks the final chapter for the Wii U, which launched in 2012 but struggled to gain traction, selling only 13.56 million units compared to its successor, the Switch, which has sold over 140 million units.

An Italian video game, 22 years in the making, has finally hit the market, setting a record for the longest development time in gaming history. "Kien," an action platformer for Nintendo's Game Boy Advance, began development in 2002 by a group of five inexperienced enthusiasts, The Guardian reports. Only one, Fabio Belsanti, saw the project through to completion. The game, inspired by 15th-century Tuscan manuscripts and early Japanese graphics, offers a challenging, nonlinear fantasy experience. It's now available on a translucent gray cartridge, complete with a printed manual -- a rarity in modern gaming. Belsanti's company, AgeOfGames, survived the delay by creating educational games. The recent boom in retro gaming finally made Kien's release feasible, he said.

Epilogue, the company behind the GB Operator emulator, which lets users play Game Boy cartridges on a PC, announced that it's working on an update to turn the Game Boy Camera into a lo-fi webcam. Time Extension reports: The Playback app currently allows you to download photos from the Game Boy Camera accessory, but Epilogue has just demonstrated the ability to use the peripheral as a webcam.

"We now have a live feed from the Game Boy Camera, but still need to fine-tune some things and allow for configuration options," says the company. "We wanted to share this update because it was exciting to see it finally work, and [we] can't wait to see everyone having fun with it. It's the worst and the best webcam you'll ever have."

Mario and Luigi aren't jumping on the AI train. From a report: In a recent Q&A with investors, Nintendo President Shuntaro Furukawa addressed the issue. Though he said generative AI can be creative, Furukawa told his audience that the company isn't planning to use the technology in its games. "In the game industry, AI-like technology has long been used to control enemy character movements, so game development and AI technology have always been closely related," Furukawa said, according to TweakTown. "Generative AI, which has been a hot topic in recent years, can be more creative, but we also recognize that it has issues with intellectual property rights. "We have decades of know-how in creating optimal gaming experiences for our customers, and while we remain flexible in responding to technological developments, we hope to continue to deliver value that is unique to us and cannot be achieved through technology alone."