Microsoft has agreed to pay an additional $250 million in its deal with Activision Blizzard, Nintendo has ramped up production of the Switch 2, and Unreal Engine 6 has been announced — we cover the main events in the gaming industry over the past weekend.
- Microsoft is close to settling a lawsuit from the Swedish pension fund Sjunde AP-Fonden (also known as AP7). To recall, in 2022, AP7 accused the leadership of Microsoft and Activision Blizzard of collusion, alleging that the corporation offered then-CEO of Activision Blizzard Bobby Kotick a chance to "save his skin" from a discrimination and harassment scandal, in exchange for purchasing the company at a lower price than it was actually worth. After nearly four years, the parties decided to reach a settlement agreement. Under its terms, Microsoft promised to pay Activision Blizzard shareholders an additional 30 cents per share, totaling approximately $250 million. Notably, Microsoft did not admit any wrongdoing. They stated that they agreed to the concession because continuing legal proceedings with the fund would have consumed too much time and money. Meanwhile, AP7 withdrew its accusations. Now the settlement agreement draft must be reviewed by the court.
- Nintendo has approached hardware manufacturers with a request to produce 20 million units of the Switch 2 by March 31, 2027, according to Bloomberg sources. This is significantly more than its sales forecast. Previously, the company stated that it plans to sell 16.5 million Switch 2 consoles in the current fiscal year. Analyst Serkan Toto from Kantan Games speculated to Bloomberg that Nintendo is deliberately underestimating its forecast to later exceed it. Last year, it did the same by initially stating a plan to sell 15 million Switch 2 units, but ultimately shipped 19.86 million.
- Epic Games announced the sixth version of the Unreal Engine in an unusual way. During the Rocket League Championship in Paris, it showcased a short video announcing that the game will transition from Unreal Engine 3 to Unreal Engine 6. The company did not share any details, only providing a few footage clips and the engine's logo. The initial scenes reveal that Unreal Engine 6 will be capable of delivering more realistic graphics. However, the fact that Epic Games is working on Unreal Engine 6 is no secret. In May 2025, the company's head Tim Sweeney stated that a preview version of the updated engine would be released around 2027-2028, combining the capabilities of Unreal Engine 5 and the Unreal Editor for Fortnite.