The Biggest Gaming News Of 2024: Xbox's Evolution, Shutdowns, And A Dearth Of GTA 6 And Switch 2

2024 is coming to a close.

2024 is all but over, and it was momentous, with major storylines, game releases, and trends cementing their place in another busy year for gaming. But what were the biggest news events for the year? No list could possibly be complete or perfect, but we're spending some time looking back at the year that was and putting together a rundown of the biggest news of 2024.

One of the biggest storylines of 2024 is a continuation of one from 2023: layoffs, studio closures, and other challenging news for the people who make games. Layoffs and closures rocked the video game industry in 2024, with some estimates putting job losses in 2024 alone to more than 11,000. This occurred as major industry players like Microsoft, Sony, Nintendo, EA, and others reported massive revenue and profit in some cases.

Other storylines and events in gaming from 2024 included Disney making a huge Fortnite deal with Epic, a video game actors' union going on strike, Palworld having a huge launch and quickly attracting the wrath of Nintendo, the abject failure of a PlayStation exclusive, the creeping influence of AI in game development, and an inflection point for Game Pass with Black Ops 6 launching into the catalog this past October.

Read on to see all the biggest gaming news of 2024. In case there are any last-minute major announcements for 2024 to come in the final weeks of the year, we'll update this post.

Layoffs and closures continue

2024 was an especially challenging and distressing year in terms of the human element of making games. Layoffs once again rocked the wider video game industry, with companies like Microsoft and Sony cutting numerous positions. Microsoft, for its part, laid off more than 2,500 people in the past year following its buyout of Activision Blizzard. These cuts included the closure of Arkane Austin and Hi-Fi Rush developer Tango (though that studio and IP would go on to be saved by PUBG company Krafton). Sony, meanwhile, cut more than 900 staff and enacted mass layoffs and significant reorganization efforts at Bungie following the acclaimed launch of Destiny 2: The Final Shape.

Other developers who enacted layoffs this year citing market conditions and other factors included Riot, Unity, Discord, Twitch, Eidos Montreal, Sega, EA, Take-Two, and more. How did we get here? The answer isn't straightforward, but there are a number of contributing factors. If there is a bright spot, it could be that video game industry layoffs in the second half of 2024 declined compared to the first half of 2024 and the second half of 2023. That's good news, but those baselines are also the "worst in history," according to researcher Matthew Ball.

Whether or not 2025 will be any different in terms of these trends is unknown, and many remain concerned about the potential for generative AI to take more jobs away.

Disney invests $1.5 billion into Epic

The so-called metaverse continued to blossom in 2024, or at least the foundations for one specific one. In February, Disney announced that it was investing a further $1.5 billion into Epic Games (on top of a previously announced funding round) to create a Disney metaverse inside Fortnite. It remains to be seen when this might happen or what the partnership could entail, but one possibility that some are theorizing is that Disney would, in essence, create a virtual Disney World inside Fortnite. A teaser video for the Disney/Epic partnership alludes to a possibility like this, and Disney fans are excited about the potential for characters from their favorite franchises----from Rey to Woody and even Mickey Mouse----to come together in one giant playscape. Of course, Disney and Epic are already in business together through their previous partnerships around franchises like Star Wars and Marvel, but what's planned here is understood to be something bigger, bolder, and more bespoke.

"We should never rest on past success. We should always look for the next big idea, the next big challenge," Disney boss Josh D'Amaro said about its Fortnite deal. "If we'd always relied on what worked in the past, the Walt Disney Company might not exist today. As consumer preferences continue to shift, we have to adapt, or we are going to be left behind."

Concord launches, gets removed immediately

After years of development, Sony's newest exclusive, the multiplayer shooter Concord from developer Firewalk, launched in August 2024. However, the game failed to find an audience--on launch day, it peaked at 697 concurrent players on Steam, a figure which doesn't include PS5 players but does speak to the apathy surrounding the game. This led Sony to make the dramatic decision to remove the game from sale and offer refunds less than two weeks after launch. Sony was reported to have spent $200 million on the game, and that doesn't include the fee that the company paid to acquire Firewalk outright. In addition to shuttering the game, Sony also closed Firewalk itself.

Concord having such a short life was a shocking development, especially considering Sony once had ambitious plans for the live-service market. However, those plans have since been scaled back, with Sony halving the number of live-service games it had previously planned to release. PlayStation boss Hermen Hulst said "certain aspects" of Concord were "exceptional," but "others did not land with enough players," which prompted the decision to shut down the game and close the studio. Hulst also mentioned how the PvP first-person shooter genre is a "competitive space that's continuously evolving," and Concord simply did not resonate.

Despite Concord closing down, the franchise will live on in a way through the Prime Video TV video game anthology series Secret Level, which has an entire episode dedicated to the game.

Game Pass Evolves

2024 may have been the biggest and most important year for Microsoft's Netflix-style gaming subscription service, Game Pass. This culminated with the launch of Call of Duty: Black Ops 6 into the Game Pass catalog at the end of October. Prior to launch, many industry-observers made predictions and commented on how launching such a big game into a subscription service could change video-game-industry dynamics. It remains to be seen how it all shakes out, but in the near-term at least, it seems to have worked out for Microsoft.

The company, which paid $75.4 billion to buy Activision Blizzard and the Call of Duty franchise, reported that Black Ops 6 helped drive the single biggest-day for Game Pass sign-ups. Additionally, Black Ops 6 broke three-day and 30-day engagement records for the series. Microsoft has not, however, revealed how many copies Black Ops 6 has sold and how Game Pass might have eaten into that. We may never know.

Prior to Black Ops 6's release on Game Pass, Microsoft-as many predicted-raised the price of Game Pass Ultimate to $20/month. The company also killed off the $1 Game Pass trials just before Black Ops 6's release, to prevent people from effectively paying a small fee to try it.

Game Pass underwent significant changes in 2024, as Microsoft reworked the subscription's tier-based system. Game Pass was originally pitched to consumers as a single subscription they could sign up for to get new games on day one. But it is no longer that. Due to changes made in 2024, only Game Pass Ultimate ($20/month) subscribers and PC Game Pass ($12/month) members get all new games at launch. The new Game Pass Standard tier ($15/month) and Core ($10/month) do not include all day-one launches.

Also in 2024, Microsoft expanded the benefits of Game Pass by allowing Game Pass Ultimate subscribers to stream select games they own, whether or not they're in the Game Pass library. The launch lineup of supported titles is relatively small but is expected to grow over time as Microsoft builds out this feature.

Another significant development for Game Pass in 2024 was a marketing campaign from Microsoft centered around not needing to buy an Xbox console to play Xbox games. The "This Is an Xbox" campaign was pushed out to remind people the phone in their pocket or their computer screen, or numerous other devices connected to the internet, can play Xbox games thanks to streaming. Streaming is available through Game Pass Ultimate, so once again, this effort is being undertaken to promote Game Pass with the aim of giving Microsoft the ever-precious recurring revenue stream it so desires.

SAG-AFTRA voice actor strike

Members of the SAG-AFTRA union went on strike against video game companies in late July----after some 18 months of negotiations----and, as of December 2024, the strike remains ongoing. Union members are seeking improvements to base pay and protections against the use of artificial intelligence in game development going forward. Games that were in development prior to September 2023 (like GTA 6) are exempt, as are live-service titles like Fortnite. This is the first SAG-AFTRA strike for video game actors since 2016, when the work stoppage lasted for about one year.

The key sticking point between the union and gaming giants like Warner Bros., Activision, Disney, and others appears to be regulation of generative-AI technology.

The actors' union says protections against AI are necessary because, without them, game companies could train AI to replace human talent. "We strike as a matter of last resort. We have given this process absolutely as much time as we responsibly can. We have exhausted the other possibilities, and that is why we’re doing it now," SAG-AFTRA chief contracts officer Ray Rodriguez said, as reported by The Associated Press.

For its part, the video game publisher representative, Audrey Cooling, said the video game companies have offered "meaningful AI protections." Cooling added, "We are disappointed the union has chosen to walk away when we are so close to a deal, and we remain prepared to resume negotiations."

SAG-AFTRA actors covered by the strike include more than 2,500 performers who do things like voiceover, motion capture, and stunts, along with singers and dancers, among other jobs.

In January, SAG-AFTRA signed a controversial agreement with AI-voice-software company Replica Studios. The agreement, which essentially approved AI voice acting in video games, was criticized by voice actors, many of whom claimed they were never consulted about the agreement.

GameStop closes Game Informer

The legendary, long-running video game magazine, Game Informer, was shut down by parent company GameStop in August. The magazine's first issue was published in 1991 during the 16-bit era, and the magazine steadily grew and evolved over the decades.

"After 33 thrilling years of bringing you the latest news, reviews, and insights from the ever-evolving world of gaming, it is with a heavy heart that we announce the closure of Game Informer... Thank you for being part of our epic quest, and may your own gaming adventures never end," ownership said in a statement (which was released without the knowledge of staff).

Workers at the magazine were laid off immediately----even though the next issue was 70% finished----and received severance pay. Game Informer's final issue, #367, was published in June. Related to the magazine's closure, the Game Informer website was taken down as well, including its archives.

Editor-in-chief Matt Miller wrote a heartfelt goodbye message, celebrating the magazine's legacy. He said, "The outpouring of affection, support, and appreciation the team has received in recent days [following the magazine's closure] is humbling, it has reminded me how much this long-running magazine has meant to so many."

Game Informer was acquired by GameStop in 2000 and was one of the most recognizable and enduring gaming media brands out there. GameStop never disclosed a specific reason for closing Game Informer, but CEO Ryan Cohen implemented a cost-cutting mandate to help the company navigate its uncertain future, and the closure could have been related to that.

GameStop was once among the biggest video game retailers in the world, and while the brand name remains recognizable, the company's earnings and profits have slumped in recent years. That being said, the 2021 short-squeeze situation boosted GameStop's share price to record highs. And while the stock price has fallen since, it remains up by nearly 2,000% in the past five years.

Palworld success/Nintendo lawsuit

2024 got off to a blazing start with the launch of Palworld in January. Developed by Pocketpair and colloquially referred to as "Pokemon with guns," Palworld put up massive player and sales numbers upon release for PC and Xbox in January (thanks in part to Game Pass), and the game only grew bigger when it debuted on PlayStation in September. The game's success prompted many to wonder if Nintendo and The Pokemon Company might take aim at the project, and that is indeed what happened. In September, Nintendo and The Pokemon Company launched a lawsuit against Palworld, but not necessarily for the reasons you might expect. The companies didn't go after Palworld for any visual similarities to Pokemon, but rather over patent-infringement claims. Analysts and experts have suggested Nintendo is going after Palworld on the grounds of "lawfare." Experts believe Nintendo understands it cannot make the case that Palworld's characters are too similar to Pokemon's, so Nintendo and The Pokemon Company are trying to stop Palworld by accusing Pocketpair of inappropriately using covered patents.

Analyst Serkan Toto believes Nintendo is simply acting as a "cold-blooded business" and is trying to stop a game from competing with its own.

"I think that the profit margin is probably sky-high for Palworld and I think that Nintendo didn't like that one bit and said, 'Look, they're basically stealing our character designs,'" Toto said. "'We cannot do anything about this. So let's screw them with other things, like... patents that are very, very technical.' The patents are not listed yet, so we don't know which patents. We don't know which patents Nintendo is actually talking about, but I bet with you already today that it's going to be highly, highly technical things."

Indeed, that proved to be true, as Pocketpair later disclosed the specific patents that Nintendo and The Pokemon Company allege that Pocketpair is infringing upon.

The three Japanese patents in question are No. 7545191, No. 7493117, and No. 7528390. All three were registered earlier this year. Instead of going after Palworld for its Pokemon-like creatures, the patents appear to be centered around the mechanics of throwing a ball at characters, riding characters in the game, and shooting at targets.

The lawsuit is asking for an injunction against Palworld (which means stopping sales of the game), plus 5 million yen (which is roughly just under $33,000 in American dollars) payments--with late fees--to both Nintendo and The Pokemon Company.

Despite the ongoing lawsuit, Pocketpair is pushing ahead with its Palworld expansion plans, teaming up with Sony for a merch line and announcing a partnership with Terraria.

Hardware

2024 might not have been a year in which any new consoles debuted, but there were still numerous pieces of gaming hardware introduced. Perhaps the most notable hardware release of 2024 was the PS5 Pro, which launched in early November priced at an eye-watering $700 USD (that scaled to above $1000 in Australia). A more powerful version of the PS5, the PS5 Pro followed Sony's playbook for a mid-gen refresh, as the company also launched a PS4 Pro during that platform's lifecycle. Many balked at the PS5 Pro's $700 price tag, but the system was never aimed at the masses. Sony said the PS5 Pro was for a small sub-set of the PlayStation community who want the newest and very best piece of plastic. And there is a simple reality in gaming today: Some people will pay more. When Sony reported earnings in later November, the company said the PS5 Pro's price tag was not a barrier to sales. PS5 Pro updates for existing games generally offered welcome improvements, but some games turned out looking worse (and fixes are on the way).

While Sony pushed ahead with its own mid-gen PS5 refresh, Microsoft did not do the same. Microsoft Gaming CEO Phil Spencer openly questioned the idea of a mid-gen Xbox refresh, and even had some words seemingly directed at Sony over its expensive PS5 Pro. "We're not going to grow the market with $1,000 consoles," he said. Of course, Sony is the market leader and Microsoft is running in third place, behind both Sony and Nintendo. Every business operates differently and has its own unique objectives. And while Microsoft doesn't necessarily need anyone to buy an Xbox to be an Xbox customer, the company remains dedicated to making Xbox consoles in the future. In fact, the company is now working on a new platform that aims to offer the "largest technical leap" in Xbox history, whatever that means.

2024 was also a busy year for rumors about new hardware. A report revealed the first information about the PlayStation 6, and how Intel lost out on a potentially massive deal with Sony to have its chips power the company's next console. Instead, if the report is to be believed, Sony will stick with AMD to power the next PlayStation console. Then there was a report about a new portable system to play PS5 games. Speaking of portable gaming devices, Microsoft, too, is said to be working on an Xbox handheld device that would pair with its next home console.

And in a completely unexpected hardware development, Nintendo announced and launched an… alarm clock in October 2024. When people woke up to the news that Nintendo made a hardware-related announcement, few could have predicted it would be an alarm clock for single people. The alarm clock is available now for Switch Online subscribers and will become available for everyone to buy in early 2025.

Also in 2024, handheld-style PCs reached a new level of popularity, with the Asus ROG Ally, Steam Deck, Lenovo Legion Go all facing new competition from the Acer Nitro Blaze 7, MSI Claw 8, Zotac Zone, Ayaneo 3, and more. Coupled with the rumors about new PlayStation, Xbox, and Nintendo handhelds, it seems like 2025 could continue and grow this trend of playing games on the go with a powerful, dedicated device.

Major Embracer changes

Embracer, one of the biggest gaming companies out there, added numerous games and studios to its roster during the pandemic when interest rates were low and spending on games surged. Embracer was making so many acquisitions at the time that it became something of a joke about being "embraced" by the company. However, after Embracer lost a multi-billion deal with a party later revealed to be Saudi Arabia's Public Investment Fund, the company's fortunes quickly changed. Due in part to this deal falling apart and other factors, Embracer went on a massive cost-cutting initiative that resulted in at least 29 games being canceled and more than 1,400 people losing their jobs. Defending these drastic changes, Embracer CEO Lars Wingefors said the company's mission is to "maximize shareholder value," even if it means cancelling games, closing studios, and laying off staff. For what it's worth, Embracer previously took $1 billion from Saudi Arabia and defended that decision when people criticized Saudi Arabia's position on human rights.

As part of the major changes at Embracer, the company announced it was splitting into three distinct companies: Asmodee, Coffee Stain and Friends, and Middle-earth Enterprises and Friends. These names, which (apart from Asmodee) are not final, will exist as separate and publicly listed companies from Embracer Group. CEO Lars Wingefors insists that the fact that Embracer is going away (in name only) has nothing to do with the company's many and numerous controversies and bad press. Time will tell how Embracer fares going forward, but the early results are not positive.

A year of waiting

2024 was full of big news, announcements, and reveals, but it was also a year--like many before it--marked with a lack of news on a number of high-profile video games and products. Rockstar's Grand Theft Auto 6 was a complete no-show in 2024 (at least as of the date this post was published). The game's first trailer debuted in December 2023, and in the year that followed, Rockstar didn't say a peep or show anything at all about the highly anticipated open-world game. People, including a former Rockstar developer, have made the argument that intentionally holding back news might be a form of marketing unto itself. By not talking at all about the game, that creates a level of mystery and intrigue as fans pore over the smallest clues looking for any morsel to latch onto. With GTA 6 officially lined up for release in Fall 2025, the floodgates are due to open soon as Rockstar and Take-Two ramp up the marketing machine, but 2024 was a year marked by waiting.

Much the same can be said for Nintendo's next console, the Switch 2. Nintendo wasn't completely silent on the subject, though, as Nintendo president Shuntaro Furukawa made a number of business-focused announcements about the system, including that the company will officially reveal it by the end of the company's fiscal year (March 31, 2025). That at least gave fans a timeframe to look forward to in terms of a big reveal. Nintendo also confirmed the Switch 2--or whatever name the company gives to the system--will be backwards compatible with original Switch games. Or at least some of them. Nintendo has not gone into specifics as of yet, instead telling fans to sit tight for now until the company is ready to share more.

While official announcements were scant, 2024 had plenty of big leaks and reports about the Switch 2. Many are expecting it to be an evolution of the Switch and carry forward the hybrid setup, and this seemed to track with purported production images of the console. Supposed images of the Switch 2's new Joy-Cons also appeared online, showing a more ergonomic design, but not a radical change from the original controllers. With many expecting the Switch 2 to launch in 2025, plenty more information about the console should arrive soon.

Other games that we heard almost nothing about in 2024 included Metroid Prime 4: Beyond, Beyond Good & Evil 2, the Star Wars: Knights of the Old Republic remake, Everwild, and--you guessed it--Hollow Knight: Silksong.