Game industry

Studio cuts spread as AI reshapes game investment and production

Ubisoft, Funcom, Netflix and Fishlabs moved to reduce or refocus their workforces, while Liquid Swords reportedly entered bankruptcy. At the same time, AI dominated private gaming investment and featured in new production, storefront and discovery initiatives.

Key developments

Ubisoft cuts reach five studios

Ubisoft proposed closing Trials developer RedLynx and downsizing Ubisoft Singapore, affecting more than 120 jobs, including 70 in Singapore. It also proposed approximately 100 voluntary departures across Düsseldorf, Berlin and Mainz.

The proposals would reduce production capacity across both established franchise studios and support hubs.

Oct 14–15 · GamesIndustry.biz Latest Articles Feed · GamesIndustry.biz Latest Articles Feed · Game Developer

Deal totals mask falling spending

Aream & Co counted 54 Q3 transactions worth $57.8 billion, including EA’s $55 billion leveraged buyout, while mobile in-app purchases fell 7% year-over-year to $19.6 billion and console games revenue fell 12%. Separately, Drake Star counted $2.4 billion across 45 acquisitions and more than $1.6 billion across 106 private funding rounds, with AI and tools attracting over 80% of private funding.

Acquisition spending and AI investment are not translating into stronger consumer spending on mobile and console games.

Oct 12–14 · GamesIndustry.biz Latest Articles Feed · Latest Updates | PocketGamer.biz · Latest Updates | PocketGamer.biz

Funcom narrows its business

Funcom began restructuring to focus solely on live operations for Conan Exiles and Dune: Awakening, affecting staff. CEO Rui Casais will leave at year-end after 11 years leading the Tencent-owned developer.

Funcom’s remaining work will concentrate on maintaining two existing games rather than a broader development portfolio.

Oct 14 · GamesIndustry.biz Latest Articles Feed

More layoffs and a reported bankruptcy

Netflix plans around 1,000 layoffs, or 6% of its workforce, with its games division affected, while Fishlabs announced cuts across development and support. Samson developer Liquid Swords reportedly was declared bankrupt after months of unpaid developer wages.

The losses affect game production jobs and leave Liquid Swords employees facing uncertainty over unpaid wages.

Oct 15–18 · Latest Updates | PocketGamer.biz · GamesIndustry.biz Latest Articles Feed · VGC

Epic pushes AI into production

Epic reportedly delayed its Disney shooter featuring Marvel and Star Wars characters and instructed developers to adopt an AI-first production model. Separately, it released a beta launcher built using AI-assisted coding and claimed cold startup to the store page was 46% faster than Steam.

Epic’s storefront beta provides a public test of its AI-assisted development approach as the reported Disney project changes course.

Oct 12–15 · GamesIndustry.biz Latest Articles Feed · VGC · GamesIndustry.biz Latest Articles Feed

Purchased games face access failures

Legacy Games is closing and will stop downloads and installations of purchased games after February 2027. Switch 2 Game-Key Cards for Rudolph the Red-Nosed Reindeer are reportedly unplayable because the required download is missing.

Both cases show that owning a purchase or physical card does not guarantee access when the required download is unavailable.

Oct 13–18 · VGC · TwistedVoxel

Two live services set shutdown dates

Supercell will close Squad Busters on December 14, following its May 2024 global launch, and remove it from app stores on December 1. Tencent will also close The Division 2’s Chinese service on December 14; recharges and new registrations stopped October 12, with compensation offered for remaining currency.

Players of both services have a fixed end date for access to their games.

Oct 12–14 · 机核 · Latest Updates | PocketGamer.biz

GTA 6 PC release reportedly closer

Rockstar reportedly plans to release GTA 6 on PC in Q1 2027, according to four anonymous sources. The reported schedule implies a console exclusivity window of roughly one and a half to four and a half months.

PC players could receive GTA 6 after a much shorter console-only period than GTA 5 had.

Oct 13 · Eurogamer · 机核 · VGC

Shogun withdrawn, RuneScape project cancelled

Sega pulled Total War: Shogun 2 – Complete Edition from stores over bugs and AI art after the original edition had already been delisted. Jagex cancelled RuneScape Reignited less than two weeks after announcing it, citing extensive player feedback.

New buyers lose access to Shogun 2’s withdrawn editions, while RuneScape players will no longer receive the announced new version.

Oct 15–16 · VGC · Eurogamer

New releases set sales benchmarks

Control Resonant sold 1 million copies in roughly three weeks, becoming the fastest-selling game in Remedy’s 31-year history. WARDOGS passed 3 million sales and 425,000 peak concurrent Steam players since its September 10 early-access launch, while Season 2 added severe weather, weapons, vehicles and structures.

Remedy gains a new franchise sales benchmark, while WARDOGS enters its next early-access phase with an established paying audience.

Oct 16 · Eurogamer · 机核

Also this week

Funding and services

  • Flow Games confirmed $49 million raised to date from Tencent, Makers Fund, Arcadia Gaming Partners and Ludus Ventures, following an earlier report of a $46 million funding package. Latest Updates | PocketGamer.biz · Latest Updates | PocketGamer.biz

  • Spill Games raised $10.5 million in Series A funding to expand its portfolio, user acquisition, team and technological capabilities, including AI. Latest Updates | PocketGamer.biz

  • Miniclip launched its AI-powered AdSurge platform as a standalone company combining user acquisition and advertising monetisation for third-party mobile publishers. Latest Updates | PocketGamer.biz

  • War Robots surpassed $50 million in lifetime Steam revenue since its April 2018 launch there, with players across platforms now sharing one matchmaking pool. Latest Updates | PocketGamer.biz

Platforms and discovery

  • Steam reached its second concurrent-user record of the year. Eurogamer

  • Xbox formed Labs, a small group of game makers, engineers and scientists that will rapidly test tools, products and features, with CEO Asha Sharma linking it to AI-powered mods and ports. GamesIndustry.biz Latest Articles Feed · VGC

  • Google Play announced AI-powered Game Finder recommendations, timed competitive Sprints and clip-sharing through its Sidekick overlay. Latest Updates | PocketGamer.biz · GamesIndustry.biz Latest Articles Feed

  • Roblox brought Audioscape’s team in-house to incorporate AI audio technology into creator tools and develop a broader audio and music roadmap. Latest Updates | PocketGamer.biz

  • Epic confirmed work to bring Fortnite and the Epic Games Store to Linux. Eurogamer

  • Steam introduced Achievement Sets so developers can group achievements and add seasonal achievements. VGC

Development tools

Hardware and ownership

  • Nintendo’s Latin America leadership said the company currently has no plans to abandon physical games and will consider player demand in future strategy. GamesIndustry.biz Latest Articles Feed · Eurogamer · Nintendo Life

  • Sony announced a Midnight Black PS5 Digital Edition for Japan in November using the country’s cheaper, region-locked variant. VGC · Eurogamer

  • Xbox announced a smaller Nano Controller with a rechargeable battery, available from November for $50. VGC

  • Analogue’s new Mega Sg+ and Super Nt+ consoles support original Sega and Nintendo cartridges and wireless controllers. TweakTown

  • Cult of the Lamb confirmed a Switch 2 version with a free upgrade path. Nintendo Life

Service closures

  • Fingersoft is ending Lego Hill Climb Adventures while retaining all staff, stopping in-app purchases October 23 and removing it from major app stores in December while existing users retain access into next year. Latest Updates | PocketGamer.biz

What to watch

  • Lego Hill Climb Adventures stops in-app purchases on October 23, ahead of its December store removal.

  • Sony’s Midnight Black PS5 Digital Edition for Japan and Xbox’s $50 Nano Controller are due in November.

  • Squad Busters leaves app stores December 1 before its December 14 server closure; The Division 2’s Chinese service also closes December 14.

  • Watch for confirmation of GTA 6’s reported Q1 2027 PC release window.

  • Watch for Fortnite and Epic Games Store Linux release dates; timing has not been announced.

How this was made: Waper follows this topic across 16 sources every day. This week had 43 stories; the most important are picked out, each with links to the original reporting. How we pick sources and stories