Pixel P&L: Netflix’s AI Bet, Ubisoft Layoffs, Roblox Ban in Iraq

Welcome to another Pixel P&L edition. This issue takes 6 minutes to read. If you only have one, here are the 5 most important things:

• Netflix embraces AI as a filmmaking efficiency tool, using it for de-aging and VFX in recent productions.

• Ubisoft offers voluntary buyouts to employees in its latest cost-cutting measure as the gaming industry downsizing continues.

• EA Sports FC 26 topped September revenue charts but failed to crack the top 10 for active users.

• Iraq joins Turkey and China in banning Roblox over child safety concerns and cultural incompatibility.

• A UCLA study reveals 40% of US teen gamers actively avoid games with harmful female stereotypes. 

Let's get into it.

Netflix Bets Big on AI as Filmmaking Tool

Netflix is positioning itself as an early adopter of generative AI in filmmaking, viewing the technology as an efficiency tool rather than a creative replacement. "It takes a great artist to make something great," CEO Ted Sarandos told investors, emphasizing AI won't automatically produce compelling storytelling.

The streaming giant has already deployed AI in several productions. "The Eternaut" used it to generate a building collapse scene, while "Happy Gilmore 2" employed the technology for de-aging effects. "Billionaires' Bunker" producers leveraged AI for pre-production visualization of sets and costumes.

The approach suggests an industry consensus forming around AI as a behind-the-scenes enhancement rather than an actor replacement, though visual effects jobs remain vulnerable. Sarandos stressed Netflix isn't "chasing novelty for novelty's sake," signaling a measured adoption strategy.

The entertainment industry remains divided over AI's role, with artists concerned about training data consent and job displacement.

Ubisoft Offers Buyouts to Employees in Latest Industry Downsizing

Ubisoft Entertainment SA is offering select employees a "voluntary career transition program" as part of a resource "realignment," joining widespread cost-cutting across the gaming industry. The program, targeting Massive Entertainment staff awaiting project reassignments, remains open until Dec. 15. 

In other words, Ubisoft's Massive Entertainment is laying off staff but offering them a voluntary exit option with severance and job placement assistance.

The voluntary approach creates a difficult choice: accept severance now in a challenging job market or risk future layoffs without compensation. Gaming companies have eliminated thousands of positions over the past two years amid rising development costs and shifting player habits.

Separately, Ubisoft's Helsinki-based RedLynx studio proposed cutting up to 60 positions as part of company-wide efforts to "simplify, reduce costs, and ensure stronger prioritization."

Ubisoft shares have fallen more than 40% this year amid disappointing game releases and restructuring uncertainty.

⚡️Quick Bytes

EA Sports FC 26 Tops September Revenue Charts Despite Low User Engagement

EA Sports FC 26 dominated September 2025 revenue rankings but failed to crack the top 10 for monthly active users, according to global data firm Newzoo. The sports title led to revenue generation, followed by NBA 2K26 and Borderlands 4. Surprisingly, Hollow Knight Silksong claimed fifth place, demonstrating remarkable commercial success after years of anticipation. The indie sequel sold 2 million copies across six markets, with 600,000 on Nintendo Switch alone. Fortnite and Counter-Strike 2 rounded out the revenue top six, while Dying Light: The Beast secured seventh despite mixed reception.

Steam's Deluge: Nearly 13,000 Games Lost in 2025's Digital Avalanche

Valve's Steam platform launched an estimated 12,732 games in 2025, but 40% failed to recoup the $100 submission fee. Only 8% grossed over $100,000, while nearly two-thirds earned under $1,000. The bottom 30% averaged just $37 in revenue, highlighting Steam's oversaturated marketplace.

Iraq Bans Roblox Over Child Safety Concerns

Iraq has banned Roblox, citing child exploitation risks and cultural incompatibility. The government said direct user communication exposes minors to cyber-extortion. Roblox contested the decision, calling it based on outdated information and noting it suspended Arabic-language chat features earlier this year. Iraq joins Turkey, Oman, Qatar, and China in blocking the platform.

Judge Extends Google's Play Store Overhaul Deadline to October 29

A US judge granted Google and Epic Games a one-week extension on the Epic injunction deadline, moving compliance from October 22 to October 29, 2025. The order requires Google to allow developers alternative billing systems and independent pricing following Epic's antitrust victory. Google plans to appeal to the Supreme Court by October 27 while complying with the mandate, which aims to reduce developer fees and promote competition.

Study: 40% of US Teen Gamers Avoid Media With Harmful Female Stereotypes

A UCLA study of 1,500 adolescents found 42% of female gamers and 37% of males avoid games portraying women stereotypically. Over half of female players felt pressure to "act differently" due to gender or identity, while 65% of males reported similar concerns. Nearly half struggled finding representative characters, particularly Asian and Hispanic players. Positively, 88% found community through gaming, and 52% reported emotional regulation benefits.

⚔️Side Quest

🤣Laugh:

📺 Listen: Gaming legend Trip Hawkins shares the wild origin story of EA: treating developers like rock stars, launching Madden NFL, working with Steve Jobs at Apple, and the ambitious 3DO console experiment. Plus lessons on failure, reinvention, and what's next in AI-driven creativity. A must-listen for gaming history buffs.

🎮 Play: A labor of love that delivers on childhood dreams. Jurassic World Evolution 3 combines stunning dinosaur animations with intuitive park building and a compelling campaign. Every detail shines, from unique footprints in mud to gorgeous attractions. Frontier has created something special here. 

📚 Read: Grace Benfell asks: what if worse graphics actually made games better? Using Final Fantasy's output (five classics in five years vs four in a decade), she builds a provocative case about game development's unsustainable path.

💡Did You Know

The Super Mario Bros. speedrunning community stands just 13 frames (roughly 0.2 seconds) away from matching a seemingly perfect tool-assisted speedrun (TAS). Since glitch-enabled runs began in 2007, players averaged over one framerule improvement (21 frames) annually until 2021, when progress slowed dramatically due to extreme optimization. Current world record holder Niftski has pushed human execution to extraordinary limits, narrowing the gap to Maru's seven-year-old TAS at 4:54.262. This TAS represents the fastest possible completion without pressing left and right simultaneously, a theoretical human limit. While those final 13 frames demand near-impossible precision, the community believes a TAS tie is achievable, though it may require several more years of dedication.

📜 Quote of the Day

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