BioWare and Nagoshi Studio Close, Phantom Blade Zero Sells 4M

The week brings fresh signs of financial and staffing pressure across the game industry, with BioWare and Nagoshi Studio closing as Don’t Nod restructures and other developers face layoffs or funding risks +4. S-GAME’s Phantom Blade Zero sells more than four million copies in 72 hours, while Activision agrees to remove Itaewon crowd-crush footage from Call of Duty: Modern Warfare 4 after families object .

BioWare and Nagoshi Studio Close Amid Wider Studio Strain

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Reports link BioWare’s closure to EA’s reported decision to prioritize a new Star Wars: Battlefront game over Mass Effect 5; co-founder Greg Zeschuk called EA’s leveraged buyout the studio’s “final nail in the coffin” +1. Most of BioWare’s roughly 50 remaining employees were laid off, and a Mass Effect project was canceled .

Nagoshi Studio dissolved on October 31 after NetEase withdrew funding, leaving Gang of Dragon unreleased . Don’t Nod is restructuring to guard against insolvency as employees warn of potential layoffs and accuse management of illegal practices, while Raw Power Games says lost funding puts its Chronicles: Medieval studio at risk of closing before Early Access .

Staff cuts also affect Sucker Punch, where 24 layoffs are reported, and Auroch Digital, which plans to cut around a quarter of its workforce . Meanwhile, Rockstar Games employees in the UK are scheduled to vote on union recognition from November 12 to 26, a period that overlaps with the Grand Theft Auto VI launch window .

Xbox Hardware Revenue Falls 14% as Supply Limits Constrain Sales

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Microsoft’s FY27 Q1 results show Xbox hardware revenue down 14% year over year and content and services revenue down 2% . Xbox CEO Asha Sharma says console sales remain constrained by supply, with demand exceeding the number of consoles available .

Phantom Blade Zero Sells Four Million Copies in 72 Hours

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S-GAME’s Phantom Blade Zero launches on PC and PS5 and sells more than four million copies in its first 72 hours . The game also draws more than 430,000 concurrent players on Steam in its first hours, and its day-one update brings performance improvements alongside a warning about Nvidia drivers .

Activision Removes Itaewon Footage From Call of Duty: Modern Warfare 4

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Activision apologizes and says it will remove real footage of the 2022 Itaewon crowd crush from Call of Duty: Modern Warfare 4 after families of victims object to its use . The game’s Nintendo Switch 2 version also has noticeably worse input lag than the PS5 version, a potential disadvantage in multiplayer .

The Duskbloods Delayed as Witchbrook and Final Fantasy XIV Set Dates

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FromSoftware moves The Duskbloods, a Nintendo Switch 2 exclusive, from its planned 2026 window to 2027, citing further adjustments to its rules and balancing . Chucklefish’s Witchbrook is set to launch January 28, 2027, on Nintendo Switch, Nintendo Switch 2 and PS5, while Final Fantasy XIV: Evercold is scheduled for February 23, 2027 .

Nintendo’s Pikmin 4 Nintendo Switch 2 Edition launches November 12 with a new Dandori Academy mode, and its demo is due November 2 . Bethesda is also reportedly preparing a The Elder Scrolls VI title reveal as soon as November, with reports naming the game The Elder Scrolls VI: Sentinel .

Pokémon Unite Ends Service in March 2027

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The Pokémon Company and TiMi Studio Group will shut down Pokémon Unite on Nintendo Switch and mobile devices on March 23, 2027; in-game sales have already ended . The game’s final Aeos Crown competition is scheduled for two days before the shutdown, and a planned library feature will preserve access to some content .

Epic and Anthropic Set Different Rules for AI Game Development

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Epic Games is changing its Unreal Engine and MetaHuman EULA to allow AI training on content created with those tools, while giving developers the option to restrict that use for individual games . Epic also confirms it uses AI to develop code and features for Unreal Engine .

Anthropic, meanwhile, updates Claude Code’s guidance to prohibit copying or recreating a specific existing game while allowing original games and projects based on a user’s own designs and assets . The change addresses concerns about AI tools reproducing games and infringing intellectual property .