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Troubled Bandai Namco Pressures 15% of Japanese Staff To Resign, Cancels at Least 3 Major Games

Despite the recent successful launch of Dragon Ball Sparking! Zero, which sold 3 million units in 24 hours, it looks as though Bandai Namco is pressuring 200 of its 1,300 employees in Japan to voluntarily resign in what is being called a short-sighted move to boost profits. According to a recent Bloomberg report, the Japanese game developer is skirting strict labor laws in Japan by removing all work responsibilities from 200 of its employees. Allegedly, nearly 100 of those staff being pressured into resignation have already left the company. Along with the layoffs, Bandai Namco has apparently cancelled three new games that were in development, namely, new Dragon Ball, One Piece, and Naruto games.

This shift at Bandai Namco comes in spite of a booming Japanese game industry, which will reportedly grow by 6.66% annually until 2029. Game Developer attributes Bandai Namco's coerced "voluntary" layoffs to the losses generated by the consistently underwhelming performance of the company's online division, which supposedly generated a net loss of an equivalent to $51.35 million in the last fiscal year. If our recent reporting is any indication, there seems to be a shift in the overall gaming market, in which younger audiences predominantly seem to prefer multiplayer (specifically PvP) games. Second to PvP is single-player gaming, which was consistently the preferred game type for more than 30% of gamers, regardless of age groups. This latter niche is seemingly where Bandai Namco's strengths and audience seem to lie, along with many of its other Japanese game studio competitors, like From Software, Nintendo, and Capcom.

Good Games Group Launches To Fill Humble Games Void

There was a bit of upheaval in the indie gaming space this July, when game publisher, Humble Games, effectively shuttered its doors due to budgeting concerns at its parent company, Ziff Davis. Back then, the entire staff was laid off when the publisher shuttered its doors. Now, the former Humble Games general manager, Alan Patmore, and ex-global publishing VP, Mark Nash, have come together to form Good Games Group—a game publishing group with more or less the same set of values and goals as Humble Games, but without the corporate oversight.

The new team's first order of business is helping Humble Games support indie titles previously launched under the Humble Games—a task that was apparently given over to a third-party game publisher after the 36-person crew of Humble Games was laid off earlier this year. Given that Good Games Group's first step involves Humble Games and projects that would previously have been worked on by the same team, it seems likely that the same developers that published games via Humble Games will continue to work with Good Games Group.

Epic Games' Anti-Trust Lawsuit Punishes Google With Open Android App Ecosystem

Following Epic Games's recent victory over Apple, which effectively forced the iPhone maker to allow third-party apps on iOS in the EU, the game developer and distributor has won a similar case against Google, except in the US, this time. The ruling places several restrictions on what Google can and can't do when it comes to the Android operating system and how it positions its own apps and services on Android phones, including prohibiting Google from paying device manufacturers to include its Play software on their devices and forcing developers to use Google's payment platform.

The ruling (PDF) and its consequent restrictions will start on November 1, 2024, will last three years, and Google isn't particularly happy about the mandated changes, having already confirmed that it will appeal the decision, citing security concerns and arguing that the order would negatively affect developers: "these changes would put consumers' privacy and security at risk, make it harder for developers to promote their apps, and reduce competition on devices."

Starbreeze Appointments Interim CEO, Following Dismissal of Tobias Sjögren

The Board of Directors of Starbreeze has appointed the current board member Juergen Goeldner as interim CEO of Starbreeze, taking office with immediate effect. A recruitment process for a permanent CEO has been initiated. Juergen Goeldner has spent 40 years in the gaming industry and has had several executive positions. His last executive position was as CEO of Focus Home Interactive. Juergen Goeldner has been a board member of Starbreeze since 2023. "The company has a clear strategy centered around creating attractive games on our own and licensed IPs. The board's consolidated assessment is that the execution of strategy needs a different leadership. Juergen Goeldner has been part of the board since 2023 and, with over 40 years of industry experience, is a strong interim solution," says Torgny Hellström, Chairman of Starbreeze.

Tobias will be available to Starbreeze for a smooth transition. "On behalf of the board of directors, I would like to thank Tobias Sjögren for his achievements during the past three years. Tobias took over the helm of Starbreeze in a challenging phase of its journey and we wish him well in his future endeavors," Torgny Hellström continues. "Starbreeze has a strong history of developing and publishing games globally. After launching Payday 3, the company is well-positioned to leverage the strengths of the organization to monetize and develop the IP portfolio. I am looking forward to assuming an operative position and, together with the management, ensure the execution of this strategy," says Juergen Goeldner, interim CEO of Starbreeze. Juergen's role as a board member and the nomination to chairman is not affected by this appointment.

CNET Demoted to Untrusted Sources by Wikipedia Editors Due to AI-Generated Content

Once trusted as the staple of technology journalism, the website CNET has been publically demoted to Untrusted Sources on Wikipedia. CNET has faced public criticism since late 2022 for publishing AI-generated articles without disclosing humans did not write them. This practice has culminated in CNET being demoted from Trusted to Untrusted Sources on Wikipedia, following extensive debates between Wikipedia editors. CNET's reputation first declined in 2020 when it was acquired by publisher Red Ventures, who appeared to prioritize advertising and SEO traffic over editorial standards. However, the AI content scandal accelerated CNET's fall from grace. After discovering the AI-written articles, Wikipedia editors argued that CNET should be removed entirely as a reliable source, citing Red Ventures' pattern of misinformation.

One editor called for targeting Red Ventures as "a spam network." AI-generated content poses familiar challenges to spam bots - machine-created text that is frequently low quality or inaccurate. However, CNET claims it has stopped publishing AI content. This controversy highlights rising concerns about AI-generated text online. Using AI-generated stories might seem interesting as it lowers the publishing time; however, these stories usually rank low in the Google search index, as the engine detects and penalizes AI-generated content probably because Google's AI detection algorithms used the same training datasets as models used to write the text. Lawsuits like The New York Times v. OpenAI also allege AIs must scrape vast amounts of text without permission. As AI capabilities advance, maintaining information quality on the web will require increased diligence. But demoting once-reputable sites like CNET as trusted sources when they disregard ethics and quality control helps set a necessary precedent. Below, you can see the Wikipedia table about CNET.

Remedy Entertainment Acquires Full Rights to the Control Franchise from 505 Games

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.

Publisher Secured for "Twinsen's Little Big Adventure" Remake

Developer 2:12 experienced a grim summertime last year—their "Twinsen's Little Big Adventure" reboot was canned due to lack of publisher interest, and members of the team were—unfortunately—let go. CEO Ben Limare outlined a Plan B that pivoted on 2:12's ongoing remaster projects: "(we will) channel our focus and energy into the remastered version of Twinsen's Little Big Adventure (TLBA Remastered). We will explore whether we can reincorporate the reboot's ideas into the remaster, but that's a conversation for another time." Securing a publishing deal for said remaster was a key goal, and this seems to have been achieved according to a pre-Christmas 2023 announcement.

Limare shared the good news, although he stopped short of naming the game's new financier: "after months of hard work behind the scenes, we are thrilled to share a great piece of news: we have a publisher! Twinsen is (really) back! Our first collaboration will be the remake of Twinsen's Little Big Adventure Classic...yes, you read that right: a remake!" 2:12 released a late December update that explained the scope of this slightly rejigged remake. Read on below.

Epic First Run launches today, and introducing the Now On Epic program

Introducing Epic First Run, our opt-in exclusivity program for third-party developers and publishers on the Epic Games Store. Registration is open through our self-publishing flow in the Epic Developer portal. Additionally, we are kicking off Now On Epic: a new back catalog incentive program for developers and publishers to bring their previously released products to the Epic Games Store. Now On Epic gives participants the opportunity to boost their net revenue from user spending on eligible products from 88% to 100% in their first six months on the store on all payments processed by Epic Games. After this initial six-month run, participating titles will continue to benefit from Epic's industry-leading 88% / 12% revenue split.

The Epic Games Store is home to a global audience with over 230 million players and 68 million monthly active users. Releasing back-catalog content on the Epic Games Store helps reach new, incremental audiences and ensures that the content that our players are looking for can be consistently discovered. Participants can leverage publisher and franchise sale opportunities to maximize this unique opportunity during their participating titles' first six months on the Epic Games Store.

NetEase Not Taking Blizzard to Court, One Man Seeking $43.5 Million Settlement

According to a recent news article released by Chinese news group Sina Technology, NetEase has filed a lawsuit against its former publishing partner Blizzard Entertainment, to the tune of (around) $43.5 Million. The Chinese Internet technology company is seeking compensation, in the form of a very large refund, following Blizzard's total exit from the nation's online gaming sector - its server infrastructure in China was shut down in January of this year. The closing of Blizzard-related services represented a very abrupt end to a 14-year long relationship between the two online gaming specialists - press coverage at the time presented a tense situation involving many major disagreements - the partnership was broken because of unfavorable terms on Blizzard's part.

NetEase posits that it had to compensate its customer base through refunds from its own reserves, after the sudden shutdown of Blizzard's hugely popular MMO - World of Warcraft, and other online multiplayer game series including Overwatch, Hearthstone, Diablo and Starcraft. A significant chunk of the $43.5 million settlement is said to cover the company's cost in refunding part of its customer base - somewhere in the range of 1.12 million players - for discontinued games and services. NetEase is also reported to be seeking damages for broken license agreements, unsold merchandise inventory and the loss of access to future Blizzard intellectual properties.

Update Apr 25th: According to an article from PC Gamer, published today, NetEase is not taking Blizzard to court. It turns out that a serial litigator, Yang Jun, has included NetEase as an appellant in his filed legal documents - under another company name, The9, an apparently defunct former licensing partner. PC Gamer has been informed that Yang Jun has sued NetEase in the past, and that his latest batch of legal documents have been amended to reflect that he is the lone party in demanding a financial settlement from Blizzard.

Cyberpunk 2077 Experiences Sales Boost, CD Projekt Rakes in Almost $222 Million in Revenue

CD Projekt has revealed that 2022 was its second-best year in terms of financial results - it cites an uptick in sales of action role-playing shooter Cyberpunk 2077 as the main reason behind the nice boost to its earnings - around $222 million in revenue, leading to about $80 million in net profit. The Cyberpunk intellectual property has expanded beyond the scope of the video games format and onto the small screen - evidently a combination of the Netflix anime series adaptation and continued efforts into polishing and expanding the game has spread a positive word of mouth. The company states: "In 2022 CD PROJEKT RED carried out intensive work on Cyberpunk 2077, which resulted in successive updates and the next-gen console edition of the game. An important event was the well-received Netflix premiere of Cyberpunk: Edgerunners. It attracted many new players to the game, and convinced many others to revisit Night City."

Adam Kiciński, CEO of CD PROJEKT was buoyed by these results and set expectations for continuations in both fields in the future: "The popularity of the series and the positive reception of the update, released a week before the premiere, had a notable effect on Cyberpunk sales and general sentiment around the game, as evidenced by gamers' reviews. This is a clear sign that deeper involvement in our franchises and expanding their reach is the right way to go. Another important event supporting the Cyberpunk franchise will be the release of Phantom Liberty - a large expansion scheduled for this year."

Atari is Acquiring Nightdive Studios

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."
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