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Episode 206: Epic Fail (News Show)
With Epic laying off 1,000 people, the game industry job market has gone from “extremely chilly” to “nearing absolute zero.” Also: a recap of GDC’s challenged year, Circana Report on U.S spending for February 2026, some interesting new investments, NetEase divestments, and a heckin’ FAFO. You can support Virtual Economy’s growth via our Ko-Fi and also purchase Virtual Economy merchandise! TIME STAMPS [00:00:50] - GDC 2026 Recap [00:25:51] - Circana Report on US Video Game Spending for February 2026 [00:35:02] - Nintendo Sues US Government Over Tariffs [00:36:55] - Pokemon Company v. US Government [00:38:24] - Update on the Intrepid Studios Implosion [00:45:02] - Investment Interlude [01:05:45] - Quick Hits [01:12:42] - Labor Report [01:39:27] - FAFO Award SOURCES Nintendo Suing U.S. Government Over Tariffs | Aftermath Pokémon rebukes White House's use of its IP in a social media post | NBC News MMO Ashes of Creation spirals into a legal dumpster fire, as investor claims creative director Steven Sharif siphoned millions away from the company while it was drowning in debt | PC Gamer CEO Behind Kickstarter MMO That Ran Out Of Money Breaks His Silence And Claims First Legal Victory | Kotaku Krafton loses lawsuit, is ordered to reinstate ousted Unknown Worlds CEO | Game Developer Unknown Worlds co-founders' lawyers accuse Krafton of "intentionally leaking" Subnautica 2 release date | GamesIndustry INVESTMENT INTERLUDE Netflix Declines to Raise Offer for Warner Bros. | Netflix Netflix boss says Paramount acquisition of Warner Bros will result in "cuts in excess of $16 billion" within "18 months or so" | Games Industry Warner Bros Montréal reportedly hit with staff cuts | GamesIndustry Pacific Drive developer Ironwood Studios raises $4 million in seed funding | Game Developer Good Games Group Launches New Publishing Label Balor Games, Following Acquisition of Humble Games and Firestoke Catalogs | Games Press Velan Studios expands into Canada to build 'breakthrough games' | Game Developer NCsoft acquires 70% stake in mobile developer JustPlay | GamesIndustry BEHAVIOUR INTERACTIVE PARTNERS WITH THE FUN PIMPS, CREATORS OF 7 DAYS TO DIE | Behaviour Interactive Saudi Crown Prince Mohammed Bin Salman’s EGDC firm has acquired 5% of Capcom | VGC Savvy Games Group to acquire Moonton Games for $6 billion | Game Developer Evo is dead': Major fighting game tournament is now wholly owned by Saudi megaproject Qiddiya, promises 'traditions, values, and identity will remain unchanged' | PC Gamer Yet another NetEase studio is going independent | Game Developer Nagoshi's Gang of Dragon May Never Come Out After NetEase Cut Funding When It Realized an Extra $44M Was Needed to Finish the Game Amazon abandons upcoming racing game from former Forza devs, as its departure from triple-A publishing continues | Eurogamer LABOR REPORT Today’s layoffs | Epic Games Ubisoft Toronto lays off 40 employees, Splinter Cell remake still in development | Mobile Syrup Ubisoft ends game development at Red Storm and lays off 105 workers | Game Developer skate.’s Next Chapter - An Update from Full Circle | Full Circle (EA) Battlefield developers laid off by EA months after Battlefield 6 'shatters records' | Game Developer Riot Games confirms layoffs within publishing division | Game Developer Riot Games lays off roughly 80 employees from 2XKO team | Game Developer Report: NetEase is cutting jobs at internal studio Spliced Inc | Game Developer Den of Wolves studio 10 Chambers announces 'significant restructuring' and layoffs, 'including several of the studio’s co-founders' | PC Gamer Highguard Studio Wildlight Lays Off Most Staff | Alex Graner on LinkedIn Highguard In Trouble After Most Of The Studio Laid Off Just Weeks After Launch | Kotaku Tencent's TiMi Studio Group reportedly funded Highguard dev Wildlight Entertainment | GamesIndustry via GameFile Halfbrick Studios is cutting jobs in Australia | Game Developer Killing Floor dev Tripwire Interactive lays off 23 employees | Games industry G.I. Joe Snake Eyes game not cancelled following reported Atomic Arcade studio closure, but its ultimate fate remains unclear | Eurogamer XCOM designer Jake Solomon announces surprise closure of his studio alongside a first look at its canceled life sim, 'the game we poured our hearts into' | PC Gamer Build a Rocket Boy confirms more layoffs amid further claims of "organized espionage and corporate sabotage" | Games Industry Until Dawn remake dev Ballistic Moon has closed | GamesIndustry
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