Gait Games

Bartering with your crops.

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If you heard the sound of a wet fart reverberating throughout the world yesterday, it’ll likely be thanks to the most recent State of Unreal, where Epic offered some more concrete details regarding its plans for Unreal Engine 6. Namely, that it wants to infuse it with generative AI, and there’s also some bollocks about using your Fortnite skins in other games and vice versa. But speaking of Fortnite, the same showcase announced a Vampire Survivors collab was on the cards, only for developer poncle to learn about the generative AI stuff the same time as the rest of us and express some concern over it.

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**Disney’s *Hexed*: Examining the Trailer and Social Media Presentation**

Yesterday, Disney released a new trailer for its forthcoming animated feature, *Hexed*, which is set to debut in theaters on November 25. The film features Hailee Steinfeld as Billie, a teenage girl who uncovers her magical talents and finds a community among witches and wizards. Although early reactions to the film may differ, a significant element of the trailer has surfaced regarding its visual arrangement.

Viewers have noted that the actions in *Hexed* appear deliberately designed to keep attention focused at the center of the screen. This creative decision raises inquiries about the reasons behind such framing. Many theorize that the goal is to enable seamless sharing of clips on popular vertical-video platforms like TikTok and Instagram.

In today’s digital environment, cinematic marketing greatly depends on social media. Platforms like TikTok and Instagram not only spread official material but also feature countless fan-made edits showcasing beloved characters paired with trending music. To thrive in this realm, companies like Disney frequently issue vertical versions of their trailers, which may necessitate cropping segments of the original widescreen footage. However, in the instance of *Hexed*, the trailer’s visuals are designed in a manner that keeps most content intact, with a central emphasis that easily transitions to vertical formats.

A notable distinction arises when comparing the trailer for *Hexed* with Dreamworks’ forthcoming animated project, *Forgotten Island*. The latter presents a wider variety of shot compositions, employing more of the screen’s expanse while still offering centered shots appropriate for social media sharing. This variation has sparked discussions among fans regarding the artistic implications of such purposeful framing choices.

While this trend isn’t new for Disney, as seen in Pixar’s *Elio*—which also employed centralized action in its display—there’s an increasing theory that this technique is tailored to influencer culture, with hopes of creating organic viral marketing through user-generated content.

In the end, regardless of the framing decisions, *Hexed* could turn out to be an engaging film. Nonetheless, these stylistic choices reflect a wider trend in filmmaking, where the demand for social media interaction may undermine artistic authenticity in favor of potential virality. As short-form vertical video continues to rise, there are worries that this transition could weaken the essence of cinematic creation.

On a related point, the character designs in *Hexed* have been likened to generative AI outputs, raising issues about originality and uniqueness in upcoming projects. As audiences eagerly anticipate further news from Disney, especially regarding the forthcoming *Frozen 3*, there remains hope for a renewed focus on inventive storytelling and visual creativity beyond the limits of social media aesthetics.

The forecast looks like rain!

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The broil of ideas that make up Signet City have been growing in Gareth Damian Martin’s head for years and they’re about fit to burst. The creator of In Other Waters and Citizen Sleeper describes their new game as a first-person fungalpunk RPG, a game that draws inspiration from the history and culture of the northern England, the whalepunk tech of Dishonored‘s world, and lifts systems from cyberpunk tabletop game The Veil. But it’s as much a manifestation of projects they’re reacting against, as those they’re reverently lifting from.

We’ll get into all that, but put the highbrow, high concept references to the side for a moment. It’s maybe easier to think of Signet City as a bit like Monsters, Inc, but with more mushrooms.

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**Xbox’s Critical Demand for Successful Games: A New Strategic Approach Under Asha Sharma**

As Xbox embarks on a new chapter with CEO Asha Sharma at the helm, a definitive directive has surfaced: the gaming division needs to produce successful games at a significantly accelerated rate. Insights from *The Information* indicate that Sharma’s ambition is to reinvigorate the Xbox lineup by redistributing resources from underachieving studios and projects to concentrate more closely on significant franchises such as *Halo*, *Fallout*, and *The Elder Scrolls*. This strategic shift arises from Microsoft’s acknowledgment that to effectively compete in the gaming arena, it must leverage its most cherished and profitable titles.

### Resource Redistribution and Financial Limitations

The report suggests a stable development budget for the fiscal year 2027, indicating a reallocation of resources rather than an increase in financial backing. By scaling back on less successful pathways, Xbox aims to accelerate development timelines for its flagship franchises. For instance, it has been five years since *Halo Infinite* launched, and the pending *Halo: Campaign Evolved* is merely a remastered version, highlighting an urgent necessity for original content.

Additionally, *The Elder Scrolls VI* is reportedly still many years away, with *Fallout 5* anticipated to launch even later. Sharma’s initiative also aims to enhance *Minecraft*, which is falling behind rivals like *Roblox* concerning engagement and monetization.

### Corporate Structure and Future Perspectives

There are signs that Microsoft executives, including CEO Satya Nadella, have shown cautious endorsement for Sharma’s plans for resource reallocation, set to begin in July. However, the potential for an overall restructuring is on the horizon. This could involve converting Xbox into an independent subsidiary similar to LinkedIn or GitHub, forming a joint venture, or even divesting the division entirely. Future actions will largely hinge on the outcomes of Sharma’s strategic execution.

Experts agree that the success of these changes will be crucial in shaping Xbox’s long-term trajectory. If fruitful, it could strengthen Xbox’s standing in the gaming sector, but setbacks or limited advancement may prompt Microsoft to reevaluate its commitment to gaming altogether.

### Workforce Consequences

The restructuring is predicted to lead to considerable layoffs within Xbox, impacting numerous studios acquired during Phil Spencer’s leadership. While this mixed strategy intended to broaden Xbox’s Netflix-style subscription service was ambitious, it seems that Microsoft is now reverting to a focus on its conventional revenue-generating franchises.

Franchises such as *Halo*, *Forza Horizon*, and *Fallout* have demonstrated consistent success. The recent triumph of the *The Elder Scrolls IV* remake, which surpassed several newer titles, emphasizes the importance of established franchises in sustaining financial robustness.

### Upcoming Challenges

Despite these strategic transitions, substantial challenges persist. Accelerating game development in an environment where production costs are soaring poses a complex dilemma. Historically, Microsoft has encountered difficulties in delivering games timely with the quality required to engage audiences and earn accolades during major award cycles.

In a recent appearance on *Hard Fork*, Nadella stressed Sharma’s mandate to reevaluate priorities and regain fan confidence, asserting, “We must make this a sustainable business.” It’s evident that the pivot towards a more focused commitment to iconic franchises is a crucial move in redefining Xbox’s identity and securing its future in a competitive landscape.

As Xbox advances, the pressures of elevated expectations and the imperative to innovate remain critical, leaving fans both hopeful and anxious for the next generation of gaming adventures.

### Activist Investor Takeover Attempt at Kadokawa: Consequences for FromSoftware

The gaming sector is undergoing a notable transformation as activist investor Oasis Management initiates a takeover attempt at Kadokawa, the parent entity of FromSoftware, recognized for its highly regarded titles like *Elden Ring* and *Dark Souls*. This initiative targets the removal of Kadokawa’s CEO Takeshi Natsuno, primarily due to accusations of mismanagement, particularly concerning the association between FromSoftware and its publisher Bandai Namco.

#### Core Concerns Raised by Oasis Management

In a comprehensive presentation, Oasis Management contends that under Natsuno’s stewardship, FromSoftware is forfeiting considerable revenue potential by permitting Bandai Namco to oversee the publishing of its games. A notable instance cited is *Elden Ring*, which was published by FromSoftware domestically while Bandai Namco managed international markets. The statistics reveal that over 90% of the game’s sales transpired outside Japan, prompting Oasis to determine that Kadokawa has not sufficiently leveraged the game’s triumph.

Oasis underscores that the expanding capabilities of Kadokawa, coupled with the increasing trend of digital game distribution, render self-publishing a more feasible alternative than ever. The firm claims that Kadokawa’s former management strategies once incorporated self-publishing plans, which were subsequently abandoned, harming shareholder interests. They propose that if FromSoftware were to launch another significant hit like *Elden Ring*, the lack of self-publishing could once more lead to substantial value loss to outside publishing partners.

#### Obstacles of Self-Publishing

Although the allure of self-publishing exists, FromSoftware confronts specific challenges. The company completely owns the trademark for *Elden Ring*, enabling it to self-publish a possible sequel. However, franchises such as *Dark Souls*, *Demon’s Souls*, and *Bloodborne* are not entirely owned, necessitating negotiations with Bandai Namco and Sony for any new editions. This absence of control over its successful intellectual properties highlights the issues raised by Oasis: FromSoftware may not be positioned to optimize its financial prospects due to dependence on external allies for major titles.

Nevertheless, FromSoftware’s forthcoming project, *The Duskbloods*, is entirely owned by the company, potentially signaling a pivot towards self-publishing in the future. The development timeline for video games is also significant; prior commitments, such as the collaboration with Bandai Namco for *Elden Ring*, were established before Natsuno assumed the role of CEO, which constrains immediate alterations in publishing tactics.

#### Shareholder versus Creative Aspirations

The aims of Oasis Management bring forth inquiries regarding the equilibrium between shareholder returns and the creative independence of game developers. The firm has previously advocated for radical shifts in businesses, such as recommending that Nintendo transition to mobile free-to-play models. This history raises doubts about the feasibility of their suggested tactics for FromSoftware, as they may not correspond with the long-term aspirations of the company or the gaming community.

Moreover, fan apprehensions regarding the impact of an activist investor on creative processes are evident. Director Hidetaka Miyazaki has voiced a commitment to upholding the existing environment of creative liberty at FromSoftware. He emphasizes the significance of focusing on game development without excessive external interference, implying that any substantial leadership changes instigated by Oasis could disrupt the organizational creative flow.

#### Consequences for the Future

The resolution of this dispute and its ramifications for FromSoftware will become more evident at Kadokawa’s forthcoming general shareholders’ meeting on June 24, where a vote regarding Natsuno’s position will occur. The result will predominantly hinge on the ensuing leadership direction and the degree of Oasis’s impact over prospective management.

As the environment shifts, industry stakeholders and fans will keenly observe whether this activist initiative prompts a reorganization of how FromSoftware functions, in terms of both publishing and creative strategy, and if it ultimately boosts or impairs the company’s outlook in the competitive gaming landscape.

The shift from traditional to digital gaming has profoundly affected physical retail environments, with GameStop being one of the notably impacted companies. As shelves become more populated with toys and collectibles, such as Pokémon cards, the interest in owning physical games has diminished. The decline in physical sales has led GameStop to reconsider its business model, especially regarding its Pro Membership initiative.

At present, GameStop’s Pro Membership provides a 2% rewards system on purchases, enabling members to gather points that can be exchanged for discount vouchers. Nonetheless, a recent internal communication has disclosed that GameStop intends to discontinue this points system. Beginning July 15, 2026, new members will stop accumulating points, while existing members must renew their subscriptions prior to this deadline to continue earning points until they expire on August 15, 2026.

In spite of these alterations, the annual cost of the Pro Membership will stay at $25, even as the advantages decrease. Previously, members enjoyed a subscription to Game Informer, which is no longer part of the offering. This situation has raised alarm among employees regarding the practicality of promoting the membership to disgruntled customers, especially considering the difficulties in redeeming points via their point-of-sale systems.

As GameStop undergoes this transition, employees have voiced their discontent about the organization’s trajectory. They encounter heightened sales pressures while receiving compensation below market standards. Some staff members have proposed a boycott of the Pro Membership as an act of dissent against the recent changes, encouraging their peers to unite in withdrawing their support for the program to convey to management that the decision to abolish the points system was ill-conceived.

The circumstances at GameStop underscore the larger challenges faced by brick-and-mortar retailers in a progressively digital economy, compelling them to innovate or face extinction. As the company strives to shift towards new revenue avenues, both employee experiences and customer satisfaction seem to be more uncertain than ever. GameStop has not issued a public statement regarding these matters, leaving employees and members in a state of uncertainty about the company’s future path.

### Microsoft’s Takeover of Activision Blizzard and Its Effect on Xbox

In December 2023, Microsoft completed its landmark $70 billion takeover of Activision Blizzard, signaling a major transformation in the gaming industry. This acquisition established Microsoft as one of the foremost third-party publishers in the market, resulting in Xbox exclusives like *Sea of Thieves* being made available on PlayStation 5. Such moves aligned closely with the company’s objective of broadening its gaming repertoire and appealing to a wider audience.

#### The Hurdles Facing Xbox After the Acquisition

By 2025, even with a number of high-profile releases on Xbox and an increase in new titles for Xbox Game Pass, the success of these games did not correspond with strong sales figures. Specifically, *The Outer Worlds 2* faced challenges in achieving the sales needed to secure the future of the franchise. This pattern underscored broader problems within Microsoft’s gaming division, where both software and services recorded a 5% drop in revenue during the second and third quarters of the fiscal year. Microsoft’s CFO, Amy Hood, linked these difficulties mainly to declining sales of the *Call of Duty* series, especially between the launches of *Black Ops 6* and *Black Ops 7*.

The latest release in the series, *Black Ops 7*, encountered fierce competition from other multiplayer titles and did not reach high sales figures upon its release. It was not even listed among the best-selling games in April 2025, in stark contrast to its predecessor, which enjoyed much better sales within the same period.

#### The Tactical Shift and Market Response

The lackluster performance of *Call of Duty* has led to reevaluations within Microsoft, particularly about its pricing approach for Game Pass. After including *Call of Duty* titles in the service, Microsoft raised the Game Pass subscription fee to $30—a decision that backfired, resulting in a sharp decline in subscriber numbers. Xbox’s new chief strategist, Matthew Ball, reported a loss of millions of subscribers, underscoring the delicate balance Xbox must sustain between expanding its user base and managing content accessibility on Game Pass.

To stabilize subscriber figures, Microsoft revised its strategy by excluding new *Call of Duty* titles from Game Pass at launch and lowering the subscription price, although it stayed above pre-acquisition rates. This adjustment reflected a responsive approach to reduce subscriber attrition and attract new customers.

#### The Outlook for Xbox and Activision Blizzard

Looking forward, the fate of *Modern Warfare 4*, set for release later this year, will be crucial for Xbox’s path. Strong performance could rekindle interest in the *Call of Duty* franchise and restore faith in Xbox’s gaming lineup. On the other hand, if *Modern Warfare 4* underperforms amid intensifying competition from major titles like *Grand Theft Auto 6*, the consequences could be significant, especially for smaller games in Microsoft’s lineup.

Asha Sharma, the recently appointed Xbox CEO, acknowledged the obstacles ahead and underscored the necessity for improved funding and balancing of diverse gaming franchises to enhance competitiveness. Recognizing that *Call of Duty* is a pivotal element in Microsoft’s strategy, the company’s future funding priorities will be vital for navigating the changing gaming environment.

In conclusion, Microsoft’s acquisition of Activision Blizzard has resulted in major shifts in its gaming strategy, characterized by both opportunities for growth and challenges that could impact its core business. The dynamic nature of the landscape requires continual adjustments to both game offerings and subscription structures as Microsoft aims to leverage its newly acquired assets while sustaining subscriber growth and game viability.

In case you missed the opening night of this year’s Summer Geoffs, Like A Dragon/Yakuza devs RGG Studio’s Japanese history-hopping crime brawler Stranger Than Heaven got a release date. That was rather overshadowed, however, by the reveal that it’ll feature a digitally resurrected version of rapper Tupac Shakur. While not the first deceased face to be confirmed as featuring in the game, that honour went to Japanese actor Bunta Sugawara, Shakur’s inclusion naturally raised a lot of eyebrows. RGG boss Masayoshi Yokoyama’s now spoken in more depth about the decision to include Tupac’s likeness in a game about the origins of the Tojo Clan.

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