Top Stories

Mobile gaming has a new, and growing, measurement problem | Opinion (5 min read)

Mobile game publishers increasingly operate web stores outside Apple and Google's app stores to avoid 15–30% platform fees, making traditional revenue measurement unreliable. According to Appcharge analysis, 72% of top-grossing mobile games now run web stores; D2C revenue grew 26% year-on-year in the Americas in 2025. Public companies like Stillfront (39% D2C revenue) and Playtika (25%, targeting 40%) now derive significant income from direct-to-consumer channels invisible to standard industry tracking tools. (GamesIndustry.biz)

Amazon reportedly cancels Lord of the Rings MMO (2 min read)

Amazon has reportedly cancelled its Lord of the Rings MMO, according to sources familiar with the project. The cancellation followed October layoffs affecting Amazon's Games division. Jeff Gattis, Amazon's head of games, declined to confirm or deny the cancellation but stated the company is developing a "new game experience" within the Lord of the Rings universe. (GamesIndustry.biz)

Party Animals studio sparks fury with 'AI video contest,' apologizes, then makes things even worse by asking if it should hold the contest anyway (7 min read)

Recreate Games, developer of Party Animals, announced an AI video contest that drew immediate backlash from the community. The studio issued an apology but then asked followers on social media whether it should proceed with the contest anyway, further inflaming criticism. (PC Gamer)

Business & Finance

Nintendo president: Switch 2 price increases due to war on Iran and AI-driven memory crisis (4 min read)

Nintendo president cited component costs and geopolitical factors in justifying Switch 2's price increase. The company emphasized that hardware profitability would suffer significantly without the price adjustment. (Game Developer)

Square Enix FY26 operating income surges 34.9% despite net sales decline (3 min read)

Square Enix's FY26 operating income jumped 34.9% to record levels, boosted by strong HD Game sales including Final Fantasy Tactics and Dragon Quest remakes, despite net sales declining due to reduced MMO and mobile revenue. (GamesIndustry.biz)

'Your proposal is neither credible nor attractive:' eBay rejects GameStop takeover bid (3 min read)

eBay rejected GameStop's takeover proposal, calling it "neither credible nor attractive." The rejection marks the end of GameStop's acquisition attempt. (Game Developer)

Games & Releases

A PvE-only mode is coming to Marathon as Bungie lays out plans for seasons 3, 4 and 5 (5 min read)

Bungie announced a PvE-only mode coming to Marathon alongside plans for seasons 3, 4, and 5. The studio laid out its multi-season roadmap for the live-service shooter. (PC Gamer)

Garry Newman acknowledges Gmod successor S&box had a bumpy launch, but is baffled by the number of people complaining about NFTs, which aren't in the game: 'I have no idea what this s**t is about' (6 min read)

S&box, the Garry's Mod successor, had a bumpy launch. Creator Garry Newman acknowledged the rough rollout but expressed confusion over widespread community complaints about NFTs, which he says aren't in the game. (PC Gamer)

Culture & Community

Advocating for Godot: A report from A Maze Berlin | Opinion (6 min read)

A Maze Berlin's 15th edition showcased experimental indie games and installations, with the festival emerging stronger after a funding crisis. The article highlights how quickly indie developers have embraced Godot engine as a core part of the indie ecosystem. (GamesIndustry.biz)

gg! see you in game!

— james