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Video Game Industry Braces for Sluggish Growth in 2024 Amid Weak Console Sales

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Video Game Industry Braces for Sluggish Growth in 2024 Amid Weak Console Sales

The global video game market is expected to see modest growth in 2024, as weak console sales continue to impact the industry, according to a new report by market research firm Newzoo. The firm predicts the industry will grow by 2.1% year-over-year, reaching an estimated $187.7 billion.

This figure marks a slight downgrade from an earlier forecast in January, where Newzoo anticipated a 2.8% growth, with the industry reaching $189.3 billion in 2024. The revised outlook reflects ongoing challenges in the console market, which is expected to see a 1% decline in revenue this year.

Despite the sluggish growth, the U.S. and China remain dominant players in the global gaming landscape. Together, these two markets are projected to account for nearly half of all consumer spending on video games in 2024, with the U.S. generating $47 billion in sales and China close behind at $45 billion.

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While the anticipated 2.1% growth rate is an improvement from last year’s 0.6% increase, it pales in comparison to the rapid expansion seen during the height of the COVID-19 pandemic, when gaming saw a significant surge in popularity.

Michiel Buijsman, Newzoo’s principal games market analyst, noted that despite the expected sluggish performance in 2024, the industry is poised for a significant rebound in 2025. Buijsman predicts that the console market, in particular, will “return with a bang” next year, suggesting that the current downturn may be a temporary setback.

This outlook comes in the wake of Sony’s recent announcement that it sold 2.4 million units of its PlayStation 5 console in the first fiscal quarter, down from 3.3 million units sold during the same period last year. This decline in console sales has been a key factor in the tempered growth projections for the gaming industry in 2024.

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OpenAI CTO Mira Murati Announces Departure After 6 Years

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OpenAI CTO Mira Murati Announces Departure After 6 Years

OpenAI’s Chief Technology Officer, Mira Murati, has announced her departure from the company after six and a half years. In a memo shared on X, Murati expressed that she had made the “difficult decision” to step away from OpenAI, citing her desire for personal exploration and reflection.

“There’s never an ideal time to step away from a place one cherishes, yet this moment feels right,” Murati wrote, emphasizing her commitment to ensuring a smooth transition for the company during this critical time.

Her exit follows other high-profile departures from the company, including co-founder Ilya Sutskever and former safety leader Jan Leike in May, as well as co-founder John Schulman, who left last month to join rival company Anthropic.

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Murati’s departure comes at a time when OpenAI is pursuing a new funding round, potentially valuing the company at over $150 billion, with significant investments anticipated from major players like Thrive Capital, Microsoft, and Nvidia. OpenAI, the company behind ChatGPT, has seen rapid growth since 2022 but has also faced internal controversies and employee turnover, sparking concerns about its ability to scale safely.

Murati became a public figure when she was appointed interim CEO last November after the abrupt ousting of CEO Sam Altman. Despite her departure, she remains focused on supporting OpenAI’s momentum in the coming months.

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CrowdStrike Exec Apologizes to US Lawmakers for July IT Outage

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CrowdStrike Exec Apologizes to US Lawmakers for July IT Outage

During a congressional hearing, CrowdStrike executive Adam Meyers issued a formal apology for the massive IT outage in July, which affected millions of computers globally. In his opening remarks, Meyers expressed deep regret, stating, “On behalf of everyone at CrowdStrike, I want to apologize. We are deeply sorry this happened and are determined to prevent it from happening again.”

Meyers assured lawmakers that the company is committed to learning from the incident and making significant improvements. This includes enhancing testing and checks on updates, as well as altering how future updates are issued to avoid similar disruptions.

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Caroline Ellison May Avoid Jail Time for Role in FTX Scandal

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Caroline Ellison May Avoid Jail Time for Role in FTX Scandal

Caroline Ellison, the former CEO of Alameda Research and key witness in the criminal case against FTX founder Sam Bankman-Fried, faces sentencing this Tuesday. Despite her involvement in the massive fraud that led to FTX’s collapse, Ellison may avoid significant jail time due to her cooperation with federal authorities.

Ellison admitted to defrauding investors and misappropriating billions of dollars from FTX customers, redirecting funds to Alameda’s speculative trading and debt repayment. Both Ellison and Bankman-Fried face the same serious charges, which carry a potential maximum sentence of 110 years. However, her cooperation with prosecutors has been deemed “extraordinary,” leading the federal Probation Department to recommend “time served” with three years of supervised release.

Her testimony was crucial in portraying Bankman-Fried’s role in the collapse, particularly due to their close personal relationship. This unique insight into his operations helped strengthen the government’s case. While Ellison was involved in fraudulent activities, legal experts believe her lesser control compared to Bankman-Fried will likely result in a lighter sentence, potentially no more than 18 months in prison.

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