The Industry Checkpoint - Issue #10

Highlights of the Week

• Valve has confirmed that the withdrawal of support for Steam transactions by one of PayPal’s acquiring banks is due to content on Steam, related to what was “previously commented on surrounding Mastercard”. In this case, one of those banks caused PayPal to be cut off from Steam for a number of currencies. Valve is currently evaluating adding additional payment methods on Steam for customers affected by this issue. Rock Paper Shotgun

• Krafton has filed a legal response, answering the lawsuit initiated by the former leadership of Unknown Worlds. In the response, Krafton alleged the “absence” of founders Charlie Cleveland and Max McGuire impacted the development team and reasserted the case for the launch delay. The development lead for Subnautica 2 had indicated the “"first [early access period] and second EA (planned for December 2025) would only be 'about 12% of our intended 1.0 scope'“. GamesIndustry.biz

• EA has announced that Battlefield 6’s open beta is the biggest Battlefield open beta ever. The title amassed a peak of 521,079 players on Steam alone on its first beta test weekend. Eurogamer

Studio News

• Starbreeze Studios has appointed Jonas Skantz (ex-EA) as general manager of the Payday franchise. Starbreeze recently agreed to fully acquire the publishing rights for Playday from Plaion back in May. Game Developer

• Game consultancy firm, Vivrato, has added nine gaming industry veterans to its team of advisors. The new additions are Connie Brammeier (Disney), Bruce Grove (Mythical Games), Stefan Lampinen (Game Advisor), Jon Lander (Square Corners Consulting), Tracey McGarrigan (Ansible), Douglas Morin (Devolver Digital), Don Sechler (Blumhouse Games), Mark Stanley (Syndicate of Play), and Markus Windelen (Versility Ventures). GamesIndustry.biz

• IGN Entertainment senior vice president and publisher John Davison has announced he will depart IGN on August 29 to “embark on his next adventure”. GamesIndustry.biz

• According to Dragon Age veteran Mark Darrah in an interview by Youtuber MrMattyPlays, a trilogy remaster of the first three Dragon Age games was pitched by BioWare to EA but the publisher declined the project. Eurogamer

• Tron: Catalyst developer Bithell Games has laid off most full-time staff. In a statement, the studio said that it was “unable to secure a new larger-scale project” to follow Tron: Catalyst. Ongoing support for existing titles will be unaffected. Rock Paper Shotgun

Spotlight: Company Expansions

• AI game tech developer Felicity Games has announced it is expanding into Singapore. The company is focused on acquisitions and operations in Southeast Asia and hopes to acquire IPs with a focus on product innovation and cross-border partnerships. GamesIndustry.biz

• NCSoft (Lineage, Aion, Blade & Soul) has established a new mobile division to deliver “global portfolio diversification”. The company said the new mobile division will be overseen by Anel Ceman (ex-Triple Dot) and will be focused on extending its “proven AI and data capabilities into the mobile casual gaming space”. Game Developer

• Minecraft console developer 4J Studios has opened a new studio in Edinburgh. The developer is working on a competing voxel-based sandbox game called Reforj. Video Games Chronicle

• Steel City Interactive has opened its second UK studio to build upon the success of boxing franchise Undisputed. The title has gained 2 million players since launching on console and PC in October 2024. Game Developer

Business News

Startups and Shutdowns

• Instinct3 has launched Sidekick Publishing, a new full-service publisher for indie and AA studios. The publisher’s first confirmed game is Pixelsplit’s zombie roguelike Deadly Days: Roadtrip, which will be showcased at Gamescom and released later this year. GamesIndustry.biz

M&A

• Generation Media has acquired Portal Studio, a creative agency that specializes in “brand storytelling, digital content, and design”. The acquisition will see both entities continuing to operate under their existing names, with Portal’s services strengthening Generation Media’s “in-house” communication strategy capabilities. GamesIndustry.biz

• Blackbird Interactive has reacquired the full intellectual property rights of Hardspace: Shipbreaker. The studio has shared that there are “multiple Hardspace projects” currently in development. Game Developer

Investments and Partnerships

• Qloud Games has raised $5M in a seed funding round led by Bitkraft Ventures and GFR Fund. The developer will use the investment to support its upcoming cozy MMO Loftia. GamesIndustry.biz

• Studio Atelico has raised $5M in a seed investment round to support the team’s on-device AI engine for video games. The toolkit helps “bring AI-powered experiences to life without massive budgets or custom infrastructure.” GamesIndustry.biz

• Neon Machine has raised $19.5M in two funding rounds for its Web3 shooter game Shrapnel. The most recent round was led by Gala Games with participation from existing investors Griffon Gaming Partners and Polychain Capital. Shrapnel’s closed access testing will be starting later in 2025 with an open access available in 2026. GamesBeat

• Appcharge has raised $58M for its direct-to-consumer platform for mobile game publishers. IVP led the round, with participation from Playrix, as well as existing investors. GamesBeat

• Indie studio Fateless has raised $14M in funding for its upcoming RPG Godforge. The cross-platform RPG is due to release in Q1 2026. GamesIndustry.biz

• Plan A Games has announced a new venture to provide growth capital to developers of mobile, free-to-play video games. The funding model provides game developers access to user acquisition (UA) capital to quickly market their games without sacrificing publisher independence. GamesBeat

• Silver Lining Interactive has launched a new initiative, called the Silver Bullet Programme, to “support and highlight independent game developers”. The program offers indie developers up to $100,000 in development funding, tailored and collaborative publishing support, marketing, QA, and porting assistance. GamesIndustry.biz

Market Insights

• A new report by Playsafe ID claims that 80% of players across both the UK and the US have experienced cheating in online games. The survey of over 2000 gamers across both countries also found that 42% of players had quit a game because of cheaters and 55% have reduced or stopped spending money in games altogether due to cheating. GamesIndustry.biz

• EA’s Anti-Cheat team has revealed that Battlefield 6’s anti-cheat system has blocked over 300,000 attempted cheat efforts and reviewed 100K+ potential cheaters. Eurogamer

• In a report by Newzoo and Tebex, the West games market is seeing slowing “player growth” across North America and Europe and recommended studios “shift from acquiring new players to maximizing value from existing ones.” GamesIndustry.biz

• Dating simulation game Date Everything has sold 500,000 copies. Steam

Spotlight: Quarterly Recaps

• Square Enix has reported declines in net sales and profit compared to the same fiscal period last year. Digital Entertaiment had a 25% decline in revenue, due to new titles generated lower than expected sales. GamesIndustry.biz

• Remedy has published its financial results for the first half of 2025 and its second quarter, reporting a 63% increase in revenue following rises in game sales and royalties. “Commercially, we were unsatisfied”, Remedy says FBC: Firebreak underperformed on Steam but they believe they “have a solid game to build on” and are looking ahead to a large update in September to engage with the community and expand the game. GamesIndustry.biz

• Bandai Namco boasts "record-high" results for Q1 2026, with overall net sales up 7.1%, driven mostly by a massive sales boost to its Mobile Suit Gundam IP. GamesIndustry.biz

• Sega Sammy’s Q1 net sales declined 22.7%, however the firm noted that despite “few new titles” in its portfolio the overall net sales “exceeded expectation”. GamesIndustry.biz

• Netmarble had strong Q2 profits according to its latest financial report, with 60% of the company’s total revenue coming from its RPG and MMORPG games. MMORPG.com

• Nexon posted "better-than-expected" Q2 2025-26 results despite revenue, operating income, and net income declines YoY. The Finals exceeded expectations due to a “well received” June/Season 7 update and Arc Raiders is continuing to build player attention. GamesIndustry.biz

Tech Innovations

• Xsolla has launched an SDK that enables direct-to-consumer monetization for Unity. The SDK allows developers to integrate payments, in-game purchase, and create custom storefronts with the tie-in from closed platforms. Game Developer

• Tech studio Hidden Door has launched a social roleplaying platform with AI. On the platform, anyone can become a main character within a fictional universe, creating a way for players/fans to interact with their favorite intellectual properties. GamesBeat

Government in Games

• Epic Games Store and Fortnite are returning to iOS devices in Australia, following an Australian court found that “Apple and Google abuse their control over app distribution and in-app payments to limit competition”. GamesIndustry.biz

• STJV union members at Microsoft’s Arkane studios in France has joined the Palestinian-led Boycott, Divestment, Sanctions (BDS) movement. They call for Microsoft to end its support for an Israeli regime that a UN Special Committee says is waging war on Gaza in a way that is “consistent with the characteristics of genocide”. In an open letter, STJV union workers are demanding the Microsoft disclose all ties to the Israeli military and conduct a “transparent, independent, and public audit” of its technologies, contracts, services, and investments to ensure they do not violate the United Nations Guiding Principles on Business and Human Rights, the Geneva Conventions, and Microsoft’s own Human Rights statement. Game Developer

• Wuchang: Fallen Feathers has received an update that has made several bosses with historical context have been made “unkillable” to appease Chinese netizens (and/or government entities). These bosses now fall down in exhaustion and remain in the boss area. Additionally, enemies associated with the Ming dynasty are no longer hostile, dramatically decreasing the difficulty when traversing through certain regions. Rock Paper Shotgun

See you next week industry watchers,

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