From Expansion to Efficiency: How Major Publishers Are Shifting Strategy

Top News Items            Industry News   - Weeks 11-12,  2025                            (March 16–29, 2025)

Recent developments in the video game industry indicate a continued shift among AAA publishers toward consolidating around established intellectual properties. This trend reflects both market pressures and increasing production costs, as publishers adjust their strategies to mitigate risk.

Industry Overview: Declining Risk Appetite Among AAA Studios

Many publishers are narrowing their development pipelines to focus on core franchises. High development costs, underwhelming performances of new IPs, and competitive pressure from indie and free-to-play titles have contributed to this trend.

While Microsoft appears to be investing in new IPs, other major players such as EA, Sony, Activision, and Ubisoft are prioritizing their most commercially successful titles.

Ubisoft Forms New Division for Three Key Franchises

Ubisoft has established a new subsidiary dedicated to Assassin’s Creed, Rainbow Six, and Far Cry. Backed by a €1.2B investment from Tencent, the unit is valued at $4B.

Ubisoft leadership states that the move is intended to deepen engagement around these franchises and drive broader innovation across the company. However, internally, the decision has raised concerns among teams working on other projects.

Assassin’s Creed Shadows Sees Strong Start

Released on March 20, Assassin’s Creed Shadows reported over 2M players in its opening weekend, outperforming recent franchise entries like Origins and Odyssey. GSD data placed the launch second only to Valhalla.

The title also introduced several technical enhancements, including ray-tracing and procedural weather systems, marking a step forward in Ubisoft’s use of next-gen hardware.

Nintendo Direct Highlights and Switch 2 Outlook

Nintendo’s March Direct featured 26 titles slated for 2025 release. While several anticipated games were shown, including Metroid Prime 4: Beyond, no details were shared about the upcoming Switch 2. A dedicated event is expected on April 2.

Tencent Reports Strong Fiscal Results

Tencent posted $92B in revenue for 2024, a 9% increase year-on-year. Domestic gaming revenue rose by 23%, while international revenue climbed by 15%, with mobile and live-service games as primary contributors.

GameStop Adopts Bitcoin

GameStop has approved Bitcoin as a treasury reserve asset. Following an initial rise in share price, the announcement of a convertible debt offering aimed at financing BTC purchases led to a decline in investor sentiment.

Additional Highlights

• Pokémon Go sold to Scopely in a $3.5B deal, including Niantic’s third-party portfolio.

• GDC 2025 recorded nearly 30,000 attendees and a rise in exhibitors.

• Xbox exclusives such as Forza Horizon 5 and Sea of Thieves continue gaining traction on PS5, with Indiana Jones and the Great Circle launching on April 17.

• LEGO announced a new line of Pokémon-themed sets arriving in 2026.

• Star Wars: Hunters, a free-to-play shooter, has been discontinued prior to its planned launch.