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This Week in Videogames

No ads. No AI. Just videogame coverage that matters. Fully independent, commercial free, and reader-funded. https://thisweekinvideogames.com/

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Following in the footsteps of Innersloth and Landfall, Devolver-owned developer @fireflystudios.bsky.social is the latest to branch out into publishing, with a focus on the strategy game niche. We ask studio head Nick Tannahill about why the developer-to-publisher trend continues at pace.

Firefly is the Latest Developer to Turn to Publishing With New Label WuselFaktory“When you have been self-publishing for over 10 years on Steam, it’s not that big of a jump to publish for somebody else."thisweekinvideogames.com

Limerence is new thriller about a woman and her manipulative AI partner. @maddie-b-a.bsky.social speaks to @salixgames.bsky.social director Jessica Saunders about the human story at its center, inspired by numerous real-world experiences, which tries to show that "this could happen to anyone."

AI Boyfriend Thriller Limerence Is Still a Human StoryThe indie studio's first attempt at building its own AI was "garbage," pushing them to instead make everything by handthisweekinvideogames.com

Krafton has reported record-high half-year revenue of ₩2.7 trillion (approximately US $1.8 billion) in its Q2 FY2026 financial earnings report. Krafton attributes its success to PUBG and the contentious launch of Subnautica 2, which it says has given the IP “franchise” potential.

Krafton Reports Record Half-Year Revenue and Profit Following Subnautica 2 LaunchAs well as strong quarterly showings in its Q2 FY2026 report, Krafton says it's broken records over the first half of the financial year.thisweekinvideogames.com

In the past 12 months, Xbox revenue has decreased by US $1.7 billion as a result of continual declines in content, services, and hardware. The Xbox division generated a total of US $21.9 billion in revenue for fiscal year 2026.

This Week in Videogames

Microsoft has noted continued declines in Xbox content, services, and hardware revenue, on top of notable expenses related to the 1600 layoffs and studio divestures it recently made. It reported 18% growth in revenue overall, however: US $90 billion for the quarter, and US $331.8 billion annually.

Microsoft has noted continued declines in Xbox content, services, and hardware revenue, on top of notable expenses related to the 1600 layoffs and studio divestures it recently made. It reported 18% growth in revenue overall, however: US $90 billion for the quarter, and US $331.8 billion annually.

Microsoft Reports $90 Billion In Q4 Revenue, Amid Continuing Xbox Declines and Layoff ExpensesMicrosoft CEO Satya Nadella remarked that Xbox will return to growth in fiscal year 2027, but declines are still expected next quarterthisweekinvideogames.com

Ahead of the Independent Workers’ of Great Britain’s final hearing against Rockstar Games over alleged union busting, @maddie-b-a.bsky.social speaks to the chair of the Game Workers branch about how to unionise videogame workers, and the union’s confidence taking on Rockstar.

UK Game Workers' Union is "Very Confident" Ahead of Its Final Hearing Against Rockstar GamesThe IWGB Game Workers branch chair Spring McParlin-Jones said the union "can't get too caught up" in Rockstar's size or legal powerthisweekinvideogames.com

Wizards of the Coast president John Hight will step down in September 2026. Hight joined Wizards of the Coast in August 2024 after almost 13 years at Blizzard Entertainment. His departure comes after WotC owner Hasbro reported a US $56 million impairment against its videogame portfolio.

Wizards of the Coast President to Step DownHight oversaw development on videogame projects including Archetype Entertainment’s upcoming sci-fi RPG Exodus.thisweekinvideogames.com

Lightspeed LA has announced it’s laying off staff due to changing the “creative and development direction” of upcoming game Last Sentinel. Lightspeed Studios, a subsidiary of Tencent Games, says that North America remains “a cornerstone” of its gaming strategy despite the cuts to its LA studio.

Tencent-Owned Lightspeed LA Hit With LayoffsGamesBeat reports that 80 employees have been impacted at the studio. thisweekinvideogames.com
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007 First Light has proven that IO Interactive was right to be trusted with the James Bond IP. Two months after launch, @jamiehore.bsky.social quizzes Senior Combat Designer Tom Marcham about the lessons IO learned, designing the perfect punch, and finally working on a game “your nan understands.”

007 First Light Made at Least One Nan Care About Videogames“IO wasn’t a studio that was necessarily known for its combat.. I think now we’ve kind of shown that we can do that, which is very important for us as a studio."thisweekinvideogames.com
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Grand Theft Auto Online has enabled restrictions for its gambling minigames for players located in Australia. Minigames are found at the in-game Diamond Casino, with casino chips available for purchase with in-game currency, obtained through progression or in-game transactions via Shark Cards.

GTA Online Casino Gambling Minigames Become Restricted in AustraliaOver 50 countries blocked the gambling minigames found at the in-game Diamond Casino when it was introduced to GTA Online in 2019 thisweekinvideogames.com
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Double Fine has announced layoffs affecting 23 workers. The news comes as the studio regains independence from former parent company Xbox. Studio founder Tim Schafer remarked that "only the survival of our studio would ever make us consider such a painful action."

Double Fine Lays Off 23 Developers Following Xbox SplitThe studio employed approximately 90 employees immediately prior to its split. thisweekinvideogames.com

Grand Theft Auto Online has enabled restrictions for its gambling minigames for players located in Australia. Minigames are found at the in-game Diamond Casino, with casino chips available for purchase with in-game currency, obtained through progression or in-game transactions via Shark Cards.

GTA Online Casino Gambling Minigames Become Restricted in AustraliaOver 50 countries blocked the gambling minigames found at the in-game Diamond Casino when it was introduced to GTA Online in 2019 thisweekinvideogames.com

007 First Light has proven that IO Interactive was right to be trusted with the James Bond IP. Two months after launch, @jamiehore.bsky.social quizzes Senior Combat Designer Tom Marcham about the lessons IO learned, designing the perfect punch, and finally working on a game “your nan understands.”

007 First Light Made at Least One Nan Care About Videogames“IO wasn’t a studio that was necessarily known for its combat.. I think now we’ve kind of shown that we can do that, which is very important for us as a studio."thisweekinvideogames.com

Capcom has posted its financial earnings report for the first quarter of FY2026, reporting strong growth across the board. The company has confirmed that Resident Evil Requiem has now hit 8 million units sold, while new IP Pragmata has surpassed 2.5 million units sold.

Resident Evil Requiem Sales Pass 8 Million, Pragmata Passes 2.5 Million, Capcom ConfirmsAcross its catalogue, Capcom sold 23.81 million units during the quarter, up from 14.16 million sold in the same period of the previous financial yearthisweekinvideogames.com

Xbox’s Chief Technology Officer, Scott Van Vliet, has apologised to users after the Xbox platform was severely disrupted on 27 July. There was around 12 hours of downtime for some users after “a licensing service that sits outside of Xbox, but which Xbox depends upon, began failing.”

Xbox CTO Apologises for "Unacceptable" DowntimeVan Vliet said the downtime was “unacceptable” and that a “post-incident review” will be conducted thisweekinvideogames.com

The Sims has a longstanding history of pioneering diversity and representation in the life sim genre. And despite everything happening with EA, the Maxis team insists there's a "huge amount of desire from pretty much every level to be more diverse, more representative."

Despite Everything, The Sims Team Is Still Bullish on DiversitySenior character artist Jessica Hyland talks about the technical challenges behind character creation tools and what drives the industry to foster inclusivitythisweekinvideogames.com

Bethesda union OneBGS has accused the studio of violating Canadian labour laws. The union claimed laid off employees in Canada were told they would be employed until September, but received termination emails on 17 July 2026 offering “the bare legal minimum in terms of severance”

Bethesda Union Accuses Fallout Developer of Violating Canadian Labour LawsOneBGS has filed "yet another legal complaint against Bethesda" over "smallest severance legally possible" given to Canadian employeesthisweekinvideogames.com

A movement urging a week-long boycott of PlayStation services in August, organising under the #PSBlackout hashtag, has emerged on social media. A mission statement reads: “PlayStation has never felt more disconnected from its community” and that ending disc production “feels like the last straw.”

Week-Long PlayStation "Blackout" Planned to Protest End of Physical Disc ProductionBrought to prominence by the 'Does it Play?' X account, #PSBlackout urges PlayStation users to not log in from 23 August to 30 August 2026thisweekinvideogames.com
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