The video game industry is experiencing something that most consumer-facing businesses would consider remarkable: organized online campaigns from players are actually forcing studios to cancel projects or publicly walk back any association with AI-generated content.

Running With Scissors, the publisher behind the Postal shooter franchise, recently scrapped a title after players accused its trailer of containing AI-generated graphics. Goonswarm Games, the developer behind the canceled project, subsequently shut down entirely and cited six years of lost work alongside what it described as a flood of threats and accusations.

Sandfall Interactive's "Obscur: Expedition 33" had its Indie Game Awards Game of the Year honor rescinded after the developer said it had considered AI-generated images, even though the final release contained none. Larian Studios, the developer behind Baldur's Gate 3, faced immediate backlash after CEO Swen Vincke mentioned in an interview that the company was using generative AI to "explore ideas" for an upcoming release. Vincke later clarified on X that artists use AI only for reference images the way they would use "art books or Google," and Larian executives eventually stated on Reddit that AI would play no role in final artwork.

Three co-founders of the game studio That's No Moon "are suing another co-founder for allegedly hijacking the company's website domain name," reports the gaming news site Aftermath, "taking the website offline and disabling employee access to email accounts, according to a new lawsuit." Tina Kowalewski, Taylor Kurosaki, and Nick Kononelos filed a complaint against co-founder and former CEO Michael Mumbauer on Tuesday in a California court. [Game studio] That's No Moon, which was founded in 2020 by veterans of Infinity Ward, Naughty Dog, and other AAA studios, said in its complaint that Mumbauer is looking to "cripple" the studio after being fired in 2022...

Mumbauer, according to the complaint, purchased the domain name, and several others, when the studio was founded; it said both parties agreed these would be controlled by the studio. Mumbauer allegedly still has access to the domains, and That's No Moon said he took control over the website on Jan. 6, disabled the studio's access, and turned off employees' ability to email external addresses. The team was locked out for two days as a four-person IT team worked to get the services back online. On the public-facing side, the website briefly redirected to the Travel Switzerland page, according to the complaint. That's No Moon's lawyers said the co-founders sent Mumbauer a letter on Jan. 7 demanding he "relinquish his unauthorized access." That's when, according to the compliant, the website started redirecting to a GoDaddy Auction site, where the domain was priced at $6,666,666; That's No Moon remarked in the complaint: "A number that [Mumbauer] may well have selected for its Satanic connotation."

As of Wednesday, Aftermath was able to access a public-facing That's No Moon website using both the original domain and the new one... The charges listed as part of this lawsuit are trademark infringement, cybersquatting, computer fraud, conversion, trespass to chattels, and breach of contract. That's No Moon also asked a judge for a temporary restraining order to prevent Mumbauer from continued access to the domains. Mumbauer has not responded to Aftermath's request for comment. Mumbauer said, in an email to That's No Moon attorney Amit Rana published as part of the lawsuit, that he intends to file "a wrongful termination countersuit and will be seeking extensive damages...."

That's No Moon hasn't yet announced its first game, but has said the game is led by creative director Taylor Kurosaki and game director Jacob Minkoff. South Korean publisher Smilegate invested $100 million into the company, That's No Moon announced in 2021.

Ubisoft is canceling game projects, shutting down studios and cutting its guidance as the Assassin's Creed maker restructures its business into five units. From a report: The French gaming firm expects earnings before interest and tax to be a loss of $1.2 billion the fiscal year 2025-2026 as a result of the restructuring, driven by a one-off writedown of about $761 million, the company said in a statement on Wednesday.

Ubisoft also expects net bookings of around $1.76 billion for the year, with a $386 million gross margin reduction compared to previous guidance, it said. Six games, including a remake of Prince of Persia The Sands of Time, have been discontinued and seven other unidentified games are delayed, the company said. The measures are part of a broader plan to streamline operations, including closing studios in Stockholm and Halifax, Canada. Ubisoft said it will have cut at least $117 million in fixed costs compared to the latest financial year by March, a year ahead of target, and has set a goal to slash an additional $234 million over the next two years.

Microsoft appears to be preparing an ad-supported tier for Xbox Cloud Gaming that would let players stream games they've purchased digitally without needing a Game Pass subscription, according to a Windows Central report citing sources familiar with the plans. Users last week began noticing a new message pop up while launching cloud games that referenced "1 hour of ad supported play time per session," though no such tier currently exists.

The ad-supported option, expected to launch sometime this year, would specifically target the hundreds of games available for digital purchase through Xbox Cloud Gaming -- titles that currently require at least one tier of Game Pass to stream despite being owned outright by the player.

Valve has substantially overhauled its guidelines for how game developers must disclose the use of generative AI on Steam, making explicit that tools like code assistants and other development aids do not fall under the disclosure requirement. The updated rules clarify that Valve's focus is not on "efficiency gains through the use of AI-powered dev tools."

Developers must still disclose two specific categories: AI used to generate in-game content, store page assets, or marketing materials, and AI that creates content like images, audio, or text during gameplay itself. Steam has required AI disclosures since 2024, and an analysis from July 2025 found nearly 8,000 titles released in the first half of that year had disclosed generative AI use, compared to roughly 1,000 for all of 2024. The disclosures remain voluntary, so actual usage is likely higher.

Games Workshop, the owner and operator of a number of hugely popular tabletop war games, including Warhammer 40,000 and Age of Sigmar, has banned the use of generative AI in its content and design processes. IGN reports: Delivering the UK company's impressive financial results, CEO Kevin Rountree addressed the issue of AI and how Games Workshop is handling it. He said GW staff are barred from using it to actually produce anything, but admitted a "few" senior managers are experimenting with it. Rountree said AI was "a very broad topic and to be honest I'm not an expert on it," then went on to lay down the company line:

"We do have a few senior managers that are [experts on AI]: none are that excited about it yet. We have agreed an internal policy to guide us all, which is currently very cautious e.g. we do not allow AI generated content or AI to be used in our design processes or its unauthorized use outside of GW including in any of our competitions. We also have to monitor and protect ourselves from a data compliance, security and governance perspective, the AI or machine learning engines seem to be automatically included on our phones or laptops whether we like it or not.

We are allowing those few senior managers to continue to be inquisitive about the technology. We have also agreed we will be maintaining a strong commitment to protect our intellectual property and respect our human creators. In the period reported, we continued to invest in our Warhammer Studio -- hiring more creatives in multiple disciplines from concepting and art to writing and sculpting. Talented and passionate individuals that make Warhammer the rich, evocative IP that our hobbyists and we all love."

Meta is shutting down three acquired VR studios as part of Reality Labs layoffs and a strategic pivot away from VR content toward AI-powered smart glasses. UploadVR reports: Meta shut down Twisted Pixel Games (Deadpool VR), Sanzaru Games (Asgard's Wrath), and Armature Studio (Resident Evil 4 VR). [...] Twisted Pixel Games was founded in 2006 and mostly made Xbox games published by Microsoft for the first decade of its existence. In fact, Microsoft owned the studio from 2011 until 2015, when it became an independent company again. On contract from Facebook, between 2017 and 2019 Twisted Pixel released four VR games: Wilson's Hearth (Rift); B-Team (Go/Quest); Defector (Rift); and Path of the Warrior (Rift/Quest). In 2022, Twisted Pixel Games was acquired by Meta. And just two months ago, it released what it had been working on since then: Deadpool VR, the latest Quest-exclusive VR game. [...]

Sanzaru Games was also founded in 2006, and made a combination of its own games and contract titles for companies such as Sony, porting the original God of War series to PS Vita. Sanzaru Games was also contracted by Facebook to build VR games for the Oculus Rift and its Touch controllers, between 2016 and 2019: Ripcoil (2016); VR Sports Challenge (2016); Marvel Powers United VR (2018); and Asgard's Wrath (2019). In 2020, Sanzaru Games was acquired by Facebook, and in 2023 released Asgard's Wrath 2, taking the core essence of Asgard's Wrath to Quest 2 and Quest 3 standalone, with a semi-open world and a campaign more than 60 hours long. Exactly one year ago, Sanzaru released the last major content update for Asgard's Wrath 2, stating that it was now working on the "next big thing" with no detail released on what that would be before the studio closed.

Founded in 2008, Armature Studio was mainly a porting studio, bringing PC titles to consoles and console titles to PS Vita. Like Twisted Pixel and Sanzaru, Armature too was contracted by Facebook to build early consumer VR games: Fail Factory (2017); Sports Scramble (2019); and Resident Evil 4 VR (2021). Armature was acquired by Meta in 2022, and many VR gamers had been eagerly anticipating what it had been working on since. Whatever it was, Armature too is now shut down.

A year ago the Steam Survey showed a 2.29% marketshare for Linux. Last May it reached 2.69%, its highest level since 2018. November saw another all-time high of 3.2%.

But December brought a surprise, reports Phoronix: Back on the 1st Valve published the Steam Survey results for December 2025 and they put the Linux gaming marketshare at 3.19%, a 0.01% dip from November. But now the December results have been revised... [and] put the Linux marketshare at 3.58%, a 0.38% increase over November. Valve didn't publish any explanation for the revision but occasionally they do put out monthly revised data. This is easily an all-time high... both in percentage terms and surely in absolute terms too.

Ubisoft announced Wednesday it will close its studio in Halifax, Nova Scotia — two weeks after 74% of its staff voted to unionize.

This means laying off the 71 people at the studio, reports the gaming news site Aftermath: [Communications Workers of America's Canadian affiliate, CWA Canada] said in a statement to Aftermath the union will "pursue every legal recourse to ensure that the rights of these workers are respected and not infringed in any way." The union said in a news release that it's illegal in Canada for companies to close businesses because of unionization. That's not necessarily what happened here, according to the news release, but the union is "demanding information from Ubisoft about the reason for the sudden decision to close."

"We will be looking for Ubisoft to show us that this had nothing to do with the employees joining a union," former Ubisoft Halifax programmer and bargaining committee member Jon Huffman said in a statement. "The workers, their families, the people of Nova Scotia, and all of us who love video games made in Canada, deserve nothing less...."

Before joining Ubisoft, the studio was best known for its work on the Rocksmith franchise; under Ubisoft, it focused squarely on mobile games.

Ubisoft Halifax was quickly removed from the Ubisoft website on Wednesday...

Valve has added the NTSYNC kernel driver to the SteamOS 3.7.20 beta, laying the groundwork for improved Windows game synchronization performance via Wine and Proton. Phoronix reports: For gearing up for that future Proton NTSYNC support, SteamOS 3.7.20 enables the NTSYNC kernel driver and loads the module by default. Most Linux distributions are at least already building the NTSYNC kernel module though there's been different efforts on how to handle ensuring it's loaded when needed. The presence of the NTSYC kernel driver is the main highlight of the SteamOS 3.7.20 beta now available for testing.

An anonymous reader quotes a report from Ars Technica: SteamOS's slow march across the Windows-dominated PC gaming landscape is continuing to creep along. At CES this week, Lenovo announced it will launch a version of last year's high-priced, high-powered Legion Go 2 handheld with Valve's gaming-focused, Linux-based OS pre-installed starting in June. And there are some intriguing signs from Valve that SteamOS could come to non-AMD devices in the not-too-distant future as well. [...] Valve has also been working behind the scenes to expand SteamOS's footprint beyond its own hardware. After rolling out the SteamOS Compatible software label last May, SteamOS version 3.7 offered support for manual installation on AMD-powered handhelds like the ROG Ally and the original Legion Go.

Even as SteamOS slowly spreads across the AMD-powered hardware landscape, the OS continues to be limited by a lack of compatibility with the wide world of Arm devices. That could change in the near future, though, as Valve's upcoming Steam Frame VR headset will sport a new version of SteamOS designed specifically for the headset's Arm-based hardware. [...] It's an especially exciting prospect when you consider the wide range of Arm-based Android gaming handhelds that currently exist across the price and performance spectrum. While emulators like Fex can technically let players access Steam games on those kinds of handhelds, official Arm support for SteamOS could lead to a veritable Cambrian explosion of hardware options with native SteamOS support.

[...] That's great news for fans of PC-based gaming handhelds, just as the announcement of Valve's Steam Machine will provide a convenient option for SteamOS access on the living room TV. For desktop PC gamers, though, rigs sporting Nvidia GPUs might remain the final frontier for SteamOS in the foreseeable future. "With Nvidia, the integration of open-source drivers is still quite nascent," [Valve's Pierre-Louis Griffais] told Frandroid about a year ago. "There's still a lot of work to be done on that front So it's a bit complicated to say that we're going to release this version when most people wouldn't have a good experience."

An anonymous reader quotes a report from Wired: At CES in Las Vegas today, Lego has unveiled its new Smart Play platform, aimed at taking its distinctly analog plastic blocks and figures into a new world of tech-powered interactive play -- but crucially one without any reliance on screens. Smart Play revolves around Lego's patented sensor- and tech-packed brick. It's the same size as a standard 2 x 4 Lego brick, but it is capable of connecting to compatible Smart Minifigures and Smart Tags and interacting with them in real time. By pairing these components, kids big and small can create context-appropriate sounds and light effects as they play with the Danish company's toys.

[...] Lego is claiming this Smart Play platform developed in house by the company's Creative Play Lab team in collaboration with Capgemini's Cambridge Consultants "features more than 20 patented world-firsts within its technology." The heart of the system is the Smart Brick's custom-made chip, measuring smaller than a standard Lego stud. Other elements crammed into the eight-stud brick are an LED light array, accelerometers, light sensors, and sound sensor, and even a miniature speaker. The internal battery will supposedly work even after years of inactivity, and to avoid any need for cable access to the Smart Brick once it's built into a beloved creation, Lego has also added wireless charging. Indeed, Lego has made a charging pad that will power up several Smart Bricks simultaneously.

That all-important brain chip is a 4.1-millimeter custom mixed-signal ASIC chip running a bespoke Play Engine, which interprets motion, orientation, and magnetic fields. A copper coil assembly enables the brick's tag recognition, while a proprietary "Brick-to-Brick position system" uses these coils to sense distance, direction, and orientation between multiple Smart Bricks. Moreover, Lego claims this use of multiple Smart Bricks creates a "self-organizing network" that requires no setup, no app, no central hub, nor external controllers -- and so no screens. A Bluetooth-based "BrickNet" protocol shares the data between the Smart Bricks.

Sounds are handled by a tiny analog synthesizer putting out real-time audio (thus minimizing memory load) via the brick's miniature speaker, which uses the brick's internal air spaces to amplify sound. As a result, the audio effects are apparently immediate and can be used to enhance play with real-time sound. Lego insists there are no prerecorded clips of lightsabers or other pieces of audio being used as a cheat. Just like the Smart Minifigs, the 2 x 2 studless tile tags trigger sounds, lights, or behaviors tied to where they are placed or how they are played with. They communicate with other components through near-field magnetic connections. Each tile has a unique digital ID, which is read by the brain brick, while the minifigures -- outwardly identical to standard minifigs -- carry their unique digital ID on an internal chip.

One-Netbook has unveiled the OneXSugar Wallet, the first gaming handheld with a folding OLED display. The Verge reports: The OneXSugar Wallet was announced on China's Weibo yesterday, but with few details about its features and capabilities. That folding OLED screen has a resolution of 2480 x 1860 pixels, and the handheld will be powered by an unspecified "Qualcomm gaming platform flagship processor," but its performance and emulation capabilities are unknown.

Based on photos and a video released by One-Netbook, the OneXSugar Wallet will feature a standard set of controls including asymmetrical thumbsticks, four action buttons, and a D-pad situated on either side of the lower half of its display. There are also shoulder buttons and triggers on the back of the handheld, and a pair of front-facing speakers flanking the top half of the screen. The biggest question is how much will the handheld cost...

Michal Kicinski, who co-founded both CD Projekt and the DRM-free digital games store GOG back in 2008, has acquired 100% ownership of GOG from CD Projekt, bringing the platform full circle to one of its original creators.

GOG was already operating as part of CD Projekt through its Sp.z.o.o. subsidiary, but Kicinski now takes complete control of the company. The platform will continue operating independently and maintain its commitment to DRM-free gaming. "The mission stays the same: Make Games Live Forever," GOG said in its announcement.

CD Projekt's joint CEO Michal Nowakowski said the parent company's focus on its development roadmap and franchise expansion made this the right time for the move. GOG has signed a distribution agreement ensuring all upcoming CD Projekt Red titles will release on the platform. Kicinski, describing himself as a "mature gamer" who plays classics, said he's personally involved in developing several retro-spirited games slated for GOG in 2026.

About 60 workers in Halifax, Nova Scotia have formed Ubisoft's first union in North America, reports the CBC (though its 17,000 employees include some unionized workforces in other parts of the world): T.J. Gillis, a senior server developer at Ubisoft Halifax, says he became increasingly concerned about the growth of artificial intelligence in the industry and after the closure of a Microsoft gaming studio in Halifax, Alpha Dog, in 2024. "We're seeing a ton of studios, especially larger studios, just letting people go with no unions or support, people were just being left to fend for themselves. Often times having to leave industry," said Gillis.

Gillis said he got into contact with CWA Canada to begin efforts to build a union with other colleagues... The union was formed six months after filing union certification and after 74 per cent of staff at Ubisoft Halifax voted to join CWA Canada... A spokesperson for Ubisoft said in a statement to CBC News that they "acknowledge the decision issued by the Nova Scotia Labour Board and reaffirm our commitment to maintaining full cooperation with the Board and union representatives."

Carmel Smyth is the president of CWA Canada and says she is already hearing from other employees at tech companies who want to follow Ubisoft Halifax's lead.

Engadget reports on "a widespread breach" of Ubisoft's game Rainbow Six Siege "that left various players with billions of in-game credits, ultra-rare skins of weapons, and banned accounts."

Ubisoft took the game's servers offline early Saturday morning, and as of Sunday night its status page still shows "unplanned outage" on all servers across PC, PlayStation and Xbox: Ubisoft later clarified Saturday afternoon on X that nobody would be banned if they spent their ill-gotten credits, but that a rollback of all transactions starting from Saturday, 6AM ET would soon be underway.
Founded 39 years ago, France-based Ubisoft produces top videogame franchises like Assassin's Creed, with billions in revenue and over 17,097 employees worldwide.

Asus has been showcasing its new 5K 27-inch ROG Strix 27 Pro gaming monitor running at 5,120 x 2,880 resolution and up to 180Hz, but even Nvidia's flagship RTX 5090 struggles to deliver smooth frame rates at this demanding pixel count. In testing conducted by Asus, the RTX 5090D -- a Chinese-exclusive variant with weaker AI performance -- achieved just 51 frames per second in a Cyberpunk 2077 benchmark at ultra ray traced settings. The test system ran an AMD Ryzen 9950X3D processor, had DLSS set to balanced, and kept frame generation disabled. The same configuration running at 4K managed 77 fps, around 50% higher.

The underlying math is simple: 5K resolution requires rendering 78% more pixels than 4K. That 218 PPI pixel density delivers impressive sharpness up close, but Asus chose an IPS panel over OLED technology to reach it, trading away deeper black levels and faster response times. Asus appears to be positioning the monitor as a dual-mode display -- 5K for productivity and video, 1440p at up to 330Hz for gaming. Early Chinese listings have it priced at the equivalent of $800, roughly what you'd pay for a larger 4K OLED panel.

Vince Zampella, the co-creator of Call of Duty and co-founder of Infinity Ward and Respawn Entertainment, died at 55 in a single-car accident in Los Angeles. According to NBC Los Angeles, "The single-car crash was reported at about 12:45 p.m. on the scenic road north of Los Angeles in the San Gabriel Mountains. The southbound car veered off the road, hit a concrete barrier and a passenger was ejected, the California Highway Patrol said. The driver was trapped in the ensuing car fire, the CHP said. The driver died at the scene and the passenger died at a hospital, authorities told NBC4 Investigates." IGN reports: Zampella was an incredibly talented game developer who changed the industry with Call of Duty, a franchise he co-created with Jason West in 2003 at Infinity Ward, the studio he co-founded with West, after previously serving as the lead designer for EA's Medal of Honor: Allied Assault. Zampella was at the center of a high-profile lawsuit against Activision that alleged that the publisher owed Zampella and the Infinity Ward team millions of dollars in unpaid Call of Duty royalties. The bitter professional divorce led to Zampella and West taking a substantial number of the Infinity Ward team with them to EA, where they co-founded Respawn Entertainment, a studio that has produced nothing but critically acclaimed hits: Titanfall, Titanfall 2, Apex Legends, Star Wars Jedi: Fallen Order, and Star Wars Jedi: Survivor. Respawn's success under Zampella led to him getting promoted twice, eventually overseeing the Battlefield franchise within his role as Group General Manager at EA.

The video games industry in 2025 finds itself caught between the familiar forces of consolidation and job losses that have plagued creative industries, and a newer development: governments and the ultra-wealthy have begun treating games as tools of political influence. Saudi Arabia's Public Investment Fund closed a $55 billion deal for EA this year and acquired Niantic, the makers of Pokemon Go, in March.

Microsoft's 2023 acquisition of Activision already signaled the direction of travel. The workforce has borne the costs of this consolidation. More than 5,000 jobs have been lost in the industry this year, and several studios have shuttered, including Monolith Productions. The instability has pushed unions into greater prominence: United Videogame Workers formed in the US and Canada in March as part of the Communications Workers of America, and the firing of 30 staff from Rockstar Games in the UK brought the IWGB Game Workers Union into the spotlight.

Meanwhile, the Trump administration has posted AI-generated images of the president as Halo's Master Chief and used Pokemon and Halo memes to recruit for ICE.

A "slew of layoffs, price hikes and studio closures" for Microsoft's Xbox "have led many to declare — not for the first time — that the Xbox is dead," reports CNBC.

Or is it just changing its business model? The company's overall gaming revenue decreased 2% year-over-year, with a 29% dip in Xbox hardware sales, according to Microsoft's first-quarter earnings for fiscal 2026. The broader console industry has been in a major slump, with hardware spending down 27% year-over-year in November, which is typically a busy shopping month, according to a recent report from research firm Circana. It was the worst November in two decades, IGN reported, citing Circana data. Combined Switch and Switch 2 unit sales were down more than 10% during the month and PS5 sales were down more than 40%, IGN said. But the Xbox Series hardware took the biggest beating, with a dramatic 70% drop in sales...Microsoft's Xbox Series S and Series X, at 1.7 million units, couldn't outsell the original Nintendo Switch, which launched in 2017 and has sold 3.4 million units so far this year, data from game sales tracking site VGChartz estimated...

Microsoft CEO Satya Nadella said in a recent interview with the TBPN podcast that the company's gaming business model will look to be "everywhere in every platform," from consoles to TV to mobile. His comments also hinted that the next Xbox may function more like a PC. "It's kind of funny people think about the console and PC as two different things," Nadella said. "We built a console because we wanted to build a better PC, which could then perform for gaming. So I kind of want to revisit some of that conventional wisdom...." A source familiar with Xbox strategy told CNBC that the company is looking at creating an open system that enables players to jump between console, PC and cloud gaming — and any form of entertainment beyond gaming. [Wedbush analyst Michael Pachter told CNBC] that while Microsoft is not completely abandoning hardware, the company is splitting its audience into existing buyers interested in specialized consoles and everyone else.

Xbox Game Pass subscription service, which gives subscribers access to games from a variety of publishers, is a clear example of this strategy... The growth in cloud gaming has been blistering. Xbox reported a record 34 million Game Pass subscribers in 2024 and a total Game Pass revenue of almost $5 billion over the last fiscal year. Xbox said in a November blog post that the number of cloud gaming hours from Game Pass subscribers was up 45% compared to the same time last year. The Microsoft subsidiary also said console players are "spending 45% more time cloud streaming on console and 24% more on other devices..."

Despite gaming's scaling limitations, Microsoft seems committed to doing what it has done with the rest of its products — moving it to the cloud... [Xbox President Sarah] Bond recently said in an interview with Mashable that the idea of exclusive games is "antiquated" as the company has leaned into cross-platform gaming... Xbox is betting that cloud and cross-platform gaming are the future. For a decade, claims have been made about the death of the Xbox, and what comes next could fully spell the end, or bring a metamorphosis.