strategic shifts

AppWizard
March 28, 2025
Warner Bros has halted the development of an expansion for Hogwarts Legacy due to concerns that the amount of content did not justify the proposed price. The expansion was being developed by Avalanche Software in collaboration with Rocksteady Studios. Rocksteady has faced challenges, including layoffs and ceasing support for Suicide Squad: Kill the Justice League, which contributed to Warner Bros' admission of underperformance in its gaming division. The company also decided to close three studios, including Monolith Productions, and experienced a leadership change with the departure of gaming division head David Haddad.
AppWizard
February 20, 2025
Netflix has initiated layoffs at Night School Studio, which will not affect the studio's current content lineup. The layoffs were announced in January and are part of a broader shift in Netflix's gaming strategy, which includes the closure of its triple-A Blue studio. Mike Verdu has transitioned to a new role overseeing generative AI, and Alain Tascan has been appointed to lead Netflix's gaming division. Night School Studio was acquired by Netflix in 2021.
AppWizard
February 13, 2025
Crytek has announced a workforce reduction of approximately 15 percent, affecting around 60 employees in development and shared services, due to "complex, unfavourable market dynamics." The development of the next Crysis installment is on hold, and the company is shifting focus to enhance the ongoing project, Hunt: Showdown 1896. Crytek will provide severance packages and career assistance to those laid off. The company remains committed to the development of Hunt: Showdown 1896 and advancing its CryEngine technology.
AppWizard
February 7, 2025
Warner Bros. Games is facing significant challenges following the poor performance of several titles, including Suicide Squad: Kill the Justice League, which led to a 0 million loss. Rocksteady Studios is planning a new single-player Batman game, returning to its roots after the disappointing reception of previous games. Hogwarts Legacy was a success, but Quidditch Champions has struggled with only 90 users on Steam, and Multiversus has halted development due to a loss of interest. The anticipated Wonder Woman game has been rebooted, and WB Games Montreal shifted focus from Gotham Knights to a now-scrapped Flash game. CEO David Haddad is departing, and JB Perrette has projected a return to profitability by 2025, although it may take two to three years to achieve this.
AppWizard
August 22, 2024
Headup has launched an indie studio named Good Squad, transforming its internal development team that contributed to titles like Tinkertown and Dr Fetus' Mean Meat Machine. Good Squad will operate independently to foster innovative gaming experiences and enhance Headup's publishing strategy. Both entities are part of Microcuts Holding, led by Dieter Schoeller, who acquired Headup from Thunderful for €500,000 in March 2023, following Thunderful's earlier purchase of Headup for €11 million three years prior.
AppWizard
May 15, 2024
Naver, a South Korean tech powerhouse, is facing pressure from its Japanese partner SoftBank to divest a portion of its stake in Line, a popular messaging app in Japan. The Japanese government's scrutiny following an information breach incident has led to a directive for Naver to review its capital relations with SoftBank and improve cybersecurity measures. This could potentially impact Naver's control over Line, which holds about 70% market share in Japan and is crucial for Naver's international sales strategy, with Japan accounting for about half of its overseas revenue. Negotiations over Line's governance structure between Naver and SoftBank are expected to conclude soon.
Winsage
May 8, 2024
Microsoft is offering voluntary severance packages to employees at ZeniMax as part of a broader cost containment strategy. The internal debate over including Call of Duty in Xbox Game Pass and potential price hikes for the subscription are hot topics among Microsoft insiders. Studio shutdowns, like Tango Gameworks, are part of Xbox's goal to streamline operations and focus efforts. There is uncertainty about the future of Xbox Game Pass pricing and Microsoft's communication strategy as the gaming community anticipates upcoming announcements from Xbox.
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