Wednesday - July 31, 2024
TODAY: Xbox revenue hard & soft, SAG-AFTRA strike, and the revival of an almost dead studio.
Daily Digest
- Xbox's Hardware Revenue Down 42%. Content and service revenue up 61%, gaming revenue up 44% (The Gamer).
- JR's Thoughts: A decline in hardware sales for Xbox is to be expected. Xbox's hard pivot towards Games Pass has signaled an intention for it to be a platform in software far more than in hardware. Keep a close eye on Xbox's hardware sales going forward - the next generation could be a major departure from the traditional model.
- SAG-AFTRA Calls Strike Against Major Video Game Companies After Nearly 2 Years Of Contract Talks (Deadline).
- JR's Thoughts: This is a big deal. The 10 studios affected by the shutdown cover a large portion of the AAA games industry. This could result in major delays on a lot of games from a lot of studios. And that's a good thing! Game delays suck, but poor handling of existential questions like "how will AI replace game talent" sucks even more. Let's hope for a fast and satisfying resolution for both sides of the negotiation table.
- How the team behind Reus 2 nurtured a studio and IP back to life (Game Developer).
- JR's Thoughts: Everyone loves a comeback story! I've never played the original Reus (released in 2013), but as of 2018 it had sold 1 million copies, making it a resounding success. Despite this success, developer Abbey Games experienced huge staff losses (upwards of 75%!) and ran into a range of technical limitations that made bringing Reus 2 to fruition a nearly impossible task. The game released on May 28, 2024 to rave reviews - a success story unbefitting of an industry rife with sudden studio closures and cancelled projects.
That's all for today! If you have a topic or news item you want featured on the newsletter - hit me up at jeremy@gamesbeat.news.
