"It's another edition of Morning Checkpoint, Kotaku's daily roundup of gaming news, rumors, and culture. I'm still bummed about yesterday's report that The Outer Worlds franchise is essentially on ice after last year's entry struggled to sell. It's an exceptionally solid immersive sim RPG that feels like it's on the verge of being something truly special. But those 30-percent profit margins on games given away for free on Game Pass are a killer."
"The Mario maker's share price in Japan dropped 11 percent this week over worse-than-expected profitability despite the Switch 2 continuing to be a launch-year juggernaut. Fans might think the concerns stem from questions about the new device's mixed year-one lineup, but Bloomberg reports that it comes down to worries about increasing production costs and pressure from U.S. tariffs. But it's not the only video game stock getting crushed."
Nintendo experienced a steep stock decline after Metroid Prime 4 underperformed, prompting investor concern over reduced profitability, rising production costs, and U.S. tariff pressure despite strong Switch 2 hardware sales. Multiple Japanese and global gaming companies saw share-price drops amid market turbulence and fallout from Google's Genie AI rollout. The Outer Worlds franchise is effectively stalled following weak sales and slim Game Pass profit margins. Hope exists that Black Myth: Wukong appearing on Switch 2 could boost momentum. Longtime Assassin's Creed level designer Luc Couture departed Ubisoft Montreal after more than twenty years.
Read at Kotaku
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