Today’s Top Gaming News: Sony’s Profit Surge, AppLovin’s AI Initiatives, Crytek’s Layoffs, and More

February 13, 2025

Sony Increases Profit Forecast Amid Strong Gaming Performance

Sony has raised its operating profit forecast for the fiscal year ending March 2025 by 2%, now anticipating 1.34 trillion yen ($8.70 billion), following Reuters. This adjustment is attributed to robust results in its gaming division, which experienced a 37% increase in quarterly profit. The surge is driven by heightened PlayStation 5 sales and a reduction in hardware losses. Additionally, PlayStation Network’s monthly active users have risen by over 10%, reaching 129 million. The company’s music segment also contributed positively, with increased revenue from streaming services. Hiroki Totoki, set to become CEO on April 1, has been pivotal in enhancing profit margins. Sony also announced plans to repurchase up to 30 million shares, totaling approximately 50 billion yen.

AppLovin’s Stock Surges Following AI Initiatives and Gaming Unit Sale

AppLovin Corp.’s stock experienced a significant boost, climbing 29.2% in extended trading, following MarketWatch. The company revealed plans to sell its mobile gaming division for $900 million and provided an optimistic revenue forecast. For the first quarter, AppLovin anticipates revenue between $1.355 billion and $1.385 billion, surpassing analyst expectations. This projection marks a milestone, with advertising revenue expected to exceed $1 billion in a single quarter for the first time. The sale comprises $400 million in the buyer’s stock and $500 million in cash. AppLovin also highlighted advancements in AI to enhance personalized advertising and hinted at potential ventures into connected-TV advertising. CEO Adam Foroughi emphasized the potential for improved consumer engagement through AI-driven personalization. In the fourth quarter, the company’s revenue grew by 44% year-over-year, reaching $1.37 billion, exceeding analyst estimates.

Crytek Announces Layoffs and Pauses ‘Crysis 4’ Development

Crytek has laid off approximately 15% of its 400 employees, affecting both development teams and shared services, following The Verge. This decision follows the suspension of “Crysis 4” development in the third quarter of 2024, reflecting the challenging market conditions in the gaming industry. The company is now focusing on “Hunt: Showdown 1896,” a multiplayer extraction shooter, to ensure financial stability. Despite these changes, Crytek remains confident in its future and is committed to the success of “Hunt: Showdown 1896.” These layoffs are part of a broader trend in the industry, with significant reductions reported across various companies in recent years.

Steam Introduces Warnings for Potentially Abandoned Early Access Games

Steam has implemented new notifications to alert customers about early access games that may have been abandoned by developers. Early access allows developers to release incomplete games to gather funds and feedback. While some projects, like “Baldur’s Gate 3” and “Hades,” have been successful, others have been discontinued without completion. The new warnings display the duration since the last developer update on early access game pages, assisting consumers in making informed purchasing decisions.

Netflix Cancels Six Upcoming Game Titles Amid Portfolio Adjustment

Netflix has announced the cancellation of six forthcoming video game titles as part of a strategy to realign its gaming portfolio with subscriber interests. Despite offering a library of over 100 free mobile games to subscribers, the company has observed underutilization of this feature. The canceled titles include “Compass Point: West,” “Don’t Starve Together,” “Lab Rat,” “Rotwood,” “Tales of the Shire: A Lord of the Rings Game,” and “Thirsty Suitors.” These games remain available on other platforms such as PS5, Xbox, Steam, and Nintendo Switch. Netflix’s decision reflects a shift towards developing more successful tie-in games, like “Squid Game: Unleashed,” which achieved millions of downloads.

New Minecraft Attraction Set to Open in London

Minecraft enthusiasts in the UK can anticipate an immersive experience with the launch of “Minecraft Experience: Villager Rescue” in London on April 4, 2025, following The Sun. Situated at Corner Corner in Canada Water, the attraction features seven themed rooms and a 45-minute interactive quest. Participants, guided by characters Tobin and Dayo, will use the ‘Orb of Interaction’ to save a village from zombies. Developed collaboratively by Experience MOD, Mojang Studios, and Microsoft, tickets became available for presale on February 12 and for general sale on February 14. Future plans include additional Minecraft-themed attractions in the UK and US, such as potential theme park rides and city center venues by 2026-2027.