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Gamedev News: Epic lays off, Capcom with AI

Overview of weekly gamedev news: layoffs at Epic Games, Capcom's use of AI, record sales of Crimson Desert and Steam tools updates. Technical projects like DOOM on CSS and emulation in Linux.

Epic Cuts 1000: gamedev news March 2026
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Key Game Dev News: Epic Layoffs, Capcom AI, and Sales Hits

Epic Games is cutting 1,000 jobs due to declining Fortnite revenue. Crimson Desert reached 3 million sales in one week with rapid patches based on feedback. Sony is raising PS5 Pro prices to $900, while Xbox is making Game Pass more affordable. Unity is shutting down its Ads Network and selling Supersonic to boost revenue.

Layoffs and Restructuring in the Industry

Nacon is selling Spiders studio (GreedFall, Steelrising), acquired in 2019. PlayStation is closing Dark Outlaw Games, founded in 2025 by a former Treyarch lead. Warhorse Studios fired a Czech-to-English translator, replacing them with AI—the translator spoke out against the practice.

Epic Games faces slowing growth, reduced consumer spending, and competition from TikTok. The layoffs do not involve AI roles. Todd Howard (Bethesda) highlighted the harm of leaks: they distort information for both developers and players.

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Mouse: P.I. for Hire was added to wishlists 1.4 million times—developers clarified details.

AI and Development Tools

Capcom will use generative AI to accelerate production, but not for in-game assets—only for process efficiency.

Unity is ending support for Ads Network and selling Supersonic, focusing on revenue growth.

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Steam updated pricing tools with three methods:

  • Currency exchange rate conversion.
  • Purchasing power parity (Big Mac index).
  • Multi-currency: combines exchange rates, local purchasing power, and entertainment prices.

Useful for indie developers when setting prices across different regions.

Sales, Prices, and Releases

Crimson Desert: 3 million sales in one week, the team quickly released updates based on feedback.

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Sony: PS5 Pro — $900 starting April 2. Nintendo: digital exclusives cheaper than physical, starting with Yoshi and the Mysterious Book.

Xbox: plans to reduce Game Pass price through budget tiers.

Technical Projects and Tutorials

DOOM in pure CSS: rendering walls, floors, enemies via div and CSS transforms, logic in JS. Playable in the browser.

Emulating "Well, Just You Wait!" on Linux: the author adapted their emulator for low-end hardware, avoiding ready-made solutions.

Animation in Unreal: cheat sheet for beginners — basic working principles.

Procedural effects:

  • Pool Balls in ShaderGraph with SDF.
  • Watercut in Unity.
  • Planet generator in Godot.

Analytic fog rendering: radial density functions in volumetric primitives.

What Matters

  • Epic and other studios are reducing staff due to competition and lower player spending.
  • AI speeds up dev processes (Capcom, Warhorse), but assets are generated manually.
  • Steam improved pricing: three methods for accurate conversion.
  • Hits like Crimson Desert show demand for action-RPGs with fast feedback.
  • Tools: CSS-DOOM, Unreal animation, procedural gen in Unity/Godot.

Nintendo is changing pricing: digital cheaper than physical. Xbox is lowering Game Pass costs.

— Editorial Team

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