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Subnautica owner Krafton outlines plans to transform into an 'AI First' company

Tue, 04 Aug 2026 17:24:59 +0800

PUBG and Subnautica owner Krafton has restated plans to become an "AI First" company in its latest fiscal report.

The publisher, which also owns Hi-Fi Rush maker Tango Gameworks, reiterated ambitions first outlined in a Korean language document shared with investors on October 23, 2025.

Now, in the English version of its fiscal report for the third quarter ended September 30, 2025, Krafton explained it is accelerating towards becoming an AI First company as part of its broader mission to drive sustainable growth.

"By advancing its AI capabilities, the company aims to deliver differentiated user experiences and drive innovation across all services," reads the earnings report.

In a separate earnings presentation, the company said its AI First pivot will enable the "automation of new and existing tasks."

Krafton has established a GPU cluster valued at roughly KRW 100 billion ($70 million) to support that vision. The company said the investment will enable "large-scale creative experimentation and organizational transformation."

Related:Xbox hardware now costs a lot more in the UK and Europe

In addition, Krafton has partnered with South Korean telecommunications outfit, SK Telecom, to develop a proprietary foundation model with "five billion parameters" and build an "integrated AI development and deployment system" it claims will be capable of everything from large-scale training to in-game implementation.

"These initiatives strengthen Krafton's position as a leader in game AI technology and advance the development of Co-Playable Characters (CPCs)," continues the earnings release, touching on the CPC initiative detailed earlier this year. "In the first half of 2026, Krafton plans to introduce its first CPC, PUBG Ally, in PUBG: Battlegrounds Arcade Mode, giving players an innovative, strategic gameplay experience alongside AI companions."

Krafton said it also remains committed to discovering and developing "New Franchise IP." The company currently has 11 new projects in development (as of November 2025), which represents a major increase on the five titles it had in the pipeline this time last year.

Image via Krafton

The Persona 5 series has sold over 13 million copies

Tue, 04 Aug 2026 17:24:44 +0800

The Persona 5 series, which includes Persona 5, Persona 5 Royal, and spin-offs like Persona 5 Tactica, has surpassed 13 million sales.

The figure was disclosed in Sega's financial report for Q1 of the fiscal year ending March 31, 2026. As the company details, Persona 5 Royal, which was released in 2019, sold 1.03 million copies in its first year, and that number has since grown to 7.25 million copies cumulatively.

"We believe that concentrated investment to enhance title quality, brand strength reinforced through our transmedia strategy, and the worldwide reach of digital distribution have all contributed to the growth in repeat sales," reads the report to investors.

Meanwhile, Persona 3 Reload, released on February 2, 2024, has sold over 2.07 million copies since launch. In total, the Persona series has surpassed 23.5 million sales worldwide.

Sega plans to focus on further transmedia strategies and Games as a Service titles

Back in July, Sega president and COO Shuji Utsumi said that companies with a "good record" tend to have strong global Games as a Service (GAAS) business models.

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"Strengthening our global GAAS offerings through free-to-play titles is a highly important element of our strategy to expand our key pillars," they remarked on the financial report. This refers to the launch of Persona 5: The Phantom X in June of this year, a free-to-play title with microtransactions via gacha rolls available on mobile and PC.

"By expanding touchpoints worldwide, we expect further value enhancement of the Persona IP and a steady contribution to earnings," Sega adds.

Meanwhile, the company also spoke about developer Rovio, which it acquired back in August 2023. Sega sees the upcoming mobile game Sonic Rumble, slated to release this year, as its way to "aim for global market success" through collaboration with Rovio. At the same time, Rovio laid off 36 employees just two weeks ago. According to a spokesperson, the redundancies were partially due to Angry Birds Dream Blast not performing as expected.

Regarding Sonic Rumble, the company adds that, being its first "full-scale global mobile title," development is "taking longer than expected" due to emphasis on quality and user feedback.

"By reinforcing the GAAS model in this way, we are aiming to further reinforce a multilayered revenue structure, like 'mille-feuille,' as a component that provides consistent, sustainable earnings," it adds.

Regarding Sega's push for transmedia, in addition to Sonic—the Sonic the Hedgehog movie franchise surpassed $1 billion in worldwide box office receipts in January of this year—the company plans to expand this strategy to other IPs, such as Like a Dragon and Persona. The former got a live-action TV show adaptation last year. The strategy includes "movies, animation, merchandising, events, and other areas."

Related:PlayStation 5 sales have topped 95 million units worldwide

Going forward, Sega is advancing video adaptation projects based on OutRun and Shinobi. "In the past, games based on movies often became hits. Recently, that trend has reversed, with movies and anime based on games achieving great success, reflecting growing global attention toward game IPs," the company adds.

As a summary, Sega reported net sales of ¥81,026 million ($527,669 USD), an operating loss of ¥519 million ($3,379,907 USD), and adjusted EBITDA of ¥1,461 million ($9,512.28 USD).

Sumo Group-owned outsourcing studio Atomhawk closes Canadian branch

Tue, 04 Aug 2026 17:24:36 +0800

Atomhawk, a UK-based outsourcing studio under the Sumo Group umbrella, has closed its Canadian branch and laid off the entire Vancouver-based team.

The company shared the news yesterday via LinkedIn. In a statement, Atomhawk leads said this decision "affects a small team of undeniably brilliant artists, creatives, and friends," albeit without disclosing the reason behind the decision.

The Canadian studio operated for eight years. During this time, according to the statement, it spearheaded multiple research and development initiatives along with its outsourcing work. Atomhawk's portfolio includes games like Skate, Age of Mythology: Retold, and Helldivers 2, among many others.

"We want to thank the Canadian team for their passion, dedication, and ideas," reads the statement. "You will always rock, and as the saying goes: once a Hawk, always a Hawk. Atomhawk will continue to operate from the UK as a creative innovation partner for the games industry, building on the legacy of all past and present Hawks."

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The studio leads also said the company is "supporting all those affected," but hasn't disclosed the number of affected employees, nor what the support entails. When asked about this, as well as the reason for the studio closure, operations and commercial director Becky Jackson said in a statement that "almost every company in the industry right now is having to make difficult decisions on a regular basis." In addition, Jackson said that the LinkedIn statement "covers all of the aspects of the closure that we're prepared to discuss at the moment."

"I'm sorry to say that I, along with the entire Canadian Atomhawk team, have been laid off after the closure of the Vancouver studio," said one of the affected employees on LinkedIn. "I have been a part of that team for the past 3+ years and it's heartbreaking to see it dissolve."

Sumo Group decided to focus exclusively on co-development work earlier this year

In February, the UK company stated that it would no longer develop its own properties, instead focusing exclusively on co-development work. Back Sumo said the goal is to balance its creative ambitions with shifting "commercial realities" to deliver long-term stability. It also explained its studios and workforce would be impacted by the transition, but neglected to provide additional details.

The news came six months after Sumo, which is owned by Tencent, laid off 15 percent of its workforce and shuttered Canadian studio Timbre Games.

Back in February, Sumo had 1,500 workers spread across 18 studios in the UK, Canada, India, and the United States — including Sumo Digital, The Chinese Room, Red Kite Games, Auroch Digital, and Atomhawk.

Related:PlayStation 5 sales have topped 95 million units worldwide

In 2021, the company was purchased by Tencent for $1.27 billion via its Sixjoy Hong Kong Limited subsidiary.

Update 11/06: This story has been updated with comment from Atomhawk.

'Collect the data and share the data:' How can game companies support women with leadership ambitions?

Tue, 04 Aug 2026 17:24:28 +0800

Why aren't there more women in leadership roles within the game industry and what is the solution? It's a question former Sony Santa Monica director of product development, Meghan Morgan Juinio, and Gearbox Montreal executive producer Fleur Marty grappled with during an on-stage conversation at Gamescom Asia x Thailand Game Show.

First, Juinio provided some context to explain why answering that question is so important. She noted that, according to the Entertainment Software Association's latest 'Annual Facts' report on the U.S. video game industry, around 205 million Americans currently play video games—and 47 percent of those players identified as women.

But how many women are building video games?

The latest GDC State of the Industry survey found that around 25 percent of developers identified as women. Discussing that data, Juinio questioned how many of those respondents were game directors or studio heads? How many are executives sitting at the top of the table, making decisions about which titles get funded?

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"I think over the past five to ten years, collectively around the world, we've put a great amount of effort and energy into bringing more girls into STEM (Science, Technology, Engineering, and Mathematics). We've created more pathways for girls in high school and university to have mentorship and internship programs that create pathways for entry-level roles in the game industry," said Juinio.

"We want to continue that, but I believe this is a 'yes and' conversation here. So, now what? How do we bring more women along to influence the content that gets into the hand of the players?"

To find out, I took advantage of a Q&A session to ask Juinio and Marty how major publishers and studios—such as the ones that promoted them into senior positions—can take practical steps to help women who wish to pursue leadership roles?

"If you don't ask the question you'll never know"

Juinio said there are many opportunities for companies to put their best foot forward in that regard. "One of them, which is quite basic, is to collect the data and share the data with hiring managers," she explained.

"I'm not advocating for quotas or for top-down forced [hiring policies] that dictate what the team makeup needs to look like from a gender perspective, but If your hiring managers don't have awareness of what the makeup of the teams look like, how can they be part of the evolution we want to inspire here? So collect the data and share the data."

She added that employers should also strive to find and nurture cohorts of like-minded women within their studios by establishing development programs that allow women from different disciplines to connect. "Maybe there's one female engineer on Team A and two female animators on Team B and one female designer on Team F, way over there," Juinio continued. "But do they know each other? Do they have opportunities to meet and connect? I think really looking to foster connection and support and this sense of community will really help women to be stronger."

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Marty agreed and noted how, when she worked at Warner Bros. Montreal, she kickstarted a Slack channel called 'Women of Warner' to unite women from different disciplines.

"At the time, developers were very separated from QA—because QA was on the publishing side and handling all of the titles for the company, while devs were just at Warner Montreal," she recalled.

"But I said 'no, anybody who worked at Warner Montreal should be part of this and it allowed a lot of the women in QA to connect with devs and ask them questions. It's so simple and it's free and it's the most basic thing, but allowing that connection [helps]."

Marty added that companies should be proactive in identifying women who want to pursue leadership opportunities to figure out how to meet their specific needs. "Not everybody wants a leadership role," she added. "Some people are happy to remain individual contributors and experts, but if you don't ask the question you'll never know. So identify them and then ask 'what's the path [for this person]? What does that look like?' and start building."

Related:EA clears US regulatory approvals in take-private deal

Game Developer attended Gamescom Asia x Thailand Game Show 2025 as a media partner, with flights and accommodation being covered by event organizers.

Unity CEO: AI-driven tools will improve game discoverability

Tue, 04 Aug 2026 17:24:20 +0800

Unity CEO and president Matthew Bromberg said that, as the number of games released continues to grow, the importance of generative AI-driven discovery tools will be at the "forefront" to stand out in the market.

During the Q3 2025 earnings call with investors, Bromberg said that AI will be an important element in discoverability, especially as the number of released games continues to increase. "The explosion for really amazing new games, which we're already seeing and it's gonna continue growing markedly, it's going to put the importance of AI-driven discovery ever more in the forefront."

Bromberg's reasoning is that Unity is in a position to help developers and publishers sort through what is a difficult market, because there will be "so much more content" in an already competitive marketplace. "We think we have a role to play in helping our customers take advantage of that growing path," he said.

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This is related to a previous remark during the earnings call, in which the CEO spoke about Unity's goal for the democratization of game development that can allow individuals to "build a game that millions of people can play," after mentioning recent examples of Unity-made successful titles like Peak, which surpassed 4.5 million sales within a month, and and Ball x Pit, which sold over 400,000 copies on its first week (via the official account on X), amid others.

As such, Bromberg posited that we're seeing a "kind of next turn of the wheel" now, in which "AI technologies are gonna allow us to make that game development process ever more accessible," adding that these tools will allow developers to spend less time "mired in the start line" of building features and functionalities to spend time "innovating" instead. This also includes offering tools to non-software developers and content creators to push for interactive short-form content.

Unity's third-quarter financials "exceeded expectations" thanks to Vector AI and "continued strength" in Create

Bromberg's comments don't come as a surprise, considering Unity has been leaning heavily on AI. This is despite game developers not warming up to generative AI, and some of them being more worried than ever that the technology will lower the quality of games.

In late September, Unity established an AI Council that it claimed would "accelerate the pace and quality of innovation" across the company.

As we reported back then, the news came around two months after Unity lauded its AI-powered advertising platform, Unity Vector, for "transforming" the company's growth prospects following a turbulent period of widespread layoffs, leadership changes, and public grovelling in the aftermath of the company's infamous Runtime Fee rollout.

Related:PlayStation 5 sales have topped 95 million units worldwide

According to the Q3 2025 earnings results, revenue was $471 million, up 5 percent year-over-year. Create Solutions revenue was $152 million, up 3 percent year-over-year. This was driven by "strong growth in subscription revenue, offset by decreases in consumption services revenue, driven by our portfolio reset."

Then, Grow Solutions revenue was $318 million, up 6 percent year-over-year. This increase was driven by "strong performance of the Unity Ad Network, powered by Unity Vector." The company reported a net loss of $127 million for the quarter, compared to $125 million in Q3 2024, as well as a net loss margin of 27 percent, compared to 28 percent in Q3 2024.

During the earnings call, multiple investors asked Unity leads about Vector's growth, to which Bromberg responded that the company is looking at the technology in the long term. While runtime data is a multi-year growth opportunity for the company, absent any contribution, Unity is "confident" on the growth trajectory of Vector.

When asked about how the revenue from Solutions excluding Unity Vector did in the quarter, and how to think about that long-term, whether it'll see growth or stay flat, Bromberg said the company isn't reporting breakdowns in ad revenue.

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"I would say in general we couldn't be more proud of the progress we're making across the entire segment, we're seeing really positive trends across all of our ad businesses, and we expect that number to grow over time, but beyond that I don't think we want to comment too much," he said.

Google to reduce Play Store fees after settlement with Epic Games

Tue, 04 Aug 2026 17:24:09 +0800

Google and Epic Games are both trumpeting a proposed settlement to the latter company's 2020 lawsuit, two years after a federal judge ruled the Google Play application store constituted an illegal monopoly.

According to The Verge, the settlement (which needs to be approved by the judge) introduces a new tiered service fee system that allows developers to retain a larger cut of each transaction for their apps. Google will cap its fees at nine or 20 percent depending on the type of transaction and the date on which the app was installed.

Google can still charge another fee for transactions that take place through Play Billing, though developers will now be able to include alternative payment options that can be shown side-by-side with Google's in-game purchasing platform. They would be free to set different prices for transactions on alternative platforms.

This is a compromise on Epic's part. The company previously demanded Google stop forcing developers to implement Google Play Billing.

Related:Spin Master lays off Paw Patrol: The Game devs two days after launch

Finally, Google is promising to remove "scare screens" and allow easy installation of approved alternative app stores. App store operators can seek approval through a "Registered App Store" program.

Over on X, Android president Sameer Samat said these changes "focus on expanding developer choice and flexibility, lowering fees, and encouraging more competition all while keeping users safe."

Epic Games CEO Tim Sweeney concurred, calling the propose settlement "awesome." "It genuinely doubles down on Android's original vision as an open platform to streamline competing store installs globally, reduce service fees for developers on Google Play, and enable third-party in-app and web payments," he said.

He then took a swing at iOS creator Apple, which Epic is still brawling with in court. "This is a comprehensive solution, which stands in contrast to Apples model of blocking all competing stores and leaving payments as the only vector for competition."

Update 11/5: This story has been updated with correct information on Google's new Play Store fees. A previous version incorrectly defined the percentages as being tied to the type of in-game transactions.

Rockstar accused of deflecting after claiming fired union workers leaked information

Tue, 04 Aug 2026 17:24:00 +0800

Grand Theft Auto maker Rockstar Games says it fired more than 30 employees in the UK for sharing company information in a forum that included non-employees—not for engaging in trade union activity.

Last week, the Independent Workers Union of Great Britain (IWGB) said over 30 people had been ousted by Take-Two Interactive subsidiary Rockstar for attempting to improve their working conditions by joining a union. Take-Two and Rockstar initially said those employees were fired for "gross misconduct" but have now expanded on those comments.

"We took action against a small number of individuals who were found to be distributing and discussing confidential information in a public forum, a violation of our company policies," a Rockstar spokesperson told Bloomberg. "This was in no way related to peoples right to join a union or engage in union activities."

In a statement sent to Game Developer, an IWGB spokesperson said Rockstar is attempting to "deflect" from the truth and remains afraid of "hard working staff privately discussing and exercising their rights for a fairer workplace and a collective voice."

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"Management are showing they don't care about delays to GTA VI, and that they're prioritizing union busting by targeting the very people who make the game," they added. "In recent years, Rockstar executives have benefited from £443 million in tax relief, while showing total disregard for the law or the livelihoods of their staff. At every turn, they've chosen profits over both workers and fans of their games."

Crucially, the IWGB said UK workers have a statutory right to engage in private conversation with union organizers that supersedes any employment contract.

Those discussions took place via a private Discord channel that all of the fired workers had joined. IWGB said members of that Discord channel never discussed Rockstar products or titles.

Today's update comes just hours after a group of IWGB members and supporters protested outside Take-Two's headquarters in London to demand the reinstatement of every single fired employee. "Rockstar Games fired 30+ IWGB union members for no other reason than to terrorize and silence them," reads a post on Bluesky promoting the picket.

Game Developer has reached out to Take-Two Interactive for comment.

NetEase subsidiary Bad Brain Game Studios is shutting down

Tue, 04 Aug 2026 17:23:55 +0800

NetEase subsidiary Bad Brain Game Studios is shutting down on November 17, 2025.

The Canadian studio confirmed the news in a post on LinkedIn and explained it tried and failed to seek a new partner in a bid to keep the lights on.

Chinese conglomerate NetEase has severed ties with a number of its western studios this year, including T-Minus Zero Entertainment and Fantastic Pixel Castle.

In February, NetEase committed to supporting its overseas studios—but said some changes might be "necessary"—after Bloomberg reported the company had laid off hundreds of employees across its studio network. Despite those assurances, it has continued to scale down its network of internal studios.

"It's with a heavy heart that we share that Bad Brain Game Studios will be closing its doors. Our last official day of operation will be on November 17th," wrote Bad Brain on LinkedIn.

"Despite our continuing efforts to seek a new partner for the project, a path forward has yet to materialize. We are deeply grateful to NetEase Games for their support and for giving us runway to explore every possible opportunity."

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Bad Brain was established in 2023 and had been working on what it described as an "ambitious new franchise" under the leadership of former Ubisoft producer Sean Crooks.

The studio still hopes its debut project will see the light of day and has reminded investors that its game and underlying IP are available for acquisition.

"We [and] NetEase are open to discussions with publishers or studios who see potential in continuing its development. We believe strongly in what was created, and would love to see this world find its way to players," continues the LinkedIn post.

"To help support our people as they take their next steps, well also be releasing a sizzle reel from the project publicly, giving everyone the chance to showcase their incredible work and open doors to new opportunities."

Game Developer has reached out to NetEase for comment.

Discord rolls out new teen safety and moderation tools for guardians

Tue, 04 Aug 2026 17:23:48 +0800

Content notification on discussions of grooming, sexual exploitation, coercion, and suicide.

Discord has announced an assortment of new teen safety tools and features to its Family Center, which launched in 2023, primarily aimed at guardians. The news comes as the company is facing multiple lawsuits regarding teens who allegedly suffered grooming and sexual exploitation on the platform, as well as in Roblox.

In a blog post that went live yesterday, the company stated that the update is meant to help guardians stay informed and play a more active role in their teens' online experiences, while also giving teens autonomy to shape their "digital environment."

The features, which will roll out over the next week, allow guardians more visibility over weekly activity, including all purchases made, total minutes spent on voice and video calls, and the top five users and servers a teen most frequently messaged and called in the last week.

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In addition, if a teen submits a report on another user or piece of content to Discord, they'll have the option to notify their guardian. If they do, the guardian will receive an email with the notice, but this won't include the details of the report. Similarly, while guardians can now filter who can DM a teen and whether sensitive content is filtered, the exact content of conversations isn't shared.

The new teen safety tools roll out amidst lawsuits pertaining to allegations of Discord being unsafe for underage users

The blog post includes bulleted lists aimed at both teens and guardians, with the former noting that "your voice matters" and that "privacy is protected." For guardians, Discord advises they "play a more active role in safety," to "nurture trust," and "start better conversations" with teens. "Were focused on making it easier for you to offer guidance, not surveillance," the announcement reads.

Back in April, Roblox Corporation and Discord were sued over allegations that each company facilitated the sexual harassment and exploitation of a minor across both Roblox and Discord. The lawsuit was filed in California on behalf of an underage plaintiff referred to as 'Jane Doe', taking aim at both platforms for allegedly enabling an accused sexual predator to harass and exploit Doe during interactions on each.

The accused individual allegedly targeted the teen through two games within the Roblox ecosystem, sending her messages through the "whisper" function even though her Roblox account "clearly displayed" she was a minor. Over time, the plaintiff was convinced to share her Discord username with the accused predator, leading to conversations on the popular chat platform where she was then coerced into sending sexually explicit images. These events took place over the course of six months.

Related:PlayStation 5 sales have topped 95 million units worldwide

Back then, Discord declined to directly comment on the case in a message sent via a spokesperson. "Discord is deeply committed to the safety of our users and we take decisive actions when we detect violations of our policies, including removing content, banning users, shutting down servers, and engaging with law enforcement," the company said in a statement.

In September, via NBC news, the mother of a 15-year-old California boy who took his own life sued Roblox and Discord over his death, alleging the son was groomed and coerced to send explicit images on the apps.

The lawsuit was filed by Rebeca Dallas in San Francisco County Superior Court, accusing the companies of "recklessly and deceptively operating their business in a way that led to the sexual exploitation and suicide" of Ethan Dallas. The son started playing Roblox at the age of 9 with his parents' approval and with parental controls in place. The alleged targeting by an "adult sex predator" who posed as a child in Roblox began when he was 12, attorneys for Rebecca Dalas said in a statement to NBC at the time.

Related:EA clears US regulatory approvals in take-private deal

Conversations "gradually escalated to sexual topics and explicit exchanges," and the son was allegedly encouraged to turn off parental controls and move conversations to Discord, the lawyers said. On Discord, the man "increasingly demanded explicit photographs and videos," and threatened the son that he'd post or share the images. The son complied out of fear, the complaint says.

This lawsuit accuses Roblox and Discord of wrongful death, fraudulent concealment and misrepresentation, negligent misrepresentation, and strict liability. It argues that if Roblox and Discord had taken steps to screen users before allowing them to register on the apps, or implemented age and identity verification and other safety measures, the aforementioned events wouldn't have transpired.

Regarding Discord specifically, the suit said the platform is "overflowing with sexually explicit images and videos involving children, including anime and child sex abuse material."

A spokesperson told NBC that the platform is "deeply committed to safety," and that it wouldn't comment on legal matters. "We require all users to be at least 13 to use our platform. We use a combination of advanced technology and trained safety teams to proactively find and remove content that violates our policies,” the spokesperson said. “We maintain strong systems to prevent the spread of sexual exploitation and grooming on our platform and also work with other technology companies and safety organizations to improve online safety across the internet."

While the new features and moderation tools are helpful on paper, Discord makes the clarification that communication between teens and guardians is a key element throughout the announcement. But as seen with regulations like the UK Online Safety Act, people will always try to bypass verification systems. Less than 24 hours after the act came into effect in July, PCGamer reported that some people were able to bypass Discord's verification by using the face of Sam Porter Bridges in Death Stranding 2 in Photo Mode.

Former Wizards of the Coast exec resurrects canceled game at new studio

Tue, 04 Aug 2026 17:23:41 +0800

A game previously canceled by Dungeons & Dragons and Magic: The Gathering owner Wizards of the Coast has found new life at a new studio helmed by a former executive.

Today, Level Headed Games founder Leah Hoyer—formerly the GM and vice president of creative at Wizards of the Coast—announced that her studio has secured ownership of the hereto unannounced "collaborative arena party game." Hoyer had led development on the game while at Wizards, but left the company (per her LinkedIn page) in February 2023, after Bloomberg News reported the company canceled five in-development games.

Hoyer founded Level Headed Games that same month with "participation" in an a16z Speedrun. It appears the game is not based on an existing property. The company described the game as an "accessible gaming experience" aimed at "Gen Z and multi-generational" players, and said the game was previously in development at Wizards' "new IP studio."

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Hoyer said early testing showed the game had "excellent promise," and the team had been making "rapid progress" in building the new setting.

“We are grateful to Wizards of the Coast that we were able to keep the project going," she concluded. "We arent building our game the way we originally thought we would, but change is the one constant in the industry these days. We regrouped, made critical shifts to reflect the realities of our new team size, and got back to work making something that we are really proud of."