Gaming

Nintendo cuts Switch 2 production, layoffs at Epic and PlayStation, and another Saudi acquisition - Patch Notes #45

· 5 min read

Plus: Crimson Desert sells 3 million copies and a love letter to 'girl games.'

What a week. It's impossible to reflect on the past few days without discussing the brutal layoffs at Epic Games. Over 1,000 people cast aside in the blink of an eye by a company that operates one of the most successful video games on the planet. Absolutely fiendish.

My thoughts on the matter can be summed up with a simple question: where is the accountability? At what point will we see an executive actually take responsibility for upending the lives of so many people? Yes, I'm looking at you Tim Sweeney.

Recent history suggests we'll be waiting an eternity for that day to arrive. Until then, it's worth remembering that is is impossible to work effectively in a pressure cooker of uncertainty and instability. That is what our industry has become. 

When I first started covering video games around a decade ago, word of layoffs at a major studio would have set alarm bells ringing. It would have been the Big Story of the month. Maybe even the year. Now, it's a Tuesday. 

Related:Split Fiction dev Hazelight Studios accrues 50M total sales

via Game Developer // Fortnite remains "one of the most successful games in the world." according to Epic Games CEO Tim Sweeney, but that will be small comfort to the over 1,000 workers the company laid off earlier this week. The cuts were purportedly made with the battle royale shooter in decline, but some estimates indicate that Epic still pulled in over $6 billion during 2025. Epic previously laid off around 900 people in 2023. Calamitous.

via Bloomberg // Saudi Arabia continues its rapid expansion into the video game industry this week. Savvy Games Group, which is owned by Saudi sovereign wealth fund PIF, agreed to acquire mobile studio Moonton for $6 billion. The company is known for working on titles like Mobile Legends: Bang Bang.

via Pearl Abyss // Open-world RPG Crimson Desert has shifted over 3 million copies in around five days. That's according to the latest numbers from developer and publisher Pearl Abyss. Anecdotally, that tracks, because that video game has been plastered over my Instagram reels for what feels like a lifetime. Praise the algo.

via Bloomberg // Nintendo is reportedly disappointed with how the Switch 2 is selling in the United States and has reduced its production output to 4 million units (down from 6 million) as a result. That's despite the console having already sold 17 million units globally.

Related:Black Tabby Games slinks into game publishing with 1000xResist creator's next game

via PC Gamer // Another PlayStation studio has been shuttered by Sony. This time, the victim is Dark Outlaw Games, the team established by former Call of Duty lead Jason Blundell back in 2024. Sony describe the closure as a "strategic adjustment" in a statement to PC Gamer. That's two shutterings in two months for the Japanese company, which also torched Bluepoint Games in February. 

via Game Developer // Three video game studios owned by French publisher Nacon have filed for insolvency. It's unclear what that means for employees at the trifecta of studios, with parent company Nacon having also filed for insolvency in February after failing to partially repay a bond loan.

via Game Developer // Nintendo-published titles will soon cost less on the Switch 2 if you opt for a digital purchase. The Japanese company said the change was made to reflect the "different costs associated with producing and distributing each format." Bad news if you were hoping to taste test every Switch 2 cartridge in existence. 

Related:Konami's eFootball tops 1 billion downloads

via Aftermath // "Games are doomed by femininity," writes Bee Wertheimer in this compelling essay about the sprawling boys club that is the video game industry, and how that tilt towards masculinity has embedded itself in everything from marketing to education and game design. A captivating read. 

Game Developer news editor Chris Kerr is an award-winning reporter with over a decade of experience in the game industry. His byline has appeared in notable print and digital publications including Edge, Stuff, Wireframe, International Business Times, and PocketGamer.biz. Throughout his career, Chris has covered major industry events including GDC, PAX Australia, Gamescom, Paris Games Week, and Develop Brighton. 

Laptop mishaps and a GDC chat with Owlchemy Labs CEO Andrew Eiche

How publishers can do better by devs (and still profit)

Copyright © 2026 Informa. This website is owned and operated by Informa. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG.