Valve in hot water, Discord begs forgiveness, and more game media layoffs - Patch Notes #42
Friday! What a concept. I was out of the office this time last week and predictably missed one of the busiest news days in recent memory. Xbox decided to announce its big leadership shift while I was about four pints deep in one of Liverpool's many fine boozers. In retrospect, you could probably say the fates blessed me.
The video game industry is still collectively unpacking what the changing of the guard means for Microsoft's gaming division. And despite a flurry of interviews with incoming Xbox boss Asha Sharma—including this one from Windows Central that included the profoundly obtuse quote "the plan's the plan until it's not the plan"—we're still left with more questions that answers.
Understandably, this week was more of a return to form for the game industry, which unfortunately means more layoffs, studio closures, and AI gubbins for your reading (dis)pleasure.
I promise, one day this roundup will be filled with nothing but positivity. One day.
Oh, and loot boxes were also back in the headlines for all of the no good, very bad reasons you've come to expect. Talk about a throwback.
Krafton names chief AI officer to 'advance AI-driven game innovation'via Game Developer // Krafton, the self-proclaimed "AI-first" company that makes PUBG and owns Tango Gameworks, has appointed a new chief AI officer to usher in all kinds of innovations that will apparently "enhance gameplay experiences and support development teams." We suspect those plying their trade outside the c-suite might be a little bit skeptical about that claim.
Embark Studios CEO Patrick Soderlund named executive chairman of Nexonvia Game Developer // It's no secret that Arc Raiders has been a meteoric success. The extraction shooter has sold over 14 million copies worldwide to turn developer Embark Studios into a household name (assuming your household enjoys video games). Publisher Nexon has also been bowled over by the title's popularity, so much so that it has now named Embark boss Patrick Soderlund as its new executive chairman.
Tencent closes TiMi Montreal game studiovia Game File // Timi Montreal has been shuttered by parent company Tencent five years after it was established. The studio failed to release (or even officially announce) a video game during its half-decade of existence, but had been working on a multi-platform project billed as a "ambitious AAA, service-driven open-world game."
'We failed at our most basic job:' Discord delays age verification rolloutvia Game Developer // Is it better to beg for forgiveness than ask permission? Discord certainly seems to think so. The company has apologised for missing the mark when announcing an age verification process earlier this year. In a lengthy blog post, Discord co-founder Stanislav Vishnevskiy conceded the original announcement was light on detail and rationale, and pledged to do better when the company does eventually implement age verification later this year.
Games media set for more layoffs, as IGN-owned Eurogamer cuts editorial staffvia VGC // The bloodletting continues across the game media industry. IGN parent company Ziff Davis has decided to jettison even more talent from British publication Eurogamer in what will be the second round of (confirmed) layoffs since it acquired the outlet (and other Gamer Network brands) in 2024. Reports indicate that Ziff Davis intends to oust some of Eurogamer's most experienced editors and its entire four-person video team. Video channel Outside Xbox has also been impacted.
Riot Games confirms layoffs within publishing divisionvia Game Developer // Tencent-owned Riot Games has laid off around 12 employees across its publishing division. The company confirmed the news in a brief statement to Game Developer and said the cuts impacted three publishing teams and coincided with other "small team-by-team changes."
Valve sued by New York Attorney General for allegedly promoting gamblingvia Office of the New York State Attorney General // Valve is in hot water in New York City (pronounced in the style of Matt Berry). The company has been accused of encouraging gambling within Counter-Strike 2, Team Fortress 2, and Dota 2 by incorporating "loot boxes." Attorney General Letitia James claims the mechanic is akin to a slot machine because the items they spit out carry real-world value. That, she posits, is a big red flag—and must be prevented.
The Story Behind the Failure of 'Highguard'via Bloomberg // A mid-production pivot from a Rust-like survival title to a raid-based hero shooter and financing from Tencent that was seemingly dependent on retention targets. This is the story of Highguard, the live-service moonshot from Wildlight that closed out The Game Awards in December only to be placed on life support immediately upon arrival. Bloomberg has the scoop.
