Embracer Group has entered (as of March 28) into an agreement to divest Gearbox Entertainment, for a consideration of USD 460 million (SEK 4.9 billion) to Take-Two Interactive Software, Inc. ("Take-Two"). The proceeds from the deal will, upon closing, significantly reduce net debt, earnout obligations and capex. Embracer retains selected companies, including Gearbox Publishing San Francisco (to be renamed), with the publishing rights to the Remnant franchise, the upcoming Hyper Light Breaker and other notable unannounced game releases.

"Yesterday's announcement marks the result of the final structured divestment process and is an important step in transforming Embracer into the future with notably lower net debt and improved free cash flow. Through the transaction, we lower business risk and improve profitability as we transition to becoming a leaner and more focused company. After evaluating several options for Gearbox, I am happy that we have reached a solution that is in the best interest of all stakeholders. Randy and the team have been great team members throughout the past years, and I would like to thank them all for that. As one of the world's greatest games developers, I am confident that Gearbox will continue to innovate and thrive in their new home within Take-Two," says Lars Wingefors, co-founder and CEO of Embracer.

We're thrilled to announce that Toys for Bob is spinning off as an independent game development studio! Over the years, we've inspired love, joy, and laughter for the inner child in all gamers. We pioneered new IP and hardware technologies in Skylanders. We raised the bar for best-in-class remasters in Spyro Reignited Trilogy. We've taken Crash Bandicoot to innovative, critically acclaimed new heights.

With the same enthusiasm and passion, we believe that now is the time to take the studio and our future games to the next level. This opportunity allows us to return to our roots of being a small and nimble studio. To make this news even more exciting, we're exploring a possible partnership between our new studio and Microsoft. And while we're in the early days of developing our next new game and a ways away from making any announcements, our team is excited to develop new stories, new characters, and new gameplay experiences.

Yesterday, Remedy Entertainment Plc ("Remedy") and 505 Games S.p.A. ("505 Games") announce a transaction upon which all publishing, distribution, marketing and other rights to Control, codename Condor, Control 2, and all future Control products will revert to Remedy. The Control franchise is in the core of Remedy. Having acquired the full rights to Control, Condor and Control 2, Remedy is now in a position to make the right product and business decisions focusing on long-term franchise growth.

The transaction has no immediate effect on the income statement, while we see attractive growth opportunities arising in the mid-to-long term. This transaction will enable us to negotiate better deals for current and future Control games. We can now weigh up the options between self-publishing and a new publishing partner for Condor and Control 2. At the same time, we are in a better negotiating position than before as Control is an established brand and Alan Wake 2 has been successful. We are confident that these factors combined will enable us to get the right partner, deal structure and risk-reward profile that benefit Remedy and are the best fit for the Control franchise. We will evaluate and negotiate with potential future partners over the coming months.

Game File reporter, Stephen Totilo, has discovered a new Nintendo-filed legal document—the Japanese multinational video game company's North American office is ready to do battle (in court) with Tropic Haze. The latter's Yuzu Switch Emulator is the focus of Nintendo's legal case—initiated on February 26, at the United States District Court for the District of Rhode Island. Totilo's social media summary of goings-on stated: "Nintendo is suing the creators of popular Switch emulator Yuzu, saying their tech illegally circumvents Nintendo's software encryption and facilitates piracy. Seeks damages for alleged violations and a shutdown of the emulator." The Dolphin Emulator—a Gamecube and Wii emulation platform—was removed from Valve's Steam store last year, following the sending of a Digital Millennium Copyright Act (DMCA) takedown order, but its development team was not pursued in US courts. The House of Mario is reportedly fiercely protective of its intellectual properties and technologies—gaining a hard-nosed reputation for engaging in plenty of legal action over decades past.

Nintendo's federal-level lawsuit alleges that Tropic Haze's Yuzu Switch Emulator played a large part in widespread illegal distribution of a 2023 flagship game title. They believe that "The Legend of Zelda: Tears of the Kingdom" was pirated over one million times in a time period prior to its official launch on Switch consoles, while Yuzu's Patreon funding almost doubled within the same cycle. Nintendo stated (through filed documentation): "With Yuzu in hand, nothing stops a user from obtaining and playing unlawful copies of virtually any game made for the Nintendo Switch, all without paying a dime to Nintendo or to any of the hundreds of other game developers and publishers making and selling games for the Nintendo Switch...In effect, Yuzu turns general computing devices into tools for massive intellectual property infringement of Nintendo and others' copyrighted works." They argue that Yuzu is capable of circumventing the Switch console's many layers of encryption—Tropic Haze's software, in their opinion, is "primarily designed" to break Switch software protections.

Job listings posted by Respawn Entertainment last summer indicated that their Star Wars Jedi: Survivor development team had moved onto an unsurprising project—the ideal candidate(s) would help: "create an incredible Star Wars experience for our players in a fun, third-person action-adventure setting." Games industry watchers believe that a third Star Wars Jedi title is in the works, given that the franchise has—so far—generated a large paying audience. Insider Gaming's Tom Henderson reckons that another Star Wars IP has been bestowed upon Electronic Art's action specialist studio—the report posits that this rumored project is in an early stage of development. Veteran developers at Respawn Entertainment have a long history of producing blockbuster first-person shooter titles, although Apex Legends signaled a slight change in course. Their deviation into third-person with 2019's Jedi: Fallen Order also surprised a segment of longtime Respawn fans.

It is possible that the Electronic Arts and Lucasfilm Games partnership has incubated a new first-person title semi-connected to a popular Star Wars television series IP—Henderson has gathered a few tidbits: "according to sources, the game will see the player take control of a Mandalorian bounty hunter (unclear who) set during the time when the Galactic Empire is dominating across the galaxy. It's your job, as a bounty hunter to capture bounties dead or alive for cash rewards." Rumor mill wires were crossed when it was claimed that a former Apex Legend director was heading up development on the unannounced "Mandalorian" project, but an Insider Gaming update reveals that the former Respawn member was involved in development of a cancelled Apex title.

Xbox and Microsoft Flight Simulator are immersing gamers worldwide in the captivating world of Arrakis, commemorating the highly anticipated release of "Dune: Part Two." Enthusiasts can anticipate a free game expansion for Microsoft Flight Simulator launching, bespoke Xbox hardware, and an awe-inspiring gaming simulator-all intricately inspired by the film. Two prominent stars from the movie, Timothée Chalamet, portraying Paul Atreides, and Austin Butler, who embodies Feyd-Rautha Harkonnen, captured the collaboration with a short video (see below).

Dune Comes Alive Like Never Before in Free Expansion
Microsoft Flight Simulator, working with Legendary Pictures and Warner Bros. Pictures, for the first time ever is taking you beyond Planet Earth into the harsh deserts of the world of "Dune" and the planet Arrakis. The skies of Arrakis are traversed by a deft craft called an ornithopter, a nimble flying machine propelled by four precisely tuned oscillating wings. The Royal Atreides Ornithopter is a special ultra-performance variant of the craft, renowned for its lightning acceleration, blazing speeds, and precision maneuverability when under the control of pilots skilled in its operation - and who have the fortitude to survive the harsh extremes of Dune.

Phoronix head honcho, Michael Larabel, has noticed another set of interesting updates for AMD Graphics on Linux—albeit in preparation for next generation solutions: "engineers on Monday (February 5) posted a few new patch series for enabling some updated IP (intellectual property) blocks within their open-source AMDGPU Linux kernel graphics driver. This new IP is presumably part of the ongoing hardware enablement work for their next-gen RDNA 4 graphics." Team Red GitHub patches for "GFX12" targets appeared online last November, again highlighted by Larabel's investigative work—AMD engineers appear to be quite determined with their open-source software endeavors, as seen in LLVM-Project notes regarding GFX1200's enablement.

The new "IP block" updates included patches for the enabling ATHUB 4.1, LSDMA 7.0, IH 7.0, and HDP 7.0—presumably for next generation Radeon graphics solutions. Larabel provided a quick breakdown of these components: "ATHUB 4.1 is needed for clock-gating / power management features, LSDMA 7.0 is the latest IP for Light SDMA for general purpose System DMA (SDMA) on the GPU, IH 7.0 for the Interrupt Handler on the GPU, and HDP 7.0 for the Host Data Path support for CPU accessing the GPU device memory via the PCI BAR. As far as code changes, the big chunks of the work are from the auto-generated header files." He believes that AMD's engineers have largely moved on from current generation tasks: "The big version bumps for these IP blocks all the more are likely indicative of these bits being for next-gen RDNA 4 as opposed to further iterating on RDNA3 or similar." The patches could be merged into the upcoming Linux 6.9 release, possibly coinciding with a Radeon RX 8000 series rollout.

According to Financial Times, a regional court in Düsseldorf, Germany, created a significant setback for Intel on Wednesday, issuing an injunction prohibiting sales of some of its processors due to allegations they infringe on a patent held by R2 Semiconductor. R2, a technology firm based in Palo Alto, California, accused Intel of violating its patent related to processor voltage regulation. The ruling applies to Intel's 10th, 11th, and 12th generation Core processors, known as Ice Lake, Tiger Lake, and Alder Lake, as well as its Ice Lake Xeon server SKUs. Newer processors generations (13th, 14th, etc.) don't infringe the patent. Even though Intel noted that it plans to appeal the decision, the ramifications could extend beyond the company itself. Industry experts warn the court order could lead to a sweeping ban on products containing the disputed Intel chips, including laptops and pre-built PCs from major manufacturers like HP and Dell. R2 has waged an ongoing legal fight across multiple jurisdictions to defend its intellectual property.

After initially filing suit against Intel in the United States, R2 shifted its efforts to Germany and other European countries after its patent was invalidated stateside. Intel strongly denied R2's patent infringement claims, alleging the company's entire business model relies on extracting legal settlements through serial litigation. Intel believes the injunction serves only R2's financial interests while harming consumers, businesses, and the economy. The two firms traded barbs in official statements about the case. R2's CEO, David Fisher, rebuffed Intel's characterization of his company, saying it has only targeted Intel for infringement of its clear IP rights. As the war of words continues, the practical impact of the German court's decision remains uncertain, pending Intel's appeal. However, the preliminary injunction demonstrates the massive financial consequences at stake in battles over technological patents.

Lenovo (United States) Inc., part of the global technology corporation, Lenovo Group, filed a patent infringement action on November 15th with the United States International Trade Commission (ITC) against ASUSTeK Computer Inc. and ASUS Computer International (ASUS) for infringement of a variety of Lenovo's patents related to software, hardware, and connectivity across multiple ASUS products. The action is in response to ASUS's August 2023 filings in the Regional Court of Munich related to cellular technologies, where Lenovo had offered a cross-licensing deal as a solution.

Lenovo is a strong proponent of cross-licensing agreements, open and transparent negotiations, and licensing within the industry on fair, reasonable, and non-discriminatory (FRAND) terms. This is evidenced by the Group's ongoing litigation with InterDigital, where it advocated for greater transparency and less discrimination in licensing negotiations and was proven by the UK Court to be a willing licensee. The action against ASUSTeK reflects the Group's commitment to protecting its significant contributions to technology innovation and industry "firsts" over the past 39 years, building a portfolio of over 28,000 patents with a further 14,000 applications pending.

Rapidus Corporation, a company involved in the research, development, design, manufacture, and sales of advanced logic semiconductors, today announced an agreement with Tenstorrent Inc., a next-generation computing company building computers for AI, to jointly develop semiconductor IP (design assets) in the field of AI edge devices based on 2 nm logic semiconductors.

In addition to its AI processors and servers, Tenstorrent built and owns the world's most performant RISC-V CPU IP and licenses that technology to its customers around the world. Through this technological partnership with Rapidus, Tenstorrent will accelerate the development of cutting-edge devices to meet the needs of the ever-evolving digital society.

In an event at the White House today, NVIDIA announced support for voluntary commitments that the Biden Administration developed to ensure advanced AI systems are safe, secure and trustworthy. The news came the same day NVIDIA's chief scientist, Bill Dally, testified before a U.S. Senate subcommittee seeking input on potential legislation covering generative AI. Separately, NVIDIA founder and CEO Jensen Huang will join other industry leaders in a closed-door meeting on AI Wednesday with the full Senate.

Seven companies including Adobe, IBM, Palantir and Salesforce joined NVIDIA in supporting the eight agreements the Biden-Harris administration released in July with support from Amazon, Anthropic, Google, Inflection, Meta, Microsoft and OpenAI.

Earlier this week it was reported that Ubisoft had cancelled development on its sequel to Immortals Fenyx Rising (2020)—Video Games Chronicle gathered information from multiple anonymous sources. The article proposed that: "a follow-up game was in early development at Ubisoft Quebec, but company leadership ultimately decided to cancel it earlier this month due to perceived challenges around establishing the IP." This studio was best known for its work on Assassin's Creed Odyssey (2018), but a brave decision was made to produce a new intellectual property—Giant Bomb's Jeff Grubb understood that Ubisoft had grand ambitions to turn Immortals into a big time franchise, with a continued multiplatform release strategy, as well as spin-offs.

Ubisoft has been going through a rough patch in recent times—several unannounced games were canned earlier this year, and many of the publisher's 2022 releases underperformed at retail. According to VGC's inside sources, Ubi leadership has prioritized prominent brands (e.g Assassin's Creed), and this rethink put the Immortals sequel's future in jeopardy. A company spokesperson has responded to the news site's article, and confirmed that development staff are now working on more important IPs: "As part of our global strategy, we are redirecting and reallocating some creative teams and resources within the Quebec studio to other unannounced projects. The expertise and technologies these teams developed will serve as an accelerator for the development of these key projects focused on our biggest brands. We have nothing further to share at this time."

The Financial Times this weekend has published details about an interesting development project that is currently in-the-works at British semiconductor specialist firm Arm Ltd. The article states that several executives in the industry have divulged (anonymously) that Arm's engineering team is designing a proprietary chip - these insider sources opine that this new creation could be one of the company's most advanced undertakings. The SoftBank-owned chipmaker is having a bumper year in terms of financial success and has invested in its future - it is speculated that their own semiconductor design will be showcased as a prototype product to potential new clients - with the main goal being to drum up more business and growth. Parent group SoftBank is likely pushing for maximum profit margins as it prepares Arm for an initial public offering (IPO) this year.

Arm's modus operandi involves partnering up with other chip manufacturers in order to license out its semiconductor intellectual properties. In turn these partners are expected to deal with the overall design and manufacturing processes of chips (plus sales of). Arm has teamed up with foundries TSMC and Samsung in the past to create prototypes for software testing purposes, but not much has been heard about those proofing projects in the following years. In an unusual turn (from certain industry perspectives) from its traditional working methodologies, it seems that Arm is embracing a different approach by producing its own compelling designs, with the hope of demonstrating greater potential to customers. FT's sources have provided evidence that Arm has expanded its operations and that a newly formed "solutions engineering" team is focused on prototyping new silicon for usage in mobile hardware and related devices.

Atari - one of the world's most iconic consumer brands and interactive entertainment producers - announced, on April 19, the acquisition of more than 100 PC and console titles from the 1980s and 1990s. The collection includes notable games from the Bubsy, Hardball, Demolition Racer series, as well as the 1942: Pacific Air War, F-117A, and F-14 air combat series. Atari will seek to expand digital and physical distribution of the classic titles, create new games based on the IP, and explore brand and merchandising collaborations.

"This is a deep catalog that includes groundbreaking and award-winning titles from Accolade, Infogrames and Microprose," said Atari CEO Wade Rosen. "Many of these titles are a part of Atari history, and fans can look forward to seeing many of these games re-released in physical and digital formats, and in some cases, even ported to modern consoles." Atari also acquired the trademark to the Accolade and GTI brands. Accolade was a well-respected US-based video game developer and publisher from 1984 until 2000.

Today Japan's Sega Sammy Holdings Incorporated declared its intention to fully acquire Finnish development studio Rovio Entertainment Oyj in a buyout valued at a cool $776 million. The Helsinki-based developer, responsible for creating the Angry Birds video game franchise, has agreed to Sega Sammy's terms - and Rovio share values have climbed as a result of this announcement. The deal is expected to be finalized in the late summer or early autumn of this year, and signals an ambition on Sega's part to gain prominence in the mobile gaming world. Rovio had previously turned down a proposed takeover by Playtika - an Israeli company specializing in digital entertainment - for $735 million, late last month.

Angry Birds was the first mobile game to be downloaded one billion times, according to figures released by Rovio, so Sega has acquired a solid intellectual property that has also expanded into the movie world (two animated features) and endless merchandising avenues (toys, clothing and other accessories). Commenting on the buyout, Haruki Satomi, President and Group CEO, Representative Director of Sega Sammy Holdings Inc. said: "Among the rapidly growing global gaming market, the mobile gaming market has especially high potential, and it has been Sega's long-term goal to accelerate its expansion in this field."

Japanese OLED display manufacturer JOLED has decided to throw in the towel, as the company board has filed for bankruptcy protection at the Tokyo District Court. JOLED has some 33.7 billion yen (US$257 million) in liabilities and is hoping to cover some of these by selling off assets. The Innovation Network Corporation of Japan (INCJ), which is the largest shareholder of JOLED, will be taking over its R&D department, along with around 100 employees as well as its intellectual property. However, it will not take over either of JOLEDs two fabs, located in Nomi and Chiba, Japan. The two fabs employ around 280 staff and currently the two fabs building displays using JOLED's innovative printing technology for OLED displays are expected to be closed.

However, as JOLED still has supply contracts with the likes of Apple, ASUS, Eizo, LG and Sony, INCJ will continue to operate the fabs for now, to fulfil the contracts for the time being. INCJ is apparently accepting responsibility to cover JOLED's liabilities, sheltering the other shareholders of JOLED, which includes Japanese Denso and Chinese CSOT/TCL. JOLED has struggled for most of its existence, being late to market with its OLED displays and haven't been able to compete with the likes of LG and Samsung in Korea and BOE Display and CSOT in China. Hopefully INCJ will be able to take advantage of the intellectual property from JOLED, as the company is focusing on making its own line of OLED displays in the future.

Softbank, the owner of Arm Ltd., is preparing everything it can to ensure a successful initial public offering (IPO) of Arm. However, ahead of the IPO, we have more information about Arm's plans to change its licensing and pricing structures to collect more royalties and ensure higher cash flow for future investors. Currently, Arm licenses technology in the form of intellectual property (IP), usually in different flavors of Cortex-A CPU cores that go inside processors for phones and laptops. Chipmakers that use the IP have additional expenses such as Arm ISA license fee and per-chip royalty, which is based on the chip's average selling price.

However, according to Financial Times, we have a new pricing structure that changes how Arm bills its partners and customers. From now on, Arm will grant licenses to chipmakers and ask them to only ship to device makers with an agreement with Arm. Additionally, these device makers now pay per-device royalty based on the device's average selling price (ASP). This ensures that Arm's fee applies to the higher margin product, which means that ultimately Arm will collect more cash flow from its customers and partners. Currently, the old model charges around 1-2 percents per chip in each smartphone, considering the ASP of smartphone chips to be $40 for Qualcomm, $17 for MediaTek, and $6 for Unisoc. However, taking the ASP of a mobile phone at $335, as recorded in 2022, the fee would be much higher. People familiar with the matter noted that Arm will apply this pricing structure as early as 2024. Apple and Samsung are not impacted by this change, as both companies enjoy their own agreements with Arm.

Microsoft is still deep into its negotiations with several international regulatory bodies regarding the buyout of Activision Blizzard, with a deadline looming it seems that tensions are rising. The UK's Competition and Markets Authority (CMA) needs a lot of convincing since it regards the proposed takeover as a serious threat to Sony's ability to compete with Microsoft, with the ownership of the Call of Duty series being a main focus. Sony has expressed concern about the blockbuster franchise becoming a potential Xbox console exclusive in the future - Microsoft has pledged to continue development on PlayStation platforms for a proposed 10-year period, with no technological compromises and a promise to release all versions simultaneously on launch days.

In its latest testimony given to the UK's CMA, Microsoft has made a (slightly odd) suggestion that Sony should figure out a way to make its own answer to the Call of Duty series: "Microsoft considers that a period of 10 years is sufficient for Sony, as a leading publisher and console platform, to develop alternatives to Call of Duty.…The 10-year term will extend into the next console generation.… Moreover, the practical effect of the remedy will go beyond the 10-year period, since games downloaded in the final year of the remedy can continue to be played for the lifetime of that console (and beyond, with backwards compatibility)."

Atari has announced that is buying Nightdive Studios for a cool $10 million - the abandonware specialists will become part of the publisher's larger ambitions to boost production of retro IPs. Nightdive's proprietary KEX engine will form the technological base for future remakes of Atari titles from the archives. As the news of this acquisition hit the web, the Nightdive Twitter posted a positive message regarding the buyout: "This is a big win for our team! As we look to continue producing high-quality, new, and remastered games that do justice to the original IP; we could think of no better long-term partner than."

Nightdive leaders Stephen Kick and Larry Kuperman stated in a joint statement: "Night Dive and Atari have a long history together and we know that Atari shares our passion for retro games and our focus on producing high-quality new and remastered games that do justice to the original IP. As we look to grow our business and expand our capabilities, we could think of no better long-term partner than Atari."