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Day Lila

Thursday, 1 October 2026

1 Oct · Gaming · In brief

Gaming · Thursday, 1 October 2026

Gaming, in brief

19 stories · 33 sources

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What is moving · 1 of 3

Owners letting studios go

High ↑

Grasshopper Manufacture left its Chinese owner NetEase on 30 September. [9] NetEase had already stopped paying for Nagoshi Studios' first game this year. [11] Undead Labs, dropped by Xbox, lost a buyer and is now owned by its staff. [25]

What is moving · 2 of 3

Consoles getting dearer

Building ↑

A former PlayStation executive suggests selling consoles that cost over $1,000 on a monthly plan, like phones. [14] A research firm warns that rising console prices could slow spending on games. [16] Layden says Xbox must decide whether to keep making consoles at all. [7]

What is moving · 3 of 3

Games moving to every screen

Building ↑

Monster Hunter Wilds reaches Nintendo's Switch 2 on 5 December. [20] A Monster Hunter phone game launches on 29 October. [22] A research firm expects PC to start eating into Xbox game sales by 2030. [16]

Part of the day's signal

One pressure seen across the day runs through Gaming too.

Xbox's boss says Xbox is not for sale. It brings in about 6% of Microsoft's profits

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Asha Sharma, the head of Xbox, Microsoft's games business, told the New York Times on 30 September: "Xbox is not for sale." [1][2][3]

Microsoft keeps Xbox console sales secret, and they are believed to be far behind. [8]

Who is involved

Who is involved

Why it matters

Watch Gears of War: E-Day, Xbox's next big game, due next week, and any detail of Project Helix, the next Xbox console. [6][5]

What's really going on

Microsoft has spent this year shrinking Xbox: nearly 2,000 jobs gone, five studios shut or sold, and Halo handed to Activision. [3][1]

What's really going on

On 30 September Xbox's head, Asha Sharma, said Xbox is not for sale, but she did not rule out a spin-off or a partner. [2][6]

Why it works on people

"Not for sale" answers whether Microsoft will sell Xbox. It does not answer whether Microsoft will spin it off or share it with a partner, which were the options reported in June. [2][3]

Who gains

It now runs Halo and Rare as well as Call of Duty, taking over series Xbox's own studios used to make. [1]

Who pays

Microsoft plans up to 3,200 Xbox job cuts in the year to June 2027. [2]

Nobody knows yet

Whether Microsoft will spin Xbox off or bring in a partner.

Sharma ruled out only a sale. The Information's June report named a separate company or a joint venture as options too. [2][3][6]

Nobody knows yet

How many people pay for Game Pass now.

The 34 million peak is known, and so is the fall since. Microsoft has not given today's number. [1]

Nobody knows yet

How many Xbox consoles have sold this generation.

Microsoft keeps the figure secret. PlayStation 5 is at 95.3 million. [8]

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

Part 1 of 13 · Who else is involved

Part 2 of 13 · How it unfolded

Part 3 of 13

She added that Xbox would look at "the right partnerships" and "the right operating model". [2][4]

Part 3 of 13

The New York Times noted that her answer does not rule out a spin-off. [6]

Part 4 of 13

A spin-off would make Xbox its own company that still works closely with Microsoft. [6]

Part 4 of 13

Its costs would then come off Microsoft's books, the New York Times suggests. [3]

Part 5 of 13

In June, The Information, a tech news site, reported that Microsoft's chief executive Satya Nadella and finance chief Amy Hood had considered spinning Xbox out. [2]

Part 6 of 13

Xbox brings in about 6% of Microsoft's profits, the New York Times reported. [1]

Part 7 of 13

Xbox reported a margin of 3% for its last financial year, which IGN reads as its profit margin. [3]

Part 7 of 13

In July, Sharma wrote that its margins are 3 to 10 times lower than similar businesses. [3]

Part 8 of 13

This summer Xbox lost a fifth of its staff and shut or sold five studios. [1]

Part 8 of 13

Microsoft plans up to 3,200 Xbox job cuts in the year to June 2027. [2]

Part 9 of 13

Last week Microsoft moved the Halo series and the studio Rare to Activision, its Call of Duty publisher, and cut 268 more jobs. [1]

Part 10 of 13

Game Pass, Xbox's monthly games subscription, peaked at 34 million subscribers and then started to fall. [1]

Part 10 of 13

New Call of Duty games no longer join it on launch day. [5]

Part 11 of 13

Analysts quoted by IGN doubt anyone would buy all of Xbox after the $69 billion Activision deal. [3]

Part 11 of 13

They think other companies may buy parts of it instead. [3]

Part 12 of 13

Sharma says 500 million people play on Xbox each month. [1]

Part 12 of 13

She wants to reach players in Africa, Latin America and South Asia through cloud gaming. [1][3]

Part 13 of 13

Shawn Layden, a former head of PlayStation in America, says Xbox must "pick a lane". [7][8]

Part 13 of 13

It can keep fighting PlayStation with consoles, or stop making them, as Sega did in 2001. [7][8]

Grasshopper Manufacture leaves NetEase

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Grasshopper Manufacture, the Japanese studio behind the No More Heroes games, said on 30 September it is independent again. [9][10] Goichi Suda, known as Suda51, founded it in 1998. [9]

GungHo bought it in 2013, and NetEase, a big Chinese games company, bought it in 2021. [9][10]

The studio published its own game, Romeo Is a Dead Man, this year, and Suda says it now knows how to do that. [11][9]

Kotaku reports NetEase has been pulling back from Japan, and stopped funding Nagoshi Studios' first game this year. [11]

Why it matters

NetEase spent heavily on Japanese studios a few years ago and is now letting them go. [11]

Why it matters

A studio on its own keeps its name and its games, and must find the money for each new one.

How it works

Why a games company would rather fund a studio's game than own the studio

How it works

An owner pays a studio's staff every month, hit or miss. A deal pays for one game, and nothing in the years between.

How it works · step 1 of 5

Owning a studio means paying all its staff every month

How it works · step 2 of 5

That bill keeps running between games, when nothing is selling

How it works · step 3 of 5

When money is short, an owner cuts that bill first

How it works · step 4 of 5

It lets studios go and pays for single games through deals instead

How it works · step 5 of 5

The studio keeps its freedom and carries the lean years itself

The twist

A deal pays for one game. Owning a studio also pays its people in the years between games, and that is the money owners are now refusing to spend.

The picture

Grasshopper Manufacture has had two owners in 28 years, and now pays for its own games again.

Seen the same day

Grasshopper Manufacture leaves NetEase

NetEase stopped carrying the studio, so Grasshopper now finds the money for each game itself, as it did for Romeo Is a Dead Man.

Seen the same day

A sale of Undead Labs fell apart first

Xbox stopped paying the studio's wages, a sale fell through, and the staff now carry that cost themselves, with fewer people.

Seen the same day

Monster Hunter heads to Switch 2 and phones

Capcom makes its phone game with an outside studio, TiMi Studio Group, rather than with a phone team of its own.

Seen the same day

Dune's game maker describes film-style funding

Funcom's creative chief says games may be paid for one at a time, like films, so a failure costs the project and not the company.

The catch

Owning also keeps the winnings. Zynga's board turned down Supercell for $400 million, and a year later Supercell made $500 million in profit.

The whole

The people who make our games now wait on a deal for each game, not a steady owner.

The whole

Each time players buy one game and skip another, they help decide which of those deals gets signed next.

Who gains

Leaving NetEase lets it choose how each game is published, after it self-published Romeo Is a Dead Man. [9][11]

Good news

Grasshopper Manufacture, the studio behind No More Heroes, is independent again after five years under NetEase, and has already published one of its own games this year.

Police arrest a suspect in the Rockstar hack

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Dutch police arrested a 24-year-old man in Amsterdam on 28 September in an inquiry into ShinyHunters, a hacking group. [12][13]

Reuters named him as Pepijn van der Stap, a security worker with past hacking convictions. [12]

The FBI says he has led the group since 2025, and that the group broke into Rockstar, maker of Grand Theft Auto. [12][13]

In April it demanded money from Rockstar, which refused, and the leak showed GTA Online earns over $1 million a day. [12][13]

Why it matters

ShinyHunters denies he is a member, and he has not been convicted of this. [12][13] The FBI publicly told the group's other members to come forward before they are found. [12]

Who gains

A suspect in the April break-in that leaked its GTA Online earnings is in custody. [12]

Nobody knows yet

Whether the man arrested in Amsterdam is part of ShinyHunters.

The FBI says he has led the group since 2025. The group denies it, and he has not been convicted. [12][13]

Xbox pulls its app from older Samsung TVs

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Owners of 2020 Samsung smart TVs will lose the Xbox app on 3 November, Microsoft told them by email. [15]

The app is how those TVs play Xbox games streamed from the internet, with no console. [15]

Microsoft says the newer software behind cloud gaming no longer works on those TV models. [15]

The New York Times also reports that work on an Xbox cloud controller stopped after Microsoft bought Activision in 2023, though an Xbox spokesperson says it is still being developed. [15]

Why it matters

Sharma says cloud gaming is how Xbox will reach new players in Africa, Latin America and South Asia. [1] On older TVs, the same service is shrinking.

Who pays

They lose the Xbox app on 3 November, and with it Xbox cloud gaming on that TV. [15]

Nobody knows yet

Why the Xbox app is leaving 2020 Samsung TVs.

Microsoft's email blames the TVs' software. Kotaku, citing Windows Central, points out the app runs on the web, so that reason makes little sense to them. [15]

A PlayStation veteran says make this generation last

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Shuhei Yoshida, a former PlayStation executive, told The Verge that Sony and Nintendo should keep the PS5 and Switch 2 going as long as possible. [14]

He said the parts inside consoles and PCs have risen in price far more than other entertainment. [14] He does not think many players or developers are asking for more power. [14]

If the next console costs over $1,000, he suggested selling it like a phone, on a plan of about $50 a month. [14]

Why it matters

A new console starts with no owners, so games made only for it sell to few people at first. Rising part prices make that start more expensive for everyone. [14]

Who pays

Part prices have risen far faster than other entertainment, and the next consoles may cost over $1,000. [14]

Forecast: game sales grow slowly to 2030

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S&P Global Market Intelligence Kagan, a research firm, expects money spent on games to rise from $204.4 billion in 2025 to $229.1 billion in 2030. [16]

That is growth of about 2.3% a year. [16] It expects PC to bring in the most, reaching $49.23 billion, and cloud gaming to grow fastest. [16]

S&P's forecast for cloud gaming, the part of the business it expects to grow fastest, at about 9.7% a year.

It says Xbox Series consoles have weakened sharply, and PC will start eating into Xbox game sales by 2030. [16]

Why it matters

The firm expects the growth to come mostly from players already playing paying more, through subscriptions and in-game purchases. [16] It says higher console prices and costlier games could slow it. [16]

Who gains

S&P expects PC to bring in the most money of any platform by 2030 and to take sales from Xbox. [16]

Part of a signal

Higher prices putting buyers off

Also seen in Food, Finance and Money.

The whole signal →

Ubisoft renames a division Massive Entertainment

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Ubisoft, the games publisher, renamed its Creative House 2 as Massive Entertainment on 30 September. [17]

This part of the company makes The Division, Ghost Recon and Splinter Cell, with teams in Sweden, Toronto, Montreal and Paris. [17]

It takes the name of Massive, a Swedish studio founded in 1997 and bought by Ubisoft in 2008. [17]

Ubisoft split its games into these Creative Houses after years of weak results and closed studios. [17]

Why it matters

Each Creative House now answers for the growth of its own games, Ubisoft says. [17] Christoph Hartmann, who founded 2K Games, runs this one. [17]

Halo's future is argued in public

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Since Microsoft moved Halo to Activision, past and present Halo staff have argued about the series online. [18]

Brian Jarrard, community director at Halo Studios, denied a claim that the studio kept a blacklist of critical YouTubers. [18] He called it "annoyingly false". [18]

Frank O'Connor, creative director of the whole series until 2023, set out three paths for Activision on LinkedIn. [19] He urged it to hire laid-off developers from Bungie and Halo Studios. [19]

Why it matters

Activision has given few clues about who will make the next Halo. [19] Bungie, owned by Sony, has also lost many veteran developers in Sony's latest cuts, Kotaku notes. [19]

Nobody knows yet

How Activision will rebuild Halo, and with whom.

Activision has given few clues about its plans or its team. [19]

A sale of Undead Labs fell apart first

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Undead Labs, the State of Decay studio Xbox bought in 2018, said last week it is now owned by its staff. [25]

Before that, Splash Damage, a British studio, was buying it, The Game Business reported and Kotaku confirmed. [25]

The money came from Emona Capital, an investment firm that backs Splash Damage, but the deal fell apart. [25]

Undead Labs cut jobs as it went independent, and is finishing State of Decay 3 without a named publisher. [25]

Why it matters

Ninja Theory, another studio Xbox let go, also had sale deals fall through and now faces closure. [25] For studios Xbox drops, a buyer is not guaranteed.

How it works

A sale of Undead Labs fell apart first

Xbox stopped paying the studio's wages, a sale fell through, and the staff now carry that cost themselves, with fewer people.

The idea, in story 2: Why a games company would rather fund a studio's game than own the studio →

Who pays

The studio cut jobs as it became independent, after a sale to Splash Damage fell apart. [25]

Nobody knows yet

Who will publish State of Decay 3, and why the Splash Damage deal fell apart.

Undead Labs has named no publisher, and the reports do not say why the sale failed. [25]

Good news

Undead Labs, dropped by Xbox, is now owned by its own staff and is still making State of Decay 3.

Monster Hunter heads to Switch 2 and phones

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Capcom's Monster Hunter Wilds comes to Nintendo's Switch 2 on 5 December, with every free update so far, including new monsters. [20]

Producer Genki Sunano told Kotaku it runs at a steady 30 frames a second in handheld play, even with four players. [21]

He called the work of rebuilding it a painstaking process. [21] Separately, Monster Hunter Outlanders, a phone game made by TiMi Studio Group with Capcom, launches on 29 October. [22]

Why it matters

Capcom is taking its biggest series to a handheld and to phones at once. More people can play it without buying a new machine.

How it works

Monster Hunter heads to Switch 2 and phones

Capcom makes its phone game with an outside studio, TiMi Studio Group, rather than with a phone team of its own.

The idea, in story 2: Why a games company would rather fund a studio's game than own the studio →

Good news

Monster Hunter Wilds reaches Nintendo's Switch 2 on 5 December with every free update so far, including new monsters.

Dune's game maker describes film-style funding

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Funcom, the studio behind the survival game Dune: Awakening, is bringing it to consoles with a new single-player mode. [26]

Joel Bylos, its chief creative officer, told GamesIndustry.biz that Legendary, which owns the Dune film rights, approves its work through tickets in a tracking tool. [26]

He said games may copy Hollywood and raise money for each game separately, instead of risking the whole company. [26]

He added that this only works for staff where unions are strong. [26]

Why it matters

Raising money one game at a time puts the risk on each project, not on the studio. [26] Workers hired for one game may then be on short contracts, Bylos warns. [26]

How it works

Dune's game maker describes film-style funding

Funcom's creative chief says games may be paid for one at a time, like films, so a failure costs the project and not the company.

The idea, in story 2: Why a games company would rather fund a studio's game than own the studio →

Zynga nearly bought Supercell for $400 million

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Mark Pincus, who founded the games company Zynga, says he agreed in 2012 to buy Supercell for $400 million in cash. [24]

In one year Supercell made more profit than the whole price Zynga's board turned down, by Pincus's account.

Zynga's board blocked it, he says, after its $180 million purchase of OMGPop, the Draw Something studio, failed. [24] Supercell makes mobile games such as Clash of Clans.

A year later, Pincus said, Supercell made $500 million in profit. [24] He told the Deconstructor of Fun podcast he wished he had fired his board. [24]

Why it matters

Owning a studio means keeping the money from its hits. Zynga's board passed on Supercell, which then made more in one year than Zynga would have paid. [24]

Sony will skip CES for the first time

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Sony will not exhibit at CES, the Consumer Electronics Show, in 2027. [31] It is the first time Sony has missed it since the show began in 1967. [31]

A spokesperson told Bloomberg Sony is focused on entertainment, its own characters and stories, and tools for creators. [31]

Sony once used CES for PlayStation news, and showed the PS5 logo there in 2020. [31] It has not gone to Gamescom, a big games fair, since 2019. [31]

Why it matters

Sony now shows its games in its own online broadcasts, where it alone decides what is shown. [31]

Kickstarter still funds hundreds of games

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Games raised $26 million on Kickstarter in 2025, the same as in 2024, research by Ico Partners shows. [33]

Game projects funded on Kickstarter in 2025, by Ico Partners' count. Most raise small sums.

In all, 443 game projects were funded, 4% fewer than the year before. [33] Eleven raised over $500,000, the most since 2015, said Ico's Thomas Bidaux. [33]

Developers told GamesIndustry.biz a campaign now needs an almost finished game and an audience already waiting. [33]

Why it matters

Crowdfunding lets a small studio raise money from players instead of from a publisher or an investor. [33] It works best for studios that already have fans.

Good news

Eleven games raised more than $500,000 each on Kickstarter in 2025, the most since 2015.

Blizzard goes after gold buyers in WoW: Forever

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World of Warcraft: Forever, a new version of Blizzard's online role-playing game, opens on 4 November, and its test version already has a gold-buying problem. [28]

Some players pay real money for in-game gold, which breaks the rules. [28]

Blizzard says it will now act against buyers' accounts as well as sellers', removing the gold or closing accounts. [28]

A popular streamer, Ziqo, had most of the gold he received wiped but was not banned. [28]

Why it matters

In a game where players trade with each other, bought gold pushes up prices for everyone who earns it by playing.

Why it matters

Blizzard is also asking test players about new classes such as Bard and Witch, players report. [29]

Who pays

Blizzard says it will now remove bought gold from buyers and may close their accounts. [28]

Nobody knows yet

Whether Blizzard will punish streamers who take bought gold.

Kotaku asked Blizzard and had no reply when it published. [28]

Jagex admits its Switch 2 version looks bad

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Jagex, the studio behind RuneScape, said its survival game RuneScape: Dragonwilds does not look as it should on Nintendo's Switch 2. [23]

Players complained of blurry pictures after the game reached consoles in September. [23] Jagex promised fixes in several patches over time, not one big update. [23]

It also sent Nintendo new store screenshots that match how the game really looks. [23]

Why it matters

Making a big game run well on a smaller machine takes months of rebuilding, as Capcom described for Monster Hunter. [21]

Naughty Dog reportedly plans a new Uncharted

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Naughty Dog, the studio behind The Last of Us, is planning a new Uncharted game, the site MP1st reports. [32]

It would come after Intergalactic: The Heretic Prophet, which the studio will fully show in 2027. [32]

Shaun Escayag, who came back to Naughty Dog in 2021, is said to lead it. [32]

A well-known leaker, NateTheHate, backed the report, and Kotaku says plans this early can still change. [32]

Why it matters

Naughty Dog has released few games during the PS5's life. [32] A new Uncharted may not arrive until the PS6. [32]

Nobody knows yet

Whether Naughty Dog's new Uncharted is real.

It rests on a report by MP1st and one leaker, and Kotaku says plans this early can change. [32]

Nintendo adds free stages to its Star Fox remake

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Nintendo released a free update for its 2026 Star Fox remake on Switch 2. [27]

Version 1.2.0 adds three stages to battle mode and lets four people play on one console with a split screen. [27] Online lobbies no longer close when the host leaves. [27]

Kotaku says the remake has not sold strongly, and the download costs $50. [27]

Why it matters

A free update gives a slow-selling game a reason to be noticed before the holidays, when Nintendo's Ocarina of Time remake also sits on the shelves. [27]

A Pikachu card sells for $8.4 million

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A 2015 Pikachu card drawn by Y. Fujishima for a contest in Pokemon Art Academy, a Nintendo 3DS drawing game, sold for $8.4 million on 28 September. [30]

Two top-grade copies of the same card, sold three months apart. The second went for over 60 times the first.

Only 100 copies were made, all given to the artist as a prize. [30] Another top-grade copy sold for $135,000 in June. [30]

Only Logan Paul's Illustrator Pikachu, at $16.49 million, has sold for more. [30]

Why it matters

Rare Pokemon cards have broken several sales records this year, Polygon says. [30] The card was a prize, never sold in shops.

Who gains

It sold the Art Academy Pikachu for $8.4 million, and that price includes the fee buyers pay the auction house. [30]

That's the whole Gaming day.

19 stories, 33 sources.