Sherbytes: Industry News Megathread, v.1

[method115]

Guessing this will be how they keep people , by having access to other storefronts available on Xbox

Phil Spencer wants Epic Games Store and others on Xbox consoles

More stores mean more sales!

www.polygon.com

Yea I saw that but that just seems even worse to me. So now they are going to give up their 30% of sales that they make through the console? I just don't see it happening. Also in order to make that work they'd have to turn the console into a PC which would come with PC problems. Like people pirating games and hacking the console in general.

 

[rikwebb]

Take Two is acquiring Gearbox Entertainment from Embracer for $460m

Embracer Group divests Gearbox Entertainment for a consideration of USD 460 million to Take-Two Interactive Software, Inc. - Embracer Group

INSIDE INFORMATION: Embracer Group has today entered into an agreement to divest Gearbox Entertainment, for a consideration of USD 460 million (SEK 4.9 billion) to Take-Two Interactive Software, Inc. (“Take-Two”). The proceeds from the deal will, upon closing, significantly reduce net debt...

embracer.com

Embracer Group has today entered into an agreement to divest Gearbox Entertainment, for a consideration of USD 460 million (SEK 4.9 billion) to Take-Two Interactive Software, Inc. ("Take-Two"). The proceeds from the deal will, upon closing, significantly reduce net debt, earnout obligations and capex. Embracer retains selected companies, including Gearbox Publishing San Francisco (to be renamed), with the publishing rights to the Remnant franchise, the upcoming Hyper Light Breaker and other notable unannounced game releases.
"Today's announcement marks the result of the final structured divestment process and is an important step in transforming Embracer into the future with notably lower net debt and improved free cash flow. Through the transaction, we lower business risk and improve profitability as we transition to becoming a leaner and more focused company. After evaluating several options for Gearbox, I am happy that we have reached a solution that is in the best interest of all stakeholders. Randy and the team have been great team members throughout the past years, and I would like to thank them all for that. As one of the world's greatest games developers, I am confident that Gearbox will continue to innovate and thrive in their new home within Take-Two," says Lars Wingefors, co-founder and CEO of Embracer.

"As a significant long-term Embracer Group shareholder, I believe in the strategy for the Embracer Group going forward and am completely convinced that this transaction is the best possible scenario and an obvious net positive arrangement for Embracer Group, for Take-Two and, of course, for Gearbox Entertainment. My primary interest is always Gearbox, including our talent and our customers. I want to personally ensure fans of our games that this arrangement will ensure that the experiences we have in development at Gearbox will be the best it can possibly be," says Randy Pitchford, founder and CEO of Gearbox Entertainment.

Transaction key components

• The purchase price on a cash and debt free basis and assuming a normalized level of working capital amounts to USD 460 million (SEK 4.9 billion) and will be subject to adjustments by customary purchase price mechanics.
• The consideration at closing will be paid 100% in newly issued Take-Two shares. The number of Take-Two shares will be calculated by dividing the purchase price by the volume weighted average closing price per share on the Nasdaq Global Select Market during the five trading day period ending on the trading day immediately prior to the closing date. Embracer's intent is to sell these shares to receive cash proceeds soon after closing. Closing is expected in Q1 FY 24/25, ending June 2024.
• Following purchase price adjustments, transaction costs, share sell-down and earnout settlements (including earnouts earned and due to be previously paid in Q1 FY 24/25) the expected net cash proceeds amount to approximately USD 300-330 million (SEK 3.2-3.5 billion).
• Cash earnouts in accordance with non-GAAP will be reduced by SEK 1.6 billion compared to the group total of SEK 6.3 billion as of Q3 FY 2023/24 and of a total maximum of approximately 30 million B shares in share earnout obligations approximately 18 million B shares will be reduced. In connection with closing, the remaining approximately 12 million B shares will still be issued as settlement of certain earnout obligations.
• The divested assets include:
  • Gearbox Software (Frisco, Texas)
  • Gearbox Montréal
  • Gearbox Studio Quebec
  • Borderlands and Tiny Tina's Wonderlands franchises, as well as Homeworld, Risk of Rain, Brothers in Arms and Duke Nukem
• The retained assets include:
  • Gearbox Publishing San Francisco (to be renamed prior to closing, formerly named Perfect World Entertainment), including the publishing rights to the Remnant franchise, the upcoming Hyper Light Breaker and other notable unannounced game releases
  • Cryptic Studios, including MMO titles Neverwinter Online and Star Trek Online.
  • Lost Boys Interactive
  • Captured Dimensions
• The retained companies will be welcomed and integrated into other parts of Embracer Group in the coming period. All companies are expected to contribute with a positive cash flow going forward.

Looks like Take2 will integrate Gearbox as part of 2K ( who already were publishers for the Borderlands Series

Take-Two Interactive Software, Inc. to Acquire The Gearbox Entertainment Company Inc., Developer of Highly Successful Borderlands Franchise

NEW YORK, March 28, 2024--Take-Two Interactive Software, Inc. (NASDAQ:TTWO), one of the largest interactive entertainment companies in the world, announced that it has entered into a definitive agreement with Embracer Group to acquire The Gearbox Entertainment Company, an award-winning creator...

finance.yahoo.com

"Our acquisition of Gearbox is an exciting moment for Take-Two and will strengthen our industry-leading creative talent and portfolio of owned intellectual property, including the iconic Borderlands franchise," said Strauss Zelnick, Chairman and CEO of Take-Two. "This combination enhances the financial profile of our existing projects with Gearbox and unlocks the opportunity for us to drive increased long-term growth by leveraging the full resources of Take-Two across all of Gearbox's exciting initiatives."

"With nearly 20 years of history working together, Gearbox has played an integral role in our success, given their unique ability to create interactive entertainment experiences that feature beloved characters, exciting new worlds, and humorous storytelling," added David Ismailer, President of 2K. "We are thrilled to welcome Randy Pitchford and his team of passionate, talented developers to 2K and we look forward to releasing numerous projects in the future as colleagues. We have loved partnering with Gearbox on every iteration of the Borderlands franchise and are excited to be in active development on the next installment in the series."

"Joining forces with Take-Two Interactive and 2K will help Gearbox ascend to our next level," said Randy Pitchford, Founder and CEO of Gearbox Entertainment. "Take-Two and 2K have demonstrated repeatedly their commitment to our engine of generating creativity, happiness, and profit. We set the bar for interactive entertainment and achieved remarkable results with groundbreaking, record-setting games when we worked together at arm's length as partners. I'm incredibly excited about what we can accomplish now that we're fully aligned as one."

Future Gearbox Operating Structure

Gearbox will operate as a studio within 2K and will be led by Founder and CEO, Randy Pitchford, and his management team. The acquisition adds a robust and proven development team to 2K's incredibly talented developer community, including personnel that have worked together on multiple critically and commercially successful games. Gearbox operates studios in Frisco, Texas; Montreal, Canada; and Quebec City, Canada.

 

[Valhoven]

Take Two is acquiring Gearbox Entertainment from Embracer for $460m

Embracer Group divests Gearbox Entertainment for a consideration of USD 460 million to Take-Two Interactive Software, Inc. - Embracer Group

INSIDE INFORMATION: Embracer Group has today entered into an agreement to divest Gearbox Entertainment, for a consideration of USD 460 million (SEK 4.9 billion) to Take-Two Interactive Software, Inc. (“Take-Two”). The proceeds from the deal will, upon closing, significantly reduce net debt...

embracer.com

Looks like Take2 will integrate Gearbox as part of 2K ( who already were publishers for the Borderlands Series

Take-Two Interactive Software, Inc. to Acquire The Gearbox Entertainment Company Inc., Developer of Highly Successful Borderlands Franchise

NEW YORK, March 28, 2024--Take-Two Interactive Software, Inc. (NASDAQ:TTWO), one of the largest interactive entertainment companies in the world, announced that it has entered into a definitive agreement with Embracer Group to acquire The Gearbox Entertainment Company, an award-winning creator...

finance.yahoo.com

I like this move.

 

[rikwebb]

I like this move.

Best choice to be honest, years of history together, probably already had contracts in place for publishing BL4 plus now they get a few more IP's to play with

 

[Law Talkin’ Guy]

Looks like Sega is divesting itself of Relic Entertainment (developer of Company of Heroes and the 40K Dawn of War series) which will be an independent studio going forward

240 jobs gone and Relic sold off as Sega reckons with the hangover of 'the favorable winds of the early Covid-19 period'

Sega promised "structural reforms" after scrapping Hyenas last year, and now we know what those look like.

www.pcgamer.com

 

[Valhoven]

More on indie developers having a hard time getting games funded in current climate – here:



Big Xbox Game Pass & Epic exclusive deals have dried up for indie devs, say Mega Crit (Slay the Spire) & Red Hook Studios (Darkest Dungeon).

Microsoft's deals have come "way down" in scope, says Mega Crit co-founder Casey Yano.

"The gold rush is over".

 

[avenue94]

Big Xbox Game Pass & Epic exclusive deals have dried up for indie devs, say Mega Crit (Slay the Spire) & Red Hook Studios (Darkest Dungeon).

Microsoft's deals have come "way down" in scope, says Mega Crit co-founder Casey Yano.

"The gold rush is over".

Much like the streaming bubble, it's an indictment of Microsoft artificially inflating a market only for it be unsustainable.

 

[Law Talkin’ Guy]

More on indie developers having a hard time getting games funded in current climate – here:



Big Xbox Game Pass & Epic exclusive deals have dried up for indie devs, say Mega Crit (Slay the Spire) & Red Hook Studios (Darkest Dungeon).

Microsoft's deals have come "way down" in scope, says Mega Crit co-founder Casey Yano.

"The gold rush is over".

I hope I’m wrong, but it honestly feels like we could be in the early stages of being on the cusp of another video game crash like they had in 1983 or whatever. Even if we’re not it’s certainly a time of turbulence in the industry.

 

[Valhoven]

I hope I’m wrong, but it honestly feels like we could be in the early stages of being on the cusp of another video game crash like they had in 1983 or whatever. Even if we’re not it’s certainly a time of turbulence in the industry.

Scary thought. I've a hard time letting go of the perception that gaming is now too big to fail, having eclipsed both film and music, iirc. I think we're entering a period a tectonic shift, though, that will change the industry – ending up where, what industry forces rise and fall, and all that I don't know.

 

[Valhoven]

Been saying this for years. Everyone wants to argue over how much thermal paste to use or TFLOPS but not much matters outside games. We're gamers, right? We game. Where the games at?



You can have the best strategy, the best hardware, the best service, the best price, the best marketing… but it counts for nothing if you can’t deliver the best games

“I think Phil Spencer, for so long cast as Xbox’s saviour, may ultimately be remembered as the man who killed it.”

 

[My Spot]

 

[KaNesDeath]

I hope I’m wrong, but it honestly feels like we could be in the early stages of being on the cusp of another video game crash like they had in 1983 or whatever.

Most Triple A studios are two consecutive new game release flops away from shuttering because of release infrequency or their entire studio is being kept afloat by one live service game. Theyll likely go on another independent game studio acquisitions craze to delay the inevitable.

 

[rikwebb]

Discord is going to start showing ads, there will be an option to hide them but not sure if you're able to without Nitro

https://www.wsj.com/tech/discord-to-start-showing-ads-for-gamers-to-boost-revenue-bf5848b9

Discord will keep the adverts relevant to its gaming-centric users, and will offer rewards if they stream specific games to their friends and complete "in-game tasks."

Wall Street Journal cites "people familiar with [Discord's] plans" in its report, claiming that the company is currently hiring "over a dozen people" for the sales of implementing advertisements into the app. Discord has confirmed that users can turn off advertisements within the settings, but it's unclear if this setting will be available for everyone to access, or if it will be locked behind a paid perk such as Discord Nitro.

 

[Valhoven]

Not enough cameras, IMO:



Having a coffee after being scanned for a videogame at Kojima Productions.

 

[KaNesDeath]

Been saying this for years. Everyone wants to argue over how much thermal paste to use or TFLOPS but not much matters outside games. We're gamers, right? We game. Where the games at?

Consoles are enclosed delivery platforms. Whose purpose is to acquire, maintain or lose market dominance through exclusivity content. Console makers set the hardware specifications, creates the OS and forces users into monthly subscriptions to play online. Their existence is anti-gamer.

Only two benefits exist for consoles existence;

1. Decreases barrier of entry to gaming.
2. Sets a minimum hardware specifications standard for new game development.

 

[Valhoven]

Some UK numbers for March. Unconfirmed but rumour elsewhere is Helldivers 2 has sold a mountain-moving 15M units.



UK Market Monthly Chart March 2024:

• PS5 No.1 In UK, +25% MoM

• Nintendo Switch No.2 -20% YoY

• Xbox Series No.3 -18% YoY

• 3.65 Million Games Sold March 2024

• Helldivers II No.1 For Second Consecutive Month, Digital & Physical

Best Selling Games UK March 2024 Top 10 Digital & Physical:

Spoiler

 

[rikwebb]

Some UK numbers for March. Unconfirmed but rumour elsewhere is Helldivers 2 has sold a mountain-moving 15M units.

A couple of weeks ago or so it was supposedly around 8m

 

[KaNesDeath]

Some research firm did a study on the most popular games in 2023 on each platform by MAU. Here are the Pc results:

 

[Valhoven]

Project updates from Canada's Motive:



EA's Motive Studio is joining Battlefield and building out a new separate team to work on the franchise.

Iron Man development continues in parallel, as the studio hit a "major milestone" this year and has made "excellent progress".

–––
That period of evolution and elevation continues today, with the exciting announcement that a group of developers from Motive are joining the talented teams at Criterion, DICE and Ripple Effect to continue unlocking the full potential of Battlefield.

The directors who delivered our Dead Space remake in 2023, Philippe Ducharme (Executive Producer) and Roman Campos-Oriola (Creative Director), will build a team at Motive to work alongside the Battlefield studios around the world creating what’s next for Battlefield– a universe across both multiplayer and single-player experiences. Their proven expertise in storytelling, immersive battles and developing on the Frostbite engine uniquely positions them to help advance the vision for Battlefield, led by Vince Zampella (EVP, Group GM of Respawn and Battlefield) and Byron Beede (SVP, GM Battlefield).

In parallel, development continues to move forward on our Iron Man project, led by Olivier Proulx (Executive Producer) and Ian Frazier (Creative Director). The team made excellent progress this year, hitting a major internal milestone and laying a robust foundation for the journey ahead. Iron Man is an important priority for Motive, and I’m very proud of the work we’ve accomplished so far.

 

[Law Talkin’ Guy]

Project updates from Canada's Motive:



EA's Motive Studio is joining Battlefield and building out a new separate team to work on the franchise.

Iron Man development continues in parallel, as the studio hit a "major milestone" this year and has made "excellent progress".

–––
That period of evolution and elevation continues today, with the exciting announcement that a group of developers from Motive are joining the talented teams at Criterion, DICE and Ripple Effect to continue unlocking the full potential of Battlefield.

The directors who delivered our Dead Space remake in 2023, Philippe Ducharme (Executive Producer) and Roman Campos-Oriola (Creative Director), will build a team at Motive to work alongside the Battlefield studios around the world creating what’s next for Battlefield– a universe across both multiplayer and single-player experiences. Their proven expertise in storytelling, immersive battles and developing on the Frostbite engine uniquely positions them to help advance the vision for Battlefield, led by Vince Zampella (EVP, Group GM of Respawn and Battlefield) and Byron Beede (SVP, GM Battlefield).

In parallel, development continues to move forward on our Iron Man project, led by Olivier Proulx (Executive Producer) and Ian Frazier (Creative Director). The team made excellent progress this year, hitting a major internal milestone and laying a robust foundation for the journey ahead. Iron Man is an important priority for Motive, and I’m very proud of the work we’ve accomplished so far.

So EA has their own version of the “COD mines” and now the Dead Space remake team has been relegated to working as a support studio for the Battlefield franchise? Damn shame.