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Games Industry in Search of New Winning Combo at Gamescom 2025

Almost 335,000 people attended last year's Gamescom. Ina FASSBENDER / AFP/File
Almost 335,000 people attended last year's Gamescom. Ina FASSBENDER / AFP/File
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Games Industry in Search of New Winning Combo at Gamescom 2025

Almost 335,000 people attended last year's Gamescom. Ina FASSBENDER / AFP/File
Almost 335,000 people attended last year's Gamescom. Ina FASSBENDER / AFP/File

The global games industry gathers for the vast Gamescom trade fair in Cologne this week, with hopes that upcoming heavy-hitters like "GTA VI" can help the industry escape its doldrums.

Tuesday's opening night event will show off major releases slated for the months ahead, with the starring role going to "Black Ops 7" -- the new instalment in the sprawling "Call of Duty" saga, AFP reported.

Trade visitors will have Wednesday to peruse the stands and make connections, before tens of thousands of enthusiastic gamers are unleashed on the vast salon from Thursday to Sunday.

Last year's Gamescom drew almost 335,000 people to the Cologne exhibition center, where studios lay on vast stands with consoles or PCs offering hands-on play with the latest releases.

Nintendo is back in 2025 after staying away last year, surfing on record launch sales for its Switch 2 console.

And Microsoft's Xbox gaming division will show off new portable hardware expected to be released towards the end of the year.

Sony, the Japanese giant behind the PlayStation, has opted out this time around.

The mood is mixed for the roughly 1,500 exhibitors attending this year, as major publishers have recently steered back into profitability but the job cuts seen over the past two years continue.

In early July, Microsoft said it would lay off around 9,000 people, with hundreds leaving game studios like "Candy Crush" developer King and several games cancelled, including "Perfect Dark" and "Everwild".

Battle for attention

"The industry is consolidating quite a bit" after the bumper years when Covid-19 lockdowns created a captive audience, said Rhys Elliott of specialist games data firm Alinea Analytics.

Around 30,000 workers have lost their jobs since early 2023, according to tracking site Games Industry Layoffs -- more than 4,000 of them so far this year.

Revenue in the global games market should hold steady at just under $190 billion this year, data firm Newzoo has forecast.

The number of players and hours spent with the medium are stable while an ever-expanding number of titles are jostling for attention.

And with leviathans like "Roblox" or "Fortnite" swallowing the attention of hundreds of millions of monthly users, "everyone's fighting for a smaller share of that pie," said Circana expert Mat Piscatella.

The need to find new audiences has pushed Microsoft's Xbox, the biggest games publisher in the world, to switch strategy, increasingly offering its titles on competing console makers' hardware.

"They've had really great success on the PlayStation platform. Sony is making a bunch of money on that too," Piscatella said

"It's a little bit of a win-win all the way around."

Some PlayStation games are making the trip in the opposite direction, with "Helldivers 2" the first to be made available on Xbox as well as the traditional PC port.

Success on a budget

Shoring up sales is vital in an era where the cost of developing high-spec "AAA" games has mounted into the hundreds of millions of dollars -- exposing studios to massive risk should their games not perform as hoped.

But several breakout hits have recently shown that lower-budget games can still win over players with gameplay, story and art style, such as four-million-selling French turn-based battler "Clair Obscur: Expedition 33".

"There's a realization you don't need to spend masses of money to deliver a high-quality game that can appeal broadly and so everyone is rushing towards that model," said Christopher Dring, founder of industry website The Game Business.

But "for every 'Clair Obscur' success story, there are 10 games that fail to find an audience at all," Piscatella pointed out.

"It's hyper-competitive for those products outside of that big sphere" and smaller developers must fight hard for the funding they need to get games to market.

Nor is the cult-hit trend likely to displace the mega-budget mastodons.

Analysts predict that Rockstar Games' vast "Grand Theft Auto VI" could notch up the biggest launch for any entertainment product in history.

That might be the juice the flagging industry needs to regain some of its mojo.

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Technology

AI to Track Icebergs Adrift at Sea in Boon for Science

© Jonathan NACKSTRAND / AFP
© Jonathan NACKSTRAND / AFP
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AI to Track Icebergs Adrift at Sea in Boon for Science

© Jonathan NACKSTRAND / AFP
© Jonathan NACKSTRAND / AFP

British scientists said Thursday that a world-first AI tool to catalogue and track icebergs as they break apart into smaller chunks could fill a "major blind spot" in predicting climate change.

Icebergs release enormous volumes of freshwater when they melt on the open water, affecting global climate patterns and altering ocean currents and ecosystems, reported AFP.

But scientists have long struggled to keep track of these floating behemoths once they break into thousands of smaller chunks, their fate and impact on the climate largely lost to the seas.

To fill in the gap, the British Antarctic Survey has developed an AI system that automatically identifies and names individual icebergs at birth and tracks their sometimes decades-long journey to a watery grave.

Using satellite images, the tool captures the distinct shape of icebergs as they break off -- or calve -- from glaciers and ice sheets on land.

As they disintegrate over time, the machine performs a giant puzzle problem, linking the smaller "child" fragments back to the "parent" and creating detailed family trees never before possible at this scale.

It represents a huge improvement on existing methods, where scientists pore over satellite images to visually identify and track only the largest icebergs one by one.

The AI system, which was tested using satellite observations over Greenland, provides "vital new information" for scientists and improves predictions about the future climate, said the British Antarctic Survey.

Knowing where these giant slabs of freshwater were melting into the ocean was especially crucial with ice loss expected to increase in a warming world, it added.

"What's exciting is that this finally gives us the observations we've been missing," Ben Evans, a machine learning expert at the British Antarctic Survey, said in a statement.

"We've gone from tracking a few famous icebergs to building full family trees. For the first time, we can see where each fragment came from, where it goes and why that matters for the climate."

This use of AI could also be adapted to aid safe passage for navigators through treacherous polar regions littered by icebergs.

Iceberg calving is a natural process. But scientists say the rate at which they were being lost from Antarctica is increasing, probably because of human-induced climate change.

 

Technology

AMD Predicts Weaker First-Quarter Sales, Shares Plunge on Nvidia Comparisons

An AMD logo and a computer motherboard appear in this illustration created on August 25, 2025. (Reuters)
An AMD logo and a computer motherboard appear in this illustration created on August 25, 2025. (Reuters)
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AMD Predicts Weaker First-Quarter Sales, Shares Plunge on Nvidia Comparisons

An AMD logo and a computer motherboard appear in this illustration created on August 25, 2025. (Reuters)
An AMD logo and a computer motherboard appear in this illustration created on August 25, 2025. (Reuters)

Advanced Micro Devices on Tuesday forecast a slight decline in quarterly revenue, raising concerns about whether it ​can effectively challenge Nvidia in the booming AI market and sending its shares tumbling 8% in after-hours trade.

The lackluster prediction comes despite an unexpected boost from sales of certain artificial intelligence chips to China, which began in the last quarter after the Trump administration approved a license for orders that AMD received in early 2025.

And without those sales to China which generated $390 million, AMD's data-center segment would have missed estimates for the fourth quarter.

AMD said it expects revenue of about $9.8 billion this quarter, plus or minus $300 million. That's down from $10.27 billion in the fourth-quarter which was up 34% year-on-year and ahead of LSEG ‌estimates for $9.67 billion.

PALES ‌NEXT TO NVIDIA

Though AMD is seen as one of the ‌few ⁠contenders ​that can seriously ‌challenge Nvidia, investors noted the stark contrast between the two companies' performances. AMD expects an adjusted gross margin of 55% this quarter. Nvidia has said it expects adjusted gross margin in the mid-70% range during its fiscal 2027.

"The expectations for large blowout quarters for AI-related hardware companies have skewed what the market is looking for," said Bob O'Donnell, president of TECHnalysis Research.

The forecast for the current first quarter includes $100 million from sales to China, where the situation remains "dynamic," AMD CEO Lisa Su said on a conference call with investors.

The US government ⁠has placed restrictions on the exports of advanced chips to China, but AMD received licenses to sell modified versions of its MI300 series ‌of AI chips there. Its MI308 chip competes with Nvidia's H20 ‍chip in China.

OPENAI SALES

AMD has accelerated its ‍product launches and is moving into selling full AI systems to better compete against Nvidia, which now ‍provides "rack-scale" systems that combine GPUs, CPUs and networking gear.

Last year, it entered into a multi-year deal to supply AI chips to ChatGPT-owner OpenAI, which would bring in tens of billions of dollars in annual revenue and give the startup the option to buy up to roughly 10% of the chipmaker.

Su reiterated on Tuesday that the company ​expects sales of a new flagship AI server to OpenAI and others to rise rapidly in the second half of this year, saying a global memory-chip crunch will not ⁠slow its plans.

"I do not believe that we will be supply-limited in terms of the ramp that we put in place," Su said.

BEYOND OPENAI

As Big Tech and governments across the globe double down on investing in AI hardware, shares in Santa Clara, California-based AMD have doubled since the start of 2025, outperforming a 60% bump in the broader chip index.

But analysts remain concerned that AMD's success remains tied to a handful of customers that rivals such as Nvidia could try to poach. Reuters reported this week that Nvidia made a $20 billion move to hire most of chip startup Groq's founders after OpenAI held chip supply discussions with the startup.

"Growth appears concentrated in large deployments and specific regions, and China shipments are significant enough to influence a quarter," said eMarketer analyst Gadjo Sevilla.

Revenue in AMD's key data-center segment grew 39% to $5.38 billion in the ‌fourth quarter. But excluding sales of the MI308, which is a data-center chip, that revenue would have been $4.99 billion, below estimates of $5.07 billion.

Technology

Switch 2 Sales Boost Nintendo Results but Chip Shortage Looms

This photo taken on November 4, 2025 shows a woman taking photos of a Super Mario figure at the Nintendo Tokyo store in Tokyo. (AFP)
This photo taken on November 4, 2025 shows a woman taking photos of a Super Mario figure at the Nintendo Tokyo store in Tokyo. (AFP)
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Switch 2 Sales Boost Nintendo Results but Chip Shortage Looms

This photo taken on November 4, 2025 shows a woman taking photos of a Super Mario figure at the Nintendo Tokyo store in Tokyo. (AFP)
This photo taken on November 4, 2025 shows a woman taking photos of a Super Mario figure at the Nintendo Tokyo store in Tokyo. (AFP)

The runaway success of the Switch 2 console drove up Nintendo's net profit by more than 50 percent in the nine months to December, the Japanese video game giant said Tuesday.

But a global memory chip shortage, created by frenzied demand for artificial intelligence hardware, could push up manufacturing costs.

The Switch 2 became the world's fastest-selling games console after launching to a fan frenzy last summer.

It is the successor to the original Switch, which soared in popularity during the pandemic when games such as "Animal Crossing" struck a chord during long lockdowns.

Both are hybrid devices that can be connected to a TV or used on-the-go.

In April-December, net profit jumped 51.3 percent year-on-year to 358.9 billion yen ($2.3 billion), and revenue nearly doubled on-year to 1.9 trillion yen, Nintendo said.

But the firm kept its annual unit sales target for the Switch 2 steady at 19 million, and also held its full-year net profit forecast of 350 billion yen.

"Nintendo Switch 2 got off to a good start following its launch on June 5 and unit sales continued to grow through the holiday season," the company said.

Nearly 17.4 million Switch 2 devices were sold in the nine-month period, it added.

"Maintaining momentum is certainly a big focus for Nintendo," Krysta Yang of the Nintendo-focused Kit and Krysta Podcast told AFP.

A lack of heavy-hitting first-party new games for the Switch 2 in coming months risks hindering growth, although third-party titles such as "Resident Evil Requiem" should help fill the gap, she said.

Nintendo said Tuesday it planned to release "Mario Tennis Fever" this month and "Pokemon Pokopia" in March.

While the firm is diversifying into hit movies and theme parks, consoles remain the core of its business.

The Switch 1 has now sold 155.37 million units -- overtaking the Nintendo DS console to be its best-selling hardware of all time.

But soaring prices for memory chips, used in gaming consoles as well as phones, laptops and other electronics, will likely be a headwind for the company.

Their prices have been pushed up as chipmakers focus on producing the advanced memory chips in huge demand to power AI data centers.

"Nintendo and other console manufacturers are publicly keeping quiet about the impact of the shortage," gaming industry consultant Serkan Toto told AFP.

But "users can forget the past when consoles always became cheaper in tandem with component costs falling over time", with price hikes potentially on the way in 2026, he said.

Yang said she thought a price increase for the Switch 2 "is not out of the question" but added that Nintendo "would likely exhaust all other options" before doing so.