Xbox Growth, Kotick at Skydance, Aion 2 Misses Forecast

Xbox says it is growing again. Bobby Kotick has a new boardroom to sit in. And NCsoft's shiny new MMORPG did fine, but apparently not fine enough for the analysts. It's been a busy stretch for the business side of multiplayer gaming, so let's work through the headlines one at a time.

Xbox claims it is out of "free fall"

Asha Sharma, the CEO in charge of Xbox, recently held an internal town hall with staff. According to the report, she told them the brand has "started to return to growth."

That's quite a change in tone. Sharma had previously described Xbox as being in "free fall." Now she says the business has "[grown] more than two to three times what we were, and we expect that to continue." She singled out first-party titles as a key part of that growth.

The phrasing is a little muddled, and no detailed figures came with it. The good news also sits awkwardly next to the bad. Thousands more job losses are still expected for game developers, and a more upbeat town hall doesn't change that. For the people actually making the games, "return to growth" is a hard line to celebrate.

Kotick lands at Skydance

Bobby Kotick, the former Activision Blizzard boss, is back on a board of directors. This time it's Skydance, the company created by the recently completed $111B merger between Warner Bros. and Paramount.

Skydance CEO Larry Ellison was full of praise for the appointment. "Bobby led a global entertainment company through three decades of sustained growth, and he brings real perspective on building enduring franchises and connecting with fans," Ellison said.

Kotick's years at Activision Blizzard were controversial with many players and developers, so not everyone will share Ellison's enthusiasm. Either way, one of gaming's most recognisable executives now has a say at one of the biggest media companies around.

Aion 2 is "decent," which isn't enough

NCsoft, the South Korean publisher behind Lineage and Aion, has seen its earnings forecast lowered. Part of the reason is the global launch of Aion 2, according to Jaemin Ahn, an analyst at South Korea's NH Investment & Securities.

Going by machine-translated statements, Ahn called the MMORPG's global release "decent." He added that "it is difficult to conclude that it significantly exceeded market expectations." That verdict led to a slightly lower projected earnings estimate.

It isn't all gloom, though. Ahn still expects Aion 2 to bring in a sizeable amount of revenue over the next three months. This is very much an investor's view, where meeting expectations can count as a letdown. For players, a game that is earning solid money is not a game in trouble.

Fireshine picks up Necesse's developer

Fair Games, the studio behind the 2-D survival sandbox Necesse, has been acquired by Fireshine Games. The deal followed Necesse's 2.5M sales, and Fireshine now effectively acts as the game's publishing partner.

Fireshine says it will "add key long-tail support to the PC title and its millions of players." The developers have also posted on Steam to reassure fans. Development and updates will continue, they say, and updates might even get a little bigger.

"[W]e're just going to have more time to do that, as Fireshine will be helping out with a lot of the larger time consuming tasks such as publishing and porting," the announcement reads.

Journey veterans raise $35M for Gardens

Finally, a new studio founded by former developers of Journey and Sky: Children of the Light has raised money. Gardens Interactive secured $35M in Series B funding, a later-stage investment round, with Lightspeed Venture Partners among its backers.

The cash will go toward Gardens, which the studio describes as a multiplayer "social roleplaying strandbox." The pitch is a world "where what you do stays behind for whoever passes through next, where the consequences of your actions can be felt by those you may never meet, and where players can deepen their bonds in a multitude of ways."

Anyone who played Journey or Sky will recognise that idea of quiet, indirect connection between strangers.

The Bigger Picture

Taken together, these stories show an industry where money is moving in very different directions. Xbox talks about growth while more layoffs loom. Huge media mergers keep producing new boards for familiar names. Meanwhile, smaller studios like Fair Games and Gardens Interactive are finding backing for focused multiplayer ideas.

The Aion 2 note is the one MMO players should watch most closely. NCsoft is already growing its live portfolio, with Throne and Liberty moving to NCsoft next month, and a "decent but not spectacular" verdict suggests investor pressure could shape how the company handles its games. It is worth watching whether that pressure leads to more aggressive monetisation in Aion 2 or simply more patience. Early player numbers, such as Aion 2 passing 400K Steam users, look healthy. The next quarter should show whether the analysts or the players had the better read.