People fighting back against their corporate overlords, more juicy Krafton gossip, and (but of course) layoffs galore. The video game industry remains depressingly predictable in some areas, but there are glimmers of hope if you look hard enough.
This week, union members at ZeniMax Online Studios stood firm against their parent company Microsoft in the face of yet another round of layoffs, lambasting the Xbox maker for upending their lives and failing to support the very people who helped the company earn billions in revenue. Across the pond, staff at Secret 6 Madrid told us how they’re facing a studio closure in solidarity with each other—despite allegedly being “left to die” by owner Testronic.
It’s heartening to see people calling out the flagrant mismanagement that has led to so many debilitating layoffs—but the fact remains: more are undoubtedly coming.
Just this week, Virtuos laid off 7 percent of its global workforce shortly after their teams received massive plaudits for wrangling Oblivion Remastered into being with poise and panache. For the second week running, Microsoft remained tight-lipped about the true scale of its gaming layoffs, but new rumblings indicate employees are being replaced by AI tools at the company’s mobile studio, King.
Related:Kim Swift, former Portal lead developer, joins NEARstudios as COO
As always, we’ll dig into all of that and more below, but on the off chance you happen to be reading this with a glass of your choicest beverage in hand, how about a quick toast to the developers making video games around the world? May they one day receive all the plaudits, respect, and financial rewards they undoubtedly deserve.
Steam Bends to Payment Processors on Porn Games
via 404 Media // Steam has updated its guidelines to prohibit developers from publishing titles that “may violate the rules and standards” outlined by payment processors and related card networks and banks. The platform said it’s a tweak that will largely impact “certain kinds of adult content.” The change is there for all to see on the Steamworks website, but 404 Media has published a robust breakdown of the situation by leaning on data from SteamDB to look at how the change is already impacting the popular PC storefront.
‘Krafton decided to go nuclear:’ Unknown Worlds founders claim Subnautica 2 is being held hostage in lawsuit
via Game Developer // Krafton remains at loggerheads with the ousted founders of Subnautica developer Unknown Worlds. Last week, the former leadership team claimed Krafton delayed Subnautica 2 and kicked them to the curb to avoid paying a $250M earnout. All three co-founders subsequently announced plans to file a lawsuit against the publisher. Well, they made good on that promise and in a public (and slightly redacted) version of the lawsuit have alleged that Krafton went ‘nuclear’ in its attempts to seize control of Unknown Worlds and delay Subnautica 2. Our writeup includes all of wildest allegations—which Krafton has previously refuted by claiming the Unknown Worlds execs were fired for abandoning their duties. Refill your popcorn bucket because this very public spat is only just getting started.
Related:Megabonk dev withdraws from The Game Awards over ‘unqualified’ nomination
‘They tried to choke us from the start:’ Secret 6 Madrid workers slam owner Testronic ahead of impending closure
via Game Developer // Workers at Secret 6 Madrid have spoken out against parent company Testronic in a wide ranging conversation with Game Developer ahead of the office’s purported closure. During our chat, multiple employees claimed the art outsourcing studio was sabotaged by Testronic, which is accused of neglecting to provide contract work to the team and preventing them from advertising their services to clients directly in order to force their closure. The bigger picture, explained those who spoke with us, is that Testronic wants to focus on Secret 6’s other office in Manila, where working conditions are “much more precarious and wages much lower.” Testronic has yet to respond to our repeated requests for comment. Meanwhile, Secret 6 Madrid workers have confirmed they will strike if the company doesn’t meet their demands for fair severance.
Related:GDC survey indicates over half of U.S. game workers want to join a union
‘Our lives were upended:’ ZeniMax union workers respond to Microsoft layoffs
via Game Developer // Unionized workers at ZeniMax Online Studios have lambasted parent company Microsoft over its decision to make a significant (but unknown) number of workers redundant across Xbox Game Studios. It’s the fourth major layoff round the company has wrought since merging with Activision Blizzard for almost $70 billion, and workers at The Elder Scrolls Online maker said they feel their “future has been stolen” by their parent company. Although they confirmed nobody in the union has been laid off yet—largely because it remains in negotiations with Microsoft over the cuts—it’s possible that some members will be impacted. “Where Microsoft has failed to support the talented craftspeople who have generated billions in revenue, our union has stepped up to provide clarity and support,” read a statement published on social media. Microsoft has yet to comment on the scale of the cuts within its video game division specifically.
Laid off King staff set to be replaced by the AI tools they helped build, say sources
via mobilegamer.biz // Speaking of those Microsoft layoffs… multiple sources have told mobilegamer.biz that Candy Crush developer King, which is under the ownership of the U.S. tech giant, is jettisoning a number of employees to replace them with the very AI tools they created and trained. Bloomberg previously reported that 200 people would be made redundant at King, and multiple sources now claim morale is in the “gutter” as the company prepares to supplant its human workforce with AI automatons. “The fact AI tools are replacing people is absolutely disgusting but it’s all about efficiency and profits even though the company is doing great overall,” said one source. It’s a sentiment we suspect will sound worryingly familiar to a lot of developers.
Summer Games Done Quick raises over $2.4 million for Doctors Without Borders
via SGDQ on Bluesky // In case you needed a little cheering up, here’s a reminder of how video games and the wider industry can still be an immense force for good. Summer Games Done Quick 2025 finished earlier this week after raising a colossal $2,436,614 for humanitarian organization Doctors Without Borders. The annual speed running event continues to demonstrate that there are plenty of people with heart and empathy within the video game industry. Oh, I wonder how the world might be if a few more of them were sitting in C-suites. Congrats and thank you to everyone involved.
Sega, Netflix and others will let Roblox creators monetize their major franchises
via Game Developer // UCG platform and child labor pioneer, Roblox, has rolled out a new licensing platform to let creators build and monetize experiences based on major franchises like Stranger Things, Like a Dragon, Squid Game, Saw, Now You See Me, Divergent, and Twilight. Platform owner Roblox Corp has partnered with a number of IP holders (with more to come, apparently) so users can license their properties when creating their own Roblox jaunts. Creators will only be able to license an IP if they meet the demands of their respective owners. Sega, for instance, wants to know creators are capable of pulling in over 1,000 daily active users before granting them permission to use the Like a Dragon license. Netflix, meanwhile, has opened Squid Game and Stranger Things to even the smallest creator—although their revenue share offering isn’t quite as generous as their peers. More on that in the full story.
Virtuos axes 7 percent of its global workforce to adapt for the “future of game development”
via Virtuos // It’s important to quote companies directly when they announce hundreds of layoffs to underline just how vacuous their statements have become. Yesterday, global game service provider Virtuos said it must make hundreds of people redundant so it can (and here comes the punchline) “strengthen” its offering in “high-value co-development.” Virtuos currently employs over 4,200 people according to its website, so you can expect a hefty chunk of its workforce to be punted out the door. The company has confirmed the layoffs will impact about 200 roles in Asia and 70 in Europe—but stated that number includes “fewer than 10 in France” where the core team working on acclaimed title Oblivion Remastered is located. Are people meant to count that as a win?