WaperMicrosoft’s voluntary exit offer includes Xbox staff, while Epic plans to permit AI training on Unreal Engine and MetaHuman outputs.
Game industry8 items
Pokémon Unite has a shutdown date, and Capcom and Nazara reported strong revenue growth.
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Microsoft offers voluntary exits to up to 60,000 employees, including Xbox staff
Microsoft is offering voluntary buyouts to eligible employees across divisions including Xbox. The programme covers up to 60,000 employees as the company controls costs while expanding investment in AI.
Why it matters: Xbox is included in a broad workforce reduction programme, adding uncertainty over staffing across Microsoft’s gaming operations.
Epic plans EULA change allowing AI training on Unreal Engine and MetaHuman outputs
Epic CEO Tim Sweeney said the company will update its EULA to allow AI training on outputs from Unreal Engine and MetaHuman. Developers will still be able to restrict such use for individual games.
Why it matters: Studios using Epic’s tools will need to review how the revised terms affect their AI-use policies and output restrictions.
Pokémon Unite will shut down on March 23, 2027
The Pokémon Company will end Pokémon Unite service on mobile and Nintendo Switch on March 23, 2027. Microtransactions and monthly Unite Club membership payments have already ended; Tencent’s TiMi Studio Group developed the game.
Why it matters: The closure ends a live-service title linking Tencent and Pokémon, with monetization stopping ahead of the shutdown.
Capcom’s first-half sales rise 49%, operating profit grows 54.5%
Capcom’s sales rose 49% to ¥120.887 billion and operating profit grew 54.5% to ¥60.769 billion in the six months ended September 30, 2026, driven by new releases and existing games. Despite reaching 73% of its annual operating profit target, Capcom maintained full-year forecasts of ¥210 billion in sales and ¥83.1 billion in operating profit.
Why it matters: The results highlight the strength of Capcom’s catalog sales, while its unchanged forecast is worth tracking after such strong first-half progress.
Nazara posts record $84.3 million quarterly revenue as gaming grows 122%
Nazara Technologies reported record Q2 FY27 revenue of $84.3 million, up 53% year over year. Its core gaming division generated $68.9 million, up 122%, with a 21.5% EBITDA margin.
Why it matters: Gaming now supplies 82% of revenue and effectively all profit before corporate costs, making it the company’s central earnings driver.
Warhorse Studios confirms cyberattack affecting company systems and data
Kingdom Come: Deliverance developer Warhorse Studios confirmed a serious cyberattack involving unauthorized access to company systems and data. The studio is still assessing the full extent of the impact.
Why it matters: The incident creates operational and data-security risks, although the studio has not yet established its full consequences.
Rockstar workers to vote on union recognition around GTA VI launch
Rockstar employees will have two weeks to decide whether to recognize the IWGB Rockstar Game Workers Union. The vote is set to coincide with Grand Theft Auto VI’s launch.
Why it matters: The vote could change employee representation during a major release period for the studio.
Follow-ups1
Capcom delists Street Fighter 5 and disables servers over PHP security issue
Capcom has temporarily delisted Street Fighter 5 and switched off its servers while addressing a PHP security issue. The game remains playable offline.
Why it matters: The security disruption now affects another major title, interrupting both online access and store availability.