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Pixel P&L: AI to Replace Developers? EA's $55B Deal Hinges on Automation Savings

Pixel P&L: AI to Replace Developers? EA's $55B Deal Hinges on Automation Savings

AFK Gaming Editorial
October 02, 2025

Welcome to another Pixel P&L edition. This issue takes 5 minutes to read. If you only have one, here are the 5 most important things:

Electronic Arts investors are betting on AI to manage $20B in debt from its $55B buyout.
Ubisoft's Tencent-backed subsidiary officially launches as Vantage Studios, taking control of Assassin's Creed and Rainbow Six.
Xbox revamps Game Pass with a new three-tier structure, pushing Ultimate to $30/month.
Realme partners with Mobile Legends for the M7 World Championship in Jakarta.
Funcom cuts jobs despite Dune: Awakening becoming their fastest-selling game ever.

Let's get into it.

EA Investors Bank on AI to Manage $20 Billion Debt Load

Electronic Arts is going private in a $55 billion acquisition that saddles the videogame publisher with $20 billion in new debt, with investors betting artificial intelligence can slash expenses to help service the burden.

People familiar with the transaction told the Financial Times that backers are counting on AI-driven savings to boost profitability at the maker of Battlefield and The Sims franchises. Specifics remain murky, though the plan has sparked fears about potential job cuts and AI replacing human developers.

EA Chief Executive Andrew Wilson has championed the technology, calling it "the very core of our business" last year. But employees and fans worry the debt load could trigger layoffs or compromise beloved titles like Mass Effect.

The deal, expected to close early 2027 pending regulatory approval, marks a pivotal moment for the gaming giant as it navigates unprecedented financial pressure while promising "operational excellence" and creative innovation.

Ubisoft's Tencent-Backed Unit Launches as Vantage Studios

Ubisoft's subsidiary backed by Tencent began operations Wednesday under the name Vantage Studios, the company told staff.

The unit, which oversees Assassin's Creed, Far Cry, and Rainbow Six franchises, will operate under co-CEOs Charlie Guillemot and Christophe Derennes with full creative and business autonomy. Employees selected the Vantage Studios name through a vote, replacing the internal codename "Nova."

Tencent holds a 25% stake following its €1.16 billion investment announced earlier this year, but will serve only in an advisory role. The subsidiary encompasses development teams in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia.

Ubisoft described the launch as part of a broader shift toward decentralization through "Creative Houses," giving teams greater control and faster response to player feedback. The structure aims to improve single-player experiences while expanding multiplayer content and free-to-play offerings.

Guillemot previously led mobile studio Owlient before rejoining Ubisoft this year, while Derennes is a 35-year company veteran who formerly headed the Montreal studio.

⚡️Quick Bytes

Realme Named Official Phone Partner for Mobile Legends M7 Championship

Realme announced its 15 Pro smartphone as the official device for Mobile Legends: Bang Bang's M7 World Championship, set for Jakarta in January 2026. The tournament will feature 22 teams competing across four stages from January 3 to 25. Mobile Legends was 2024's most-watched mobile esports title with 475 million hours viewed, according to Esports Charts.

Xbox Revamps Game Pass with Three-Tier Structure, Ultimate Price Jumps to $30

Microsoft restructured Xbox Game Pass into Essential, Premium, and Ultimate tiers, adding Fortnite Crew and Ubisoft+ Classics to the top plan while raising its monthly price to $29.99 from $16.99. Ultimate now includes over 75 day-one releases annually and enhanced cloud streaming at 1440p. Premium subscribers gain access to 200-plus games across console, PC, and cloud for $14.99 monthly.

Funcom Cuts Staff After Dune: Awakening Launch

Funcom announced layoffs following the June release of Dune: Awakening (via GI.biz), its fastest-selling game that reached one million players within two weeks. The Oslo-based studio, owned by Tencent since 2020, said it is restructuring teams to focus on live operations and a planned 2026 console launch. The developer did not specify how many employees would be affected by the cuts.

⚔️Side Quest

📺 Watch: India's real money gaming ban looked like a crisis, but Lumikai Fund saw it coming. In a conversation with yours truly, the fund’s co-founder and managing director Saloni Sehgal reveals why this "reset" is actually accelerating India's gaming evolution, drawing parallels to Finland's Nokia-to-Supercell transformation. Essential viewing for anyone tracking India's interactive media future and emerging founder ecosystem.

🎮 Play: CloverPit offers satisfying roguelike slots with diverse builds and clever charm mechanics. While symbol effects don't stack and telephone options can feel repetitive, it scratches the Balatro itch wonderfully. Perfect for roguelike newcomers, though veterans may question long-term replayability. The RNG feels fair, even if 666 haunts you more than unusuals.

📚 Read: Bloomberg's Jason Schreier tackles gaming's fascinating paradox—too many excellent games, yet the industry's in crisis. With nearly 19,000 Steam releases in 2024 alone, even great titles vanish in the flood. A must-read for understanding why "quality" no longer guarantees success in today's oversaturated market.

💡Did You Know

When it comes to graphic novel sales in bookstores, DC and Marvel aren't even close to being the "Big Two." That title belongs to Viz Media (the manga powerhouse) and Scholastic (publisher of Dog Man and The Baby-Sitters Club graphic novels).

In 2023, Viz and Scholastic dominated the book channel market, combining for a whopping 42% of all graphic novel sales. Meanwhile, DC and Marvel together earned just 7.6% of sales, less than half of what Scholastic alone brought in.

Perhaps most surprising: Marvel-licensed titles published by other companies significantly outsold Marvel's own publications. A Spider-Man manga from Viz sold 50,000 copies, while Marvel's top-selling title moved only 12,000 copies.

The bestselling graphic novels of 2023 were overwhelmingly aimed at kids and featured no traditional superheroes. Dav Pilkey's "Dog Man: Twenty Thousand Fleas Under the Sea" topped the charts with over 1 million copies sold, about 50 times more than DC's bestseller.