• Amazon's gaming boss thinks ballooning hardware prices could push more hardcore gamers towards cloud streaming services
• He argued that the price of consoles increasing by 'six, seven times' would mean some gamers become 'priced out of the market'
• He thinks the RAM crisis, and rising prices, will not be 'going away anytime soon'

Amazon GM of gaming Jeff Gattis thinks the rising cost of consoles and PC components could push more hardcore gamers towards cloud streaming, via services such as Amazon's own Luna.

In a recent interview about the service, I asked whether Gattis anticipates cloud gaming becoming a more popular option for core players as traditional systems become much more expensive.

"Yeah. I wouldn't have said that 18 months ago, and I will say our business model is not really predicated on this this massive shift where everybody turns in their consoles and PCs and comes over to cloud" he said.

"But gosh, when you start to see the prices of the Steam Machine and the rumors of PlayStation and Xbox. As you get to $1,000, $1,500 hardware [...] you're going to see more people that are priced out of the market. They're going to consider other technologies".

Gattis, who previously led platform and subscriptions at Xbox, went on to share an anecdote to illustrate just how much prices have risen.

"I was telling somebody the other day that when I was back at Xbox a couple of years ago, we had our Series S console on discount [for a] holiday. I think it was about $199. To think in a span of two to three years we've gone from $200 to what's likely going to be six, seven times that price.

"I understand it's a it's a RAM crisis, it's worldwide, but I don't think that's going away anytime soon."

He was, however, careful to clarify that hardcore gamers moving to the cloud isn't a core part of Amazon's strategy: "It's not our strategy to accelerate that, but it's a nice tailwind if it does happen, and it's realistic to think that it might."

The comments come as Amazon rolls out a Fire TV update that gives Amazon Prime subscribers the ability to stream games like Fallout 4 or Fortnite from directly within Prime Video via Luna in a bid to get more eyes on the service.

• Bethesda Game Studio has shared a major update
• The announcement confirms two Fallout remasters in addition to further Starfield support
• The developer is also teaming up with Obsidian Entertainment for a new Fallout title

Bethesda Game Studios has just shared a major update, confirming that it will continue supporting Starfield, and is currently working on remasters of both Fallout 3 and Fallout: New Vegas.

"We love making these worlds as much as you love playing in them. Today, we want to share what's next," begins the latest post on the Bethesda website.

It adds that the company is "investing more deeply in the worlds players love" — but what exactly does that mean?

First, the developer says its latest release, 2023's Starfield, will continue to receive updates and support throughout the coming year with gameplay improvements, new story content, and "additional updates" planned.

The popular Fallout series is also receiving plenty of love. Fallout 5 is currently in development, though it's still a "long-range destination" in the early phase of production that will likely take many years to complete. In the meantime, however, players will be able revisit the worlds of both Fallout 3 and Fallout: New Vegas in the just-announced remasters.

There's no word on when those will release either, but I imagine they're not too far away — particularly that Fallout 3 remaster, which has been rumored to be in the works for years.

The post goes on to confirm that Bethesda is partnering with New Vegas developer Obsidian Entertainment on a "new Fallout project". This is presumably the New Vegas sequel teased in reports earlier this month that suggested the two teams were collaborating on a new title.

Of course, upcoming RPG The Elder Scrolls 6 is also mentioned, and described as the studio's "primary development focus today." As expected, however, a release date is not mentioned, and the title is still likely half a decade away.

All of this comes just over a week after Microsoft announced that Xbox, Bethesda's parent company, would be undergoing the "most significant restructure" in its history with a total of 3,200 jobs lost over the coming months.

In an email sent to Xbox employees, CEO Asha Sharma said that while the move would be "painful" it would allow the brand to to focus on "higher priority projects" with its Activision, Bethesda, King, Mojang, and Xbox Game Studios teams — a strategy already evident in the high-profile releases announced today.

• Xbox has announced that it is undergoing a "significant restructure"
• This will include the loss of 3,200 jobs over the fiscal year
• This includes 1,600 job losses today

Microsoft has announced that Xbox is to undergo the "most significant restructure" in the brand's history, with 1,600 jobs being cut today, for a total 3,200 jobs going over the coming months including four studios being jettisoned.

In another crushing blow for the people who make the games we love, these layoffs were strongly rumored to be coming this week — the sheer scale was unknown but predicted to be big. It turns out that was true.

In an email sent to Xbox employees that has now been made public via Xbox Wire, Xbox CEO Asha Sharma began by saying, "After careful consideration, I’ve made the difficult decision to reduce our team by approximately 3,200 throughout FY27. This will include approximately 1,600 role eliminations today, and in addition, four studios will leave Xbox to new management."

Sharma added: "Our business today is not healthy. We are operating at margins that are 3-10x lower than comparable platform and publishing businesses. We entered Gen 9 with a smaller install base and a higher cost structure. To grow, we bet on Game Pass, multi-platform, and a broader portfolio of content. While those businesses have created meaningful value, they did not grow at the pace we expected."

As well as the total of 3,200 jobs going this fiscal year, four studios are also affected. Compulsion Games and Double Fine Productions are returning to being independent studios, while Ninja Theory and Undead Labs will gain new ownership with funding to complete their upcoming games, Senua and State of Decay 3.

Arkane — a studio many feared for in the run-up to this restructuring — is "beginning required consultation with its Works Council to review potential strategic options."

In a series of moves over the past decade or so, which has seen Microsoft acquire multiple studios, spend billions and billions of dollars, and make some curious decisions about Game Pass, prices, and more — all to take the brand from third in the console space to, well, third — this kind of feels like the bubble bursting before our very eyes. And the people who will pay the price will be the developers who make the games we all love playing.

• Rockstar Games has been accused of enabling crunch conditions through employee contracts
• Union members say there is a lack of transparency around pay and bonuses at the Grand Theft 6 studio
• The union accuses the studio of scrapping initiatives aimed at addressing gender-based pay inequity

Grand Theft Auto 6 studio and industry giant Rockstar Games has been accused of unfair working conditions that include enabling crunch culture, failing to address gender-based pay inequity, and weaponizing bonuses.

Three members of the Rockstar Game Workers Union (RGWU) spoke to Game Developer in a huge interview - though they wished to remain anonymous due to fear of reprisals - and claimed that the studio attempts to normalize crunch.

"Crunch is prevalent enough that the company built into our contracts, as standard, an opt out of the Working Time Regulations that stops your employer being able to ask you to do more than about 10 hours extra each week," one source explained, referring to the UK protection that can be voluntarily relinquished by employees.

"The union successfully ran a campaign to inform people they could opt back in to the regulations at any time, which resulted in Rockstar management simplifying the process and removing the obligation to meet with HR," the source added.

"Part of the problem with crunch is that there is not an agreed definition, and now it seems the company thinks that offering specific and limited compensation as an incentive for overtime means it no longer qualifies as crunch."

While some teams at Rockstar never crunch, it's claimed that there are also departments that "seem to never get out of it — and often colleagues do not realize the opposite group exists."

The interview also includes claims that workers were forced to return to the office and relinquish hybrid or remote work benefits, a mandate which allegedly didn't apply to company leaders, and there is a lack of transparency around pay and bonuses.

A "considerable portion" of most employees' compensation packages comes in the form of bonuses that fluctuate, often without obvious justification. It's claimed that the compensation workers receive falls below the market rate when compared to adjacent industry work, with one source saying, "When the bonus is particularly good, it can be a windfall, but often the bonus is disappointing and one can end up being paid considerably less than expected for the year.

"The reasoning given for this is often nebulous, inconsistent between departments, even inconsistent between team members within the same department, and sometimes hinges on completely subjective or retroactive criticisms."

It's said promotions are also hard to secure at the studio because Rockstar regularly shifts the goalposts when career progression is discussed.

"The main problem is that [bonuses and progression are] all completely discretionary for the company, and they are under no obligation to show their working," the source added. "Employees want good pay, and if literally anything they do that year could affect it, they will naturally feel they have to be as pliable as possible to their boss's whims. Imagine [how you might feel if] a fifth of your salary could be withheld without any justification or based on a single surprise factor."

Gender-based pay inequity is another issue that the union members discussed, informing Game Developer that the gap between median wages for different genders has widened at Rockstar and that initiatives aimed to address that imbalance have been scrapped.

Union workers say all these issues have created a sense of imbalance and injustice at the studio and feel that employees are not adequately compensated for GTA 6, which is set to be the biggest game launch of all time.

A Take-Two Interactive spokesperson provided a statement to Game Developer in response to the claims. It reads: "We strive to make the best games possible by giving our talented teams world-class work environments and ongoing career opportunities. We have fostered a culture which is focused on teamwork, excellence, and kindness, and where we support and reward the team across all levels of the business through competitive compensation and benefits policies.

"We are proud that as a result, our employee retention is well above the industry standard. We have received a request from a union seeking to discuss voluntary recognition. We value an open and constructive dialogue with all stakeholders and will arrange to meet."