Tuesday, 8 September 2026
Tuesday, 8 September 2026
- In brief
- 1A new phone chip draws a quarter of each picture and lets AI invent the rest. The first phone using it went on sale in China today.
- 2Don't Nod may run out of money in January
- 3Sega explains why it killed its billion-dollar online game
- 4China's games market passes $50bn for the first time
- 5Memory prices keep climbing, and phones are next
- 6Tencent calls always-online games its holy grail
- 7CD Projekt puts its old games' money into new ones
- 8Capcom turns to games it has not touched for decades
- 9Peak's studio starts funding other people's games
- 10Stronghold's maker becomes a strategy publisher
- 11Gamescom apologises to developers robbed at its show
- 12Nintendo runs two showcases in two days
- 13Forza Horizon 6 still due on PlayStation this year
- TruthThe truth, across the day
8 Sept · Gaming · In brief
Gaming · Tuesday, 8 September 2026
Gaming, in brief
13 stories · 15 sources
Swipe up for the day in brief ↑Scroll down for the day in brief ↓
What is moving · 1 of 4
Heat and battery limits
a phone cannot shed heat like a console and runs off a battery
What is moving · 2 of 4
Demand for PC-grade looks on phones
Arm says more mobile games are asking for ray tracing, the lighting method PCs use
What is moving · 3 of 4
Nvidia's lead in AI rendering
DLSS 5 set the method; Arm copies the idea and rejects the closed design
What is moving · 4 of 4
Memory costs
three firms make about 90% of the world's memory and AI buyers outbid phone makers
13 stories
- 1A new phone chip draws a quarter of each picture and lets AI invent the rest. The first phone using it went on sale in China today.
- 2Don't Nod may run out of money in January
- 3Sega explains why it killed its billion-dollar online game
- 4China's games market passes $50bn for the first time
- 5Memory prices keep climbing, and phones are next
A new phone chip draws a quarter of each picture and lets AI invent the rest. The first phone using it went on sale in China today.
Swipe up for the story ↑Scroll down for the story ↓
The Xiaomi 18 Fold went on sale in mainland China today, the first phone carrying Arm's new Mali G2-Ultra NX graphics chip.
the picture moves four times as often while the chip draws far fewer real pixels
reaching out to memory is one of the biggest drains on a phone's battery
Who is involved
Arm
the British company that designs the chips inside most of the world's phones and licenses those designs out; it built the new graphics chip
Who is involved
Xiaomi
one of China's largest phone makers; its 18 Fold is the first device to ship with the chip, inside Xiaomi's own Xring O3 processor
Why it matters
Watch whether Where Winds Meet, Infinity Nikki and Arena Breakout: Infinite actually ship with it turned on; Arm says more games are coming but will not name them yet.
Who gains
Xiaomi
It gets the chip first.
Who gains
The 18 Fold is the only phone shipping with it today, and its Pad 9 Pro Max is being shown at 3.2K resolution and 120 frames a second.
Who gains
Arm
It sells one design to many phone makers, so years of graphics research are paid for by Xiaomi, Vivo, OnePlus and whoever licenses it next.
Nobody knows yet
How long Arm spent building this.
The Verge reports five years of development on the AI graphics work; Arm's Deyan Lazarov told GamesIndustry.biz the chip itself is two and a half years old. Neither says which clock is being read.
Nobody knows yet
Whether the four-times figure survives a real game.
Arm's number comes from its own demonstration, Neural Dawn, built with Sumo Digital, and half the gain is invented frames, which usually add a delay between a button press and the screen.
Good news
Arm put the AI networks behind its new phone graphics chip on GitHub and Hugging Face, where anyone can take them. A studio can retrain them on its own game, so the chip fills in pictures the way that game is meant to look.
The short version
That's the story in short.
The whole story has 13 more parts.
or swipe up for the next storyor scroll on for the next story ↓
The whole story, in 13 parts ↓
Part 1 of 13 · Who else is involved
Chris Bergey
Arm's executive vice president for edge AI, the part of the business covering phones, tablets and laptops; he made the battery-life claim
Part 1 of 13 · Who else is involved
Deyan Lazarov
a product manager in Arm's graphics team; he set out how the technology differs from Nvidia's
Part 2 of 13 · How it unfolded
Two and a half years ago
work begins on this particular chip, Arm's Deyan Lazarov says
After that
the method that cleans up lighting follows
Part 3 of 13
Arm is a British company that designs chips and sells the designs to other firms; it builds no phones of its own.
Part 3 of 13
Its previous graphics chip is used by Xiaomi, Vivo and OnePlus.
Part 4 of 13
The chip draws only a quarter of one picture for real and lets AI fill in the other three quarters; the picture after that is invented entirely.
Part 5 of 13
Arm claims up to four times the frame rate when its three AI methods run at once.
Part 6 of 13
Chris Bergey, who runs Arm's edge AI business, said a phone can now hold 1080p at 60 frames a second for three hours, where before it managed about 30 minutes.
Part 7 of 13
The whole phone draws no more than 2.5 watts doing it, with 1.5 watts going to the graphics chip.
Part 8 of 13
The reason any of this exists is heat.
Part 8 of 13
A phone cannot shed heat the way a console or a PC can, and it runs off a battery all the time.
Part 9 of 13
Arm published the AI networks openly on GitHub and Hugging Face, so a studio can retrain them on its own game.
Part 10 of 13
Deyan Lazarov of Arm's graphics team said Nvidia's rival DLSS 5 software is proprietary and closed, and would blow past a phone's power budget instantly.
Part 11 of 13
Only the upscaling arrives now.
Part 11 of 13
Invented frames are due in early 2027 and cleaned-up lighting after that.
Part 12 of 13
Three games are confirmed to use it: Where Winds Meet from NetEase, Infinity Nikki from Infold Games and Arena Breakout: Infinite from Tencent.
Part 13 of 13
Inventing frames usually adds a delay between a button press and what you see, a cost Nvidia, AMD and Intel all pay too.
2 sources
A new phone chip draws a quarter of each picture and lets AI invent the rest. The first phone using it went on sale in China today.
The full story
A new phone chip draws a quarter of each picture and lets AI invent the rest. The first phone using it went on sale in China today.
The Xiaomi 18 Fold went on sale in mainland China today, the first phone carrying Arm's new Mali G2-Ultra NX graphics chip.
Arm is a British company that designs chips and sells the designs to other firms; it builds no phones of its own.
The chip draws only a quarter of one picture for real and lets AI fill in the other three quarters; the picture after that is invented entirely.
Arm claims up to four times the frame rate when its three AI methods run at once.
Chris Bergey, who runs Arm's edge AI business, said a phone can now hold 1080p at 60 frames a second for three hours, where before it managed about 30 minutes.
The whole phone draws no more than 2.5 watts doing it, with 1.5 watts going to the graphics chip.
The reason any of this exists is heat. A phone cannot shed heat the way a console or a PC can, and it runs off a battery all the time.
Arm published the AI networks openly on GitHub and Hugging Face, so a studio can retrain them on its own game.
Deyan Lazarov of Arm's graphics team said Nvidia's rival DLSS 5 software is proprietary and closed, and would blow past a phone's power budget instantly.
Only the upscaling arrives now. Invented frames are due in early 2027 and cleaned-up lighting after that.
Three games are confirmed to use it: Where Winds Meet from NetEase, Infinity Nikki from Infold Games and Arena Breakout: Infinite from Tencent.
Inventing frames usually adds a delay between a button press and what you see, a cost Nvidia, AMD and Intel all pay too.
Why it matters. Watch whether Where Winds Meet, Infinity Nikki and Arena Breakout: Infinite actually ship with it turned on; Arm says more games are coming but will not name them yet.
Don't Nod may run out of money in January
Swipe up for the story ↑Scroll down for the story ↓
Don't Nod, the French studio behind Life is Strange, told investors it may not be able to keep operating past January 31, 2027 without new outside money.
Its cash fell from 15.4 million euros at the end of 2025 to 8 million by the end of July, and revenue dropped 56% year on year.
The board approved a plan on September 4 that folds the French operation into a single production line and could cut up to 90 jobs.
Two games, Aphelion and P14, could not raise funding.
Why it matters
Ninety jobs is most of a mid-sized studio. Don't Nod's own auditors gave a similar warning in June, after Tencent, its largest shareholder, refused a short-term cash injection.
How it works
Why Sega could not try live service in a small way
How it works
Some costs are paid in full before the first player arrives, so the same business is out of reach for Sega and routine for Tencent.
How it works · step 1 of 5
Some businesses charge their whole cost before the first customer
How it works · step 2 of 5
An always-online game needs servers, staff and updates from day one
How it works · step 3 of 5
That bill is the same whether ten people play or ten million
How it works · step 4 of 5
So there is no small version to test; you commit at full size or not at all
How it works · step 5 of 5
Whoever already carries the bill can add the next game almost free
The twist
Sega could afford to build the game.
The twist
What it could not afford was running a worldwide service for years afterwards, and that bill does not get smaller if fewer people show up.
Seen the same day
Sega's president said the investment and the operations would have had to grow enormously to match the service, so the company stopped rather than start small
Seen the same day
the same running cost is cheap for Tencent, because Honor of Kings, League of Legends and Valorant all sit on top of it
Seen the same day
Aggro Crab can publish because the marketing and the community it already built for its own games cover the cost of one more
Seen the same day
the studio is folding its French work into a single production line, because it can only afford to keep one of them staffed
The catch
It cuts the other way too.
The catch
A company already carrying the bill can add things cheaply, which is how a few very large firms end up owning a whole category and nobody new can get in.
The whole
Sega stopped, Don't Nod shrank and Tencent pressed on, and the same arithmetic produced three opposite decisions.
The whole
A player sees only the end of it: a game that never appears, or one that never ends.
What's really going on
Don't Nod's "transformation project" is the same kind of wording, and it means up to 90 people in France may lose their jobs.
Who pays
Up to 90 staff at Don't Nod in France
The board approved a restructuring on September 4 that folds the French operation into a single production line.
Nobody knows yet
Whether Don't Nod finds the money to carry on past January.
The company says there is material uncertainty beyond January 31, 2027, and that neither Aphelion nor the project it calls P14 met its funding criteria despite interest it did not name.
Nobody knows yet
How many people actually lose their jobs at Don't Nod.
Up to 90 positions in France are under consideration. The board approved the plan on September 4 and talks with staff representatives and the union have only just started.
1 source
Don't Nod may run out of money in January
The full story
Don't Nod may run out of money in January
Don't Nod, the French studio behind Life is Strange, told investors it may not be able to keep operating past January 31, 2027 without new outside money.
Why it matters. Ninety jobs is most of a mid-sized studio. Don't Nod's own auditors gave a similar warning in June, after Tencent, its largest shareholder, refused a short-term cash injection.
Sega explains why it killed its billion-dollar online game
Swipe up for the story ↑Scroll down for the story ↓
Sega cancelled Super Game earlier this year, and its president has now explained why.
Announced in 2021, it was meant to be an original online game sold worldwide, and Sega said it might spend close to $1 billion on it.
Shuji Utsumi, Sega's president, spoke to the Japanese business paper Nikkei.
The company believed it had the technology, he said, but found the investment and the daily running of the service would have to grow enormously.
He said Sega still thinks there is a business there.
Why it matters
Sega already lost money on one always-online game, Hyenas, cancelled in 2023, and Sony has pulled back from the same bet.
Why it matters
The company not backing out is Tencent, which is far larger.
How it works
Sega's president said the investment and the operations would have had to grow enormously to match the service, so the company stopped rather than start small
The idea, in story 2: Why Sega could not try live service in a small way →What's really going on
Sega called cancelling its billion-dollar online game a decision about risk, but what its president actually described is a size problem: the company would have had to grow enormously to run the service, and it could not.
Who pays
Studios that bet on always-online games without Tencent's size
Sega wrote off Super Game after years of work, and Highguard, reportedly backed by Tencent's own TiMi group, shut down.
Nobody knows yet
Whether Sega comes back to always-online games.
Shuji Utsumi said he still believes there is a business opportunity and that Sega will keep pursuing it, without naming a project, a budget or a date.
2 sources
Sega explains why it killed its billion-dollar online game
The full story
Sega explains why it killed its billion-dollar online game
Sega cancelled Super Game earlier this year, and its president has now explained why.
Why it matters. Sega already lost money on one always-online game, Hyenas, cancelled in 2023, and Sony has pulled back from the same bet.
China's games market passes $50bn for the first time
Swipe up for the story ↑Scroll down for the story ↓
China's games market grew 5.4% in 2025 to $51.8 billion, passing $50 billion for the first time, according to a new report from the research firm Niko Partners.
The firm expects $53.9 billion this year and $59.8 billion by 2030, with 769 million players.
Small, quick mini-games are the fastest-growing part: 80% of Chinese players use them, and they take almost a fifth of all mobile game spending.
The report also found 66% of players get around China's internet controls to reach games abroad, mostly through overseas servers, speed-up services and VPNs.
Why it matters
Growth of 2.9% a year over five years is slow for a market this size, so Chinese studios are competing for players who already play rather than for new ones.
1 source
China's games market passes $50bn for the first time
The full story
China's games market passes $50bn for the first time
China's games market grew 5.4% in 2025 to $51.8 billion, passing $50 billion for the first time, according to a new report from the research firm Niko Partners.
Why it matters. Growth of 2.9% a year over five years is slow for a market this size, so Chinese studios are competing for players who already play rather than for new ones.
Memory prices keep climbing, and phones are next
Swipe up for the story ↑Scroll down for the story ↓
Memory is the part of a phone or console that holds what it is working on, and its price has been rising for two years after decades of falling.
Three companies make about 90% of the world's supply: Samsung had 39% of the market in the second quarter of 2026, SK Hynix 26% and Micron 25%, according to the research firm Counterpoint.
AI data centres buy a stacked, faster version that is harder to make, and pay more for it.
Why it matters
The next iPhones are expected to cost more because of this, and console makers buy from the same three firms.
Why it matters
Arm's new chip cuts memory traffic by 70%, which is one way around a price nobody can argue with.
Who gains
Samsung, SK Hynix and Micron
The three of them make about 90% of the world's memory, and AI buyers pay more per chip than phone and console makers can.
Who pays
Phone and console buyers
Memory makers are selling capacity to AI customers first, and the next iPhones are expected to cost more because of it.
Nobody knows yet
When memory prices stop rising.
Micron's president said the industry has to build more factory capacity, and The Verge reports the fix is years away. No company in the story gave a date.
2 sources
Memory prices keep climbing, and phones are next
The full story
Memory prices keep climbing, and phones are next
Memory is the part of a phone or console that holds what it is working on, and its price has been rising for two years after decades of falling.
Why it matters. The next iPhones are expected to cost more because of this, and console makers buy from the same three firms.
Tencent calls always-online games its holy grail
Swipe up for the story ↑Scroll down for the story ↓
Tencent, the Chinese company whose games include Honor of Kings, League of Legends and Valorant, said it is still aiming at live service, meaning games that keep selling things to the same players for years rather than once.
Yong-yi Zhu, its vice president for operations, strategy and compliance, said those games build on themselves and give a studio steady income and a community.
He said this while other publishers retreat: Sony's live-service push went badly, and Highguard, reportedly funded by Tencent's own TiMi group, shut down.
Why it matters
Three of the biggest always-online games in the world already run on Tencent's money and staff, so keeping one more alive costs it far less than it would cost anyone else.
How it works
the same running cost is cheap for Tencent, because Honor of Kings, League of Legends and Valorant all sit on top of it
The idea, in story 2: Why Sega could not try live service in a small way →1 source
Tencent calls always-online games its holy grail
The full story
Tencent calls always-online games its holy grail
Tencent, the Chinese company whose games include Honor of Kings, League of Legends and Valorant, said it is still aiming at live service, meaning games that keep selling things to the same players for years rather than once.
Why it matters. Three of the biggest always-online games in the world already run on Tencent's money and staff, so keeping one more alive costs it far less than it would cost anyone else.
CD Projekt puts its old games' money into new ones
Swipe up for the story ↑Scroll down for the story ↓
CD Projekt, the Polish company behind The Witcher and Cyberpunk 2077, plans to put most of the cash its older games still bring in straight back into making more games, rather than paying it to shareholders.
Its chief financial officer, Piotr Nielubowicz, told Bloomberg the company is at a completely different stage than five years ago, when it bet its fortunes on a single title.
Spending on development is now a main consideration when the board decides what to pay out.
Why it matters
Running several projects at once is only possible because the back catalogue keeps selling. A studio with one finished game and no old ones has nothing to reinvest.
1 source
CD Projekt puts its old games' money into new ones
The full story
CD Projekt puts its old games' money into new ones
CD Projekt, the Polish company behind The Witcher and Cyberpunk 2077, plans to put most of the cash its older games still bring in straight back into making more games, rather than paying it to shareholders.
Why it matters. Running several projects at once is only possible because the back catalogue keeps selling. A studio with one finished game and no old ones has nothing to reinvest.
Capcom turns to games it has not touched for decades
Swipe up for the story ↑Scroll down for the story ↓
Onimusha: Way of the Sword, Capcom's first main game in that series since 2006, sold over a million copies on its release day.
In the press release announcing that figure, the Japanese publisher said it is focusing on re-activating series that have not had a new game recently.
It is already doing that with a new Okami and Mega Man: Dual Override.
Capcom named no others; Dino Crisis has had no new game since 2003, and there has been no new main Devil May Cry since 2019.
Why it matters
A revival starts with players who already know the name, so it needs less marketing than something new.
Who gains
Capcom
Onimusha sold more than a million copies on day one, and the company can now fund revivals out of a library it already owns instead of new ideas.
Nobody knows yet
Which of its old series Capcom will actually revive.
The press release says only that it is re-activating series without a recent game. Engadget's list of candidates, including Dino Crisis and Devil May Cry, is the writer's guess, not Capcom's plan.
1 source
Capcom turns to games it has not touched for decades
The full story
Capcom turns to games it has not touched for decades
Onimusha: Way of the Sword, Capcom's first main game in that series since 2006, sold over a million copies on its release day.
Why it matters. A revival starts with players who already know the name, so it needs less marketing than something new.
Peak's studio starts funding other people's games
Swipe up for the story ↑Scroll down for the story ↓
Aggro Crab, the studio behind Peak and Another Crab's Treasure, has started a publishing label to pay for other developers' games.
It will sign one or two a year, funding projects that need $500,000 or less and can be finished within two years, and has already taken on the platformer Rebounder and the horror game Subway Midnight.
Its terms do not require the money to be paid back in full, and it will not hold the final payment back until release day.
Peak has passed 20 million players since June 2025.
Why it matters
Publishers usually keep the last payment until launch, which is exactly when a small studio has least money. Removing that changes who can survive a delay.
How it works
Aggro Crab can publish because the marketing and the community it already built for its own games cover the cost of one more
The idea, in story 2: Why Sega could not try live service in a small way →Who pays
Developers whose games need more than half a million dollars
The new developer-run publishers cap their cheques: Aggro Crab funds projects of up to $500,000 that can be finished within two years.
Good news
Peak has passed 20 million players since it launched in June 2025. Its makers, Aggro Crab, are using that money to fund one or two other studios' games a year, on terms that do not require the money to be paid back in full.
2 sources
Peak's studio starts funding other people's games
The full story
Peak's studio starts funding other people's games
Aggro Crab, the studio behind Peak and Another Crab's Treasure, has started a publishing label to pay for other developers' games.
Why it matters. Publishers usually keep the last payment until launch, which is exactly when a small studio has least money. Removing that changes who can survive a delay.
Stronghold's maker becomes a strategy publisher
Swipe up for the story ↑Scroll down for the story ↓
Firefly, the British studio behind the castle-building series Stronghold, has launched a publishing label called Wuselfaktory, starting with Fool King from the first-time developer Loot Donkey.
Firefly is paying for the game and its marketing.
Studio head Nick Tannahill said the 50-person team has been self-publishing since 2010, so the marketing and localisation work already exists inside the company.
The move came at the suggestion of Devolver, which bought Firefly in late 2021 and has little experience in strategy games.
Why it matters
Two developer-run publishers opened within a week, both paid for by their own hit rather than by an outside investor.
Why it matters
That is what indie funding looks like when the outside money has gone.
Who gains
Devolver
It owns Firefly and told the studio to start publishing, so it reaches the strategy market without hiring a strategy team of its own.
2 sources
Stronghold's maker becomes a strategy publisher
The full story
Stronghold's maker becomes a strategy publisher
Firefly, the British studio behind the castle-building series Stronghold, has launched a publishing label called Wuselfaktory, starting with Fool King from the first-time developer Loot Donkey.
Why it matters. Two developer-run publishers opened within a week, both paid for by their own hit rather than by an outside investor.
Gamescom apologises to developers robbed at its show
Swipe up for the story ↑Scroll down for the story ↓
Gamescom, the German games trade show, apologised for how it responded when several independent developers had hardware stolen at this year's event.
Its first statement said that at an event of this size some people will always try to take advantage, and pointed exhibitors towards bookable stand security and insurance.
The organisers now say that criticism of that response was justified, and that a theft can destroy work that took years to build.
They are reviewing security for indie exhibitors and holding a roundtable with the shared booths.
Why it matters
Ryan Laley, who makes the game Mimic, had all his laptops stolen and called it a huge blow financially and mentally.
Why it matters
The organisers have still not said whether anyone will be compensated.
Who pays
Independent developers robbed at Gamescom
Ryan Laley, who makes Mimic, had all his laptops stolen and called it a huge blow financially and mentally. No compensation has been named.
Nobody knows yet
How many developers were robbed at Gamescom, and whether any are paid back.
GamesIndustry.biz asked the organisers for the number of reported incidents and about compensation, and they pointed back to their earlier statements.
Good news
Gamescom's organisers said the criticism of how they handled thefts from independent developers was justified, and that they should have said so from the first moment. They are reviewing security for indie exhibitors and holding a roundtable with the shared booths.
1 source
Gamescom apologises to developers robbed at its show
The full story
Gamescom apologises to developers robbed at its show
Gamescom, the German games trade show, apologised for how it responded when several independent developers had hardware stolen at this year's event.
Why it matters. Ryan Laley, who makes the game Mimic, had all his laptops stolen and called it a huge blow financially and mentally.
Nintendo runs two showcases in two days
Swipe up for the story ↑Scroll down for the story ↓
Nintendo is holding two video presentations this week.
The first, today, is a 30-minute show for the 40th anniversary of The Legend of Zelda, ahead of a remake of Ocarina of Time and a live-action Zelda film expected next year.
The second, tomorrow, is a regular 45-minute Direct about Switch 2 games arriving this winter, followed by a longer gameplay livestream.
Nintendo raised the price of the Switch 2 by $50 earlier this year.
Why it matters
Nintendo raised the price of the Switch 2 by $50 this year, and Grand Theft Auto 6 arrives in November.
Why it matters
A winter line-up is what Nintendo has to answer both with.
1 source
Nintendo runs two showcases in two days
The full story
Nintendo runs two showcases in two days
Nintendo is holding two video presentations this week.
Why it matters. Nintendo raised the price of the Switch 2 by $50 this year, and Grand Theft Auto 6 arrives in November.
Forza Horizon 6 still due on PlayStation this year
Swipe up for the story ↑Scroll down for the story ↓
Playground Games said Forza Horizon 6 will still reach the PlayStation 5 before the end of 2026, after reports that the version had been dropped from this year.
The studio told players planning to buy it on PlayStation to add it to their wishlist and wait for a date.
Why it matters
Microsoft, which owns Playground, has a narrow window: September and October are already crowded with releases, and November belongs to Grand Theft Auto 6.
1 source
Forza Horizon 6 still due on PlayStation this year
The full story
Forza Horizon 6 still due on PlayStation this year
Playground Games said Forza Horizon 6 will still reach the PlayStation 5 before the end of 2026, after reports that the version had been dropped from this year.
Why it matters. Microsoft, which owns Playground, has a narrow window: September and October are already crowded with releases, and November belongs to Grand Theft Auto 6.
The truth, across the day
Swipe up for the truth ↑Scroll down for the truth ↓
Why it works on people
Both companies reached for strategy words - risky, transformation, refocusing - where the plain words are too expensive and redundancies, and a strategy word invites you to think about the company rather than the people.
Who gains
Tencent
Its rivals are quitting always-online games while Tencent keeps three of the biggest running, and its Arena Breakout: Infinite is among the first titles on Arm's new chip.
That's the whole Gaming day.
13 stories, 15 sources.