At Capcom Open Conference RE: 2026, programmer Satoshi Ishida presented "The Outlook and Future of the 'REX' Project," discussing plans to integrate AI into the next-generation RE engine to ease development tasks. The comments were misrepresented by much of the gaming press and social media as Capcom turning the engine into a system built for generative AI games. REX, short for "RE neXt Engine," has been in development since at least 2023.
According to Windows Central's Jez Corden, Microsoft plans to invest more heavily in Battle.net as a PC platform, with Asha Sharma saying its user retention is nearly as good as Steam's. Microsoft wants to support Battle.net's existing community while bringing more first-party and select third-party games to it, with The Witcher 3 as the first major third-party addition. Microsoft also plans to simplify Xbox's publishing tools and APIs, and Sharma said Xbox will keep investing in other PC storefronts including Steam as long as they reach distinct audiences.
Xbox chief shoots down rumored backdoor to playing Grand Theft Auto 6 on PC at launch https://www.pcgamer.com/games/grand-theft-auto/for-a-moment-it-looked-like-grand-theft-auto-6-might-be-playable-on-pc-on-launch-day-then-xboxs-chief-strategy-officer-crashed-the-party/
Capcom to evolve in-house RE Engine for "the AI generation", to help with development, testing, and checking for bugs https://www.eurogamer.net/capcom-re-engine-ai-generation-game-engine-rex-project
After completing its acquisition by Saudi Arabia's Public Investment Fund, Silver Lake, and Affinity Partners, Electronic Arts still faces creditors over previously issued bonds. The consortium borrowed $20 billion from JPMorgan as leveraged debt, which could weaken EA's credit profile and cost it its investment grade rating. According to The Wall Street Journal, one group of bondholders is seeking 101 percent repayment on two $750 million tranches totaling $1.5 billion, while EA is converting its bonds into assets resembling U.S. Treasury securities by splitting principal and interest.
The Coalition studio head Mike Crump responded to reports of staff layoff concerns, saying the team should focus on what it can control: shipping a great game. He called Gears of War: E-Day a "great foundation" for future games and said the next game will not take nearly as long to make. Eurogamer had reported internal worry that layoffs would hit The Coalition after E-Day's release, amid nearly 2,000 cuts at Xbox this financial year.
Former Activision-Blizzard CEO Bobby Kotick is joining the board of directors at Skydance, alongside investor Laurene Powell Jobs. The appointment follows Paramount's completed takeover of Warner Bros. as part of their $111 billion merger. Kotick led Activision-Blizzard until the end of 2023, when its acquisition by Microsoft was completed.
Google has rolled out Playground, a browser-based AI platform that lets users create, play, and share custom games, labeled as an experiment and supported by Unity Spark. Google says it lowers the barriers to creation with no coding experience required, but the initial rollout feels underwhelming, with cover art often misleading compared to actual gameplay. The option to make your own game for Playground is reportedly rolling out to people "soon."
Paramount Games Studio and Warner Bros. Games will merge into a single unit under Skydance, overseen by Tony Driscoll. The merger follows the completion of a $111bn acquisition.
Why this: Paramount Games Studio and Warner Bros. Games will merge into a single unit under Skydance, showing readers how the two publishers' operations will be consolidated.
Paramount has completed its $111 billion acquisition of Warner Bros. Discovery, with both companies now operating under the Skydance name. According to a memo obtained by Variety, Paramount and WBD's games and experiences divisions will merge to oversee projects based on both companies' IP, led by Paramount Games Studio president Tony Driscoll. Paramount Games Studio was established this summer and is led by EVP and head of games Dan Prigg, combining Paramount's IP with Skydance Interactive and Skydance New Media.
A PlayStation homebrew developer known as Zer0Day used AI to reverse-engineer GoldHEN, a closed-source PS4 homebrew tool, and published it on GitHub, claiming he has "the right to freedom of speech and freedom of expression." GoldHEN is primarily designed by Sistro with several maintainers and took roughly five years to build. The incident comes as forks of the PS5 emulators KytyPS5, SharpEmu, and AnyPS5 on GitHub grew from roughly 1,300 to roughly 1,840.
Bobby Kotick has been named to the board of the newly formed Skydance Corp., which now controls both Paramount and Warner Bros., though no direct management role in either company's gaming divisions was announced. Skydance confirmed that its recently announced Paramount Games Studio will merge with Warner Bros. Games, with the combined division reporting to Tony Driscoll. Big projects in the works include Hogwarts Legacy 2 and a new Batman: Arkham-style game from Rocksteady Studios.
State of Decay 3 developer Undead Labs has left Xbox Game Studios to become an independent, employee-owned studio. Studio boss Philip Holt told The Game Business that nothing went wrong, and that he proposed a management-led buyout which Microsoft accepted, since the studio was close to revenue and could raise the remaining funds for State of Decay 3 itself. He also said the game was announced back in 2020 partly to keep the project and studio on Microsoft's radar during its acquisition spree of publishers like Bethesda and Activision Blizzard, with a small team working on it since then.
Undead Labs has spoken out after rebuying its independence and leaving Xbox last month, with studio boss Phillip Holt saying State of Decay 3 needs some changes because of the layoffs, though he does not expect a dramatic scope change. The game is in alpha with a closed group of testers, has a vague 2027 release window, and will still launch on Game Pass day one. Holt also explained the 2020 reveal was meant to keep the studio from being swallowed up or divested, and said the series has reached 25 million players.
Call of Duty: Modern Warfare 4's latest DMZ trailers have left players confused about the existence of a PvE-only mode
Undead Labs has spoken about its split from Xbox. The studio said it has to make some changes to State of Decay 3 following layoffs.
Undead Labs, now independent from Xbox Game Studios, says State of Decay 3 will still launch day one on Game Pass in 2027. Studio boss Philip Holt said State of Decay 2's success and high retention on Game Pass built a large playerbase and franchise fans. He added that the game's biggest investment is four-player co-op shared world, making Game Pass's large audience a growth vector.
Confusion as Erroneous Reports Claim Xbox Has Exclusive GTA 6 Cloud Streaming Rights https://www.pushsquare.com/news/2026/10/confusion-as-erroneous-reports-claim-xbox-has-exclusive-gta-6-cloud-streaming-rights
More Sources Say Sony Really Is 'Accepting Game Pitches' on Fan Fave Franchises
Google announced Google Playground, an experimental platform for making, sharing, and playing games built with generative AI tools. Google says users need no coding experience and can direct games through a conversational interface, with browser-based play on phones and laptops. Unity separately announced Unity Spark, a tool built to work with Playground.
Unity announced a strategic partnership with Google to launch Unity Spark, a prompt-based development tool for Google's AI platform Playground, letting developers start from a text prompt and skip coding while connecting to the Unity Asset Store and Google's leaderboard, matchmaking, and community features. Unity CEO Matthew Bromberg said the goal is not one-shot generation but helping people with creative ideas build experiences worth polishing and sharing. Developers can try Playground today, and the piece notes ongoing industry concern about generative AI and Steam's disclosure requirement for AI tools or content.
X user jaivin used AI to make a Minecraft clone called "Tweetcraft" playable inside X/Twitter posts, with anyone who opens a world's link joining the same real-time multiplayer session. Jaivin said Tweetcraft uses none of Minecraft's assets and is not associated with Mojang or Microsoft, and is selling in-game sponsorships with cryptocurrency; the launch post has 7.4 million views. October has already seen GTA 5 and the original Halo made playable in a browser, with the GTA 5 clone hit by a takedown.
The US Pokémon Center website has marked the Mega Evolution—Ascended Heroes Elite Trainer Box listing as "Invite-Only," suggesting a new wave of restocks may be coming. The program lets selected newsletter subscribers in the US, Canada, and the UK get a unique, single-use invitation link, with limited supplies on a first-come, first-served basis. According to TCGplayer data, sealed Ascended Heroes ETB cases were selling for as high as $1,762.61, putting individual ETBs just over $176.
Asha Sharma reportedly informs staff that Xbox has "started to return to growth" during internal town hall
Unity unveils a web-based AI game creation platform https://bit.ly/3WbfyXm
Unity announced Unity Spark, a browser-based generative AI game creation tool running on the Unity engine, set to enter beta later this year, letting users design and iterate on 3D games through text prompts without downloads. It is tied to Google's new Playground platform, where projects can be published, and is limited to users aged 18 and over. At launch, projects cannot be downloaded or exported to the desktop Unity engine, nor sold, and payment will use a credit system tied to AI tokens with details not yet finalised.
Jagex has pulled the trailer for its upcoming RuneScape quest Dragon Slayer 2 after players spotted what appeared to be AI-generated art, including a knight with six fingers and another seemingly wearing modern trainers. Marketing director Alec Sween said in a statement on the official RuneScape Reddit that the trailer was produced by a trusted external partner who had explicitly confirmed generative AI would not be used, and Jagex apologised while investigating. Sween said this was the second such incident with a trusted partner in quick succession, and that Jagex will overhaul its review processes immediately after RuneFest and work with community creators on Dragon Slayer II.
Xbox CSO Matthew Ball clarified that reports claiming Xbox has exclusive cloud streaming rights to GTA 6 are incorrect, stating the game will not be streaming exclusively or to PC. He confirmed GTA 6 will launch on Xbox on 19th November. The Verge has since edited its original report, and it remains unclear whether Xbox CEO Asha Sharma misspoke during a townhall or the outlet simply misreported.
After Paramount's $111 billion acquisition of Warner Bros. Discovery, Warner Bros. Interactive will merge with the newly formed Paramount Games Studio to oversee projects based on Skydance's newly acquired IP library, including Avatar: The Last Airbender, South Park, Mortal Kombat, Game of Thrones, Star Trek and DC Comics IP. The new division will be led by Tony Driscoll, president of games and experiences at Skydance, and will house studios such as Avalanche Software, NetherRealm Studios, Rocksteady Studios and TT Games. It remains unclear what the division's future plans are or how hard it will be hit by layoffs.
Denuvo has asked the US District Court for the Northern District of California for permission to subpoena Discord, Valve and Reddit to determine the real identity of the cracker it is suing, voices38. The complaint lists 26 games, saying voices38 bypassed Denuvo Anti-Tamper, including Resident Evil Requiem, Stellar Blade, Black Myth Wukong, Pragmata and Hogwarts Legacy. Denuvo says Discord did not reply to its earlier request, while Valve and Reddit said their privacy policies prevented them from sharing the information without legal backing. Separately, Tom's Hardware reports that a group called DenuvOwO, which released cracks for dozens of Denuvo-affected games, has disbanded, reportedly citing the court case.
Xbox CEO Asha Sharma reportedly told staff at an internal town hall that Xbox has started to return to growth after an all-time low, at more than two to three times its previous level. She said first-party had returned to growth and user engagement had stabilised after declines earlier this year, citing strong launches for Gears of War: E-Day, Minecraft Dungeons 2 and World of Warcraft Forever. She also reiterated plans to evolve Game Pass into a more flexible system and said next-gen hardware Project Helix will be a family of devices rather than a single console.
Resident Evil Requiem writer Haris Orkin said in an interview that the upcoming DLC will further explore Oswell E. Spencer's story arc. A DLC expansion for the game has been confirmed, but no release timing has been announced. Spencer is the founder and CEO of Umbrella, and Requiem reveals that protagonist Grace Ashcroft is his adopted daughter.
Resident Evil Requiem writer Haris Orkin teased that the game's new story DLC will shed even more light on Oswell E. Spencer, though Capcom has not revealed when it will be out or what it's about. Orkin said Requiem already gives Spencer an arc, and the DLC will let players understand it further. In Requiem, Spencer is portrayed more sympathetically, having adopted a baby girl named Grace in 2001 and developed the antiviral Elpis.
Microsoft chief strategy officer Matthew Ball denied a report that Xbox had secured an exclusive cloud streaming deal for GTA 6 at launch, calling it misreporting. He said Xbox looks forward to launching GTA 6 on November 19, but the game will not be streaming exclusively or to PC. The Verge had cited sources saying Xbox CEO Asha Sharma's tease about doing something no other platform holder is doing referred to that deal, which could have offered a way to play on PC before a native port. Rockstar has still not confirmed if or when a PC port will arrive.
https://GamesIndustry.biz will host a panel during Game Republics Investment Summit at MCM Comic Con later this month
Resident Evil Requiem screenwriter Haris Orkin said in an interview at Meadowlark Comic Con that he is working on DLC for the game, with plans to flesh out Oswell E. Spencer. He also discussed writing villains and FBI analyst Grace, adding, "I probably shouldn't say that, but yeah." Director Koshi Nakanishi had confirmed plans for a major story expansion in March.
"There is not one device that fits all."
Eurogamer reports that Asha Sharma said Xbox has started to return to growth after drastic restructuring and many hundreds of layoffs. She described the earlier period as an all-time low for the business.
According to a transcript seen by Windows Central, Xbox CEO Asha Sharma told an internal town hall that Xbox has started to return to growth after wide-ranging restructuring and more than 1,800 job losses, at two to three times its previous level. She named Gears of War: E-Day, Minecraft Dungeons 2 and World of Warcraft: Forever as recent releases with strong starts, and said earlier declines in hours played, players and revenue had stabilised. On Game Pass she said the previous strategy sent profitability into freefall, and she reaffirmed Project Helix as a family of devices while hinting at another handheld beyond the ROG Ally X.
Undead Labs boss Philip Holt says there is still capital in the games industry, but investors are sitting on the sidelines waiting for obvious slam dunks, with labour costs a key concern. He noted the studio is based in Seattle, one of the most expensive places to make games, and that investors scrutinised its unit cost of labour. Last month Undead Labs bought its independence back from Microsoft via a new holding company, Full Measure, with layoffs following; Holt says State of Decay 3 has seen some changes and is still aiming for release next year.