Disney buys into OpenAI, another studio escapes Embracer, and The Game Awards trailers cost how much? - Patch Notes #34
Hello! Please forgive my rather flustered disposition. I'm penning this week's Patch Notes—which will be our last of 2025 because I'm about to break for the holidays—from LAX. Unlike every other journalist in the video game industry, I'm actually flying out of Hollywood tonight instead of schlepping down to Geoff Keighley's advertising bonanza.
Ahem, I mean award show.
Our senior editor Bryant Francis will be downtown reporting from the fringes, but I'm about to hop on a 15 hour flight back to Manchester. That means I only have time to wish you all a wonderful holiday season, however you celebrate, before I absolutely insist on diving into this week's biggest headlines. Away we go!
Major shareholder denounces Square Enix for 'sluggish' revenue and profit marginsvia Game Developer // At least one of Square Enix's core shareholders isn't happy with the returns being delivered by current leadership. In a scathing press release in which the word 'sluggish' features a mind-boggling number of times, 3D Investment Partners Pte. Ltd claimed the management team that took charge of the Final Fantasy maker in 2022 has allowed it to be overtaken by its competitors. It is now encouraging other stakeholders to share their "frank views" to assist management in enhancing the company's corporate value.
Disney Agrees to Bring Its Characters to OpenAIs Sora Videosvia The New York Times // Disney has penned a deal with generative AI magnate OpenAI that will bring its characters to the company's short-form video platform, Sora. Although the deal isn't directly related to the video game industry, it's fascinating to see a titan like the House of Mouse—whose characters frequently venture into our medium (The Simmons in Fortnite, anyone?)—shack up with the divisive content machine.
Voice actor union SAG-AFTRA pledges to monitor Disney's deal with OpenAI to "ensure compliance"via SAG-AFTRA // Shot meet chaser. Shortly after Disney announced its deal with OpenAI, voice performer union SAG-AFTRA issued a rather forbidding statement to explain will be closely monitoring the deal. That is, of course, the same SAG-AFTRA that voted to strike earlier this year to secure AI protections and better working conditions for performers in the video game industry.
Some Nominated Devs Cant Even Afford To Be A Part Of The Game Awardsvia Kotaku // How much do you reckon it costs to briefly shimmy into the spotlight at The Game Awards? According to a new report from Kotaku, it ain't cheap. Multiple sources told the outlet that nabbing a 60-second trailer at the 2025 ceremony costs up to $450,000. A three minute trailer? That might set you back over $1 million. You might be able to develop and ship a hit game for less.
Lost Boys Interactive splits from Embracer Groupvia Lost Boys Interactive // Tiny Tina's Wonderlands developer Lost Boys Interactive has mutually uncoupled from Embracer Group to become an independent studio. The company, which had faced layoffs under its now-former owner, has previously been retained by Embracer after it divested Gearbox Interactive. In a post on LinkedIn, however, Lost Boys confirmed it is now free to chart its own path.
UK Prime Minister promises to 'look into' Rockstar's firing of workersvia Game Developer // In a rare win for Kier Starmer, the UK Prime Minister said his government will look into allegations of union-busting at Rockstar Games. Over 30 workers claim they were fired by the Grand Theft Auto maker for engaging in union activity. Rockstar said it jettisoned those staffers for discussing confidential information, but Starmer (who was Director of Public Prosecutions from 2008 to 2013) described the case as "deeply concerning."
