Top Stories

Everything you need to know from State of Unreal 2026: Unreal Engine 6, Unreal Engine 5.8, and $1bn paid to UEFN devs (5 min read)

Epic formally unveiled Unreal Engine 6 at State of Unreal 2026, targeting early access by end of 2027. UE6 moves gameplay programming to Verse, enables content and code portability across games and engines via open standards, and integrates AI tools like Claude and Gemini as development multipliers. Unreal Engine 5.8 is now available with MegaLights, Audio Insights, Dataflow for Chaos Cloth, and optimized shader compilation that cut Fortnite's shader count by 68%. Lumen now supports 60 fps on Nintendo Switch 2. Epic has paid $1 billion to UEFN developers. (GamesIndustry.biz)

UK employment tribunal denies Rockstar's request to have 'blacklisting' claims removed from upcoming trial (2 min read)

A UK employment tribunal rejected Rockstar Games' request to remove blacklisting allegations from an upcoming trial brought by 34 fired workers represented by the IWGB Game Workers union. The trial runs September 10 through October 15. Rockstar dismissed the staff in October 2025 for "gross misconduct" after they discussed studio Slack policy changes in a closed Discord server; the company claimed confidential information was leaked. The union accused Rockstar of union-busting, and the case now proceeds with all claims intact. (GamesIndustry.biz)

Report: Xbox was set on splitting with Ninja Theory when unveiling its new project (4 min read)

Microsoft reportedly planned to sunset or split with Ninja Theory while unveiling its new game Senua at an Xbox showcase on June 7, according to Game File's anonymous source. The strategy was to use the game announcement to draw investor interest in the studio before the separation. Bloomberg separately reported that studio heads at Ninja Theory, Double Fine, and Compulsion Games are negotiating to spin off as independent companies as Xbox prepares to close less-profitable development teams. Employees have been permitted to seek jobs elsewhere, and successful spinoffs could still result in layoffs without Microsoft's ongoing support. (Game Developer)

Studios & People

OtherSide Entertainment cuts 17 jobs after Argos cancellation (1 min read)

OtherSide Entertainment laid off 17 staff after cancelling in-development project Argos, citing 'brutally challenging' industry conditions that made the game 'unviable for now.' The studio released multiplayer title Thick as Thieves shortly before the cuts. (GamesIndustry.biz)

Returnal director will be 'responsibly ambitious' to ensure his new studio prospers (7 min read)

Returnal director Harry Krueger founded indie studio Cosmic Division in May 2026 to build gameplay-first experiences with a 'lean and mean' philosophy. Krueger emphasized prioritizing game design over ego and recruiting strong team chemistry to punch above budget constraints. (Game Developer)

Games & Releases

The devs of Chinese hit The Scroll of Taiwu on what Western devs get wrong in China - and why they rejected generative AI (7 min read)

The Scroll of Taiwu, a multi-million-selling wuxia RPG, launches in English after nearly eight years in Early Access. ConchShip Games founder Zheng Jie discusses the studio's decision to reject generative AI for artwork, citing creative integrity concerns, and reflects on the evolving Chinese game market. (GamesIndustry.biz)

Guild Wars 3 mission statement: no pay-to-win, no subscription fees - "The lines between an MMO and a live-service game have blurred" (5 min read)

ArenaNet released Guild Wars 3's design philosophy, committing to no pay-to-win mechanics, no subscription fees, and no paid battle passes. The studio aims to evolve the MMO genre by solving player frustrations with modern games. (Eurogamer)

Policy & Labor

Dispatch Developer Addresses Controversial Switch Censorship With New Patch — Though 'Some Hard Requirements From Nintendo' Remain (2 min read)

AdHoc Studio released the HR Violations Pack for Dispatch on Switch, unlocking nudity options and offering pixelated and jort-based censorship alternatives. Nintendo's requirements still ban genitalia and muted audio in certain scenes, with full censorship remaining in Japan. (IGN)

gg! see you in game!

— james