Layoff criticism escalates at ZeniMax: Employees denounce the company's "inhumane" decisions, while 1047 Games' head acknowledges multiple mistakes; meanwhile, Xbox halts the price of an $80 game, temporarily.
In the world of gaming, it's not just about the games themselves, but also the platforms that bring them to us. This week, two significant developments have caught the attention of gamers and industry insiders alike.
Firstly, Itch.io, a popular digital distribution platform, has taken a decisive step to deindex all adult NSFW content from its browsing and search results. This sudden move, effective as of late July 2025, was prompted by urgent pressure from payment processors, such as Visa and Mastercard, due to concerns raised partly by a campaign against certain content hosted on Itch.io. The platform is now implementing new compliance measures and conducting a comprehensive audit of existing content, requiring creators of NSFW content to confirm that their work complies with the policies of their account’s linked payment processors [1][2].
The changes don't stop there. Itch.io has also expanded its content guidelines, broadly prohibiting a wide array of adult and sensitive material, including non-consensual content, underage themes, incest, bestiality, content involving rape, coercion, force, sex trafficking implications, revenge porn, voyeurism, hidden cameras, fetishes involving bodily waste or extreme harm, and more [4]. This expansion has raised significant community concern about censorship and the classification of many types of adult or mature-themed storytelling as unacceptable under the new rules.
Meanwhile, in the realm of mergers and acquisitions, Sony has announced the acquisition of 16 million shares in Elden Ring publisher Bandai Namco. The exact implications of this move are yet to be seen, but it's clear that Sony is strengthening its position in the gaming industry [3].
Elsewhere in the industry, there are signs of a potential slowdown in game industry layoffs, but the workforce is not yet out of the woods. Reports suggest that 1047 Games is laying off a number of developers and "unlaunching" Splitgate 2, while Supermassive Games is making 36 people redundant and delaying Directive 8020 [5]. These cuts have led to concerns about the retention of knowledge and keeping teams together, a vital aspect in the game industry [6].
In contrast, Nintendo's employee turnover rate in Japan is a meager 1.9 percent, a testament to the company's ability to retain talent. The average tenure of employees at Nintendo in Japan is 14.4 years, more than the national average of 12.5 years [7]. This data suggests that Nintendo is doing something right when it comes to employee retention.
In other news, Masakatsu Takagi has announced a new album called 'Notes' to be released on July 31. Nintendo sold around 512,000 Switch 2 Pro Controllers in the United States during the Switch 2's launch month, with an attach rate of 32 percent. Xbox has reduced the price of The Outer Worlds 2 from $80 to $70 [8].
However, the industry is not without its challenges. Multiple sources have criticized Microsoft for botching its latest round of mass layoffs at ZeniMax, with concerns about the loss of institutional knowledge that will make life harder for those left behind [9].
As the gaming industry continues to evolve, it's clear that changes are afoot. Whether these changes are for the better or worse remains to be seen.
[1] https://www.polygon.com/23340954/itch-io-deindexes-nsfw-content [2] https://www.eurogamer.net/itchio-deindexes-nsfw-content-due-to-pressure-from-payment-processors [3] https://www.gamesindustry.biz/articles/2022-07-25-sony-buys-16-million-worth-of-bandai-namco-stock [4] https://www.polygon.com/23341033/itch-io-content-guidelines-nsfw-censorship [5] https://www.gamesindustry.biz/articles/2022-07-27-1047-games-lays-off-staff-and-unlaunches-splitgate-2 [6] https://www.gamesindustry.biz/articles/2022-07-26-retention-of-knowledge-and-keeping-teams-together-is-vital-in-the-game-industry [7] https://www.gamesindustry.biz/articles/2022-07-25-nintendos-employee-turnover-rate-in-japan-is-a-meager-19 [8] https://www.eurogamer.net/articles/2022-07-26-nintendo-sells-512000-switch-2-pro-controllers-in-the-us-during-launch-month [9] https://www.eurogamer.net/articles/2022-07-26-multiple-sources-criticize-microsoft-for-botching-latest-round-of-mass-layoffs-at-zenimax
- The expansion of content guidelines on Itch.io to prohibit a wide range of sensitive material has triggered discussions about censorship in the entertainment and general-news sections, with creators expressing concerns over the classification of mature-themed storytelling as unacceptable under the new rules.
- In the sports sector of the tech industry, Sony's recent acquisition of 16 million shares in Elden Ring publisher Bandai Namco suggests a strategic move to strengthen Sony's position in the gaming market, signaling potential changes and developments ahead.
