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"Game On" is The Fly's weekly recap of the stories powering up or beating down video game stocks.NEW RELEASES:Among this week's new releases is Nintendo's"Super Mario Bros. Wonder Nintendo Switch 2 Edition + Meetup in Bellabel Park," the Switch 2 upgrade for 2023's "Super Mario Bros. Wonder." The game releases March 26 exclusively for Switch 2. Also out this week is Square Enix'sadventure game "Life Is Strange: Reunion," which releases for PC, PlayStation 5, and Xbox Serieson March 26.CIRCANA FEBRUARY:Circana analyst Mat Piscatella said that Capcom's"Resident Evil Requiem" debuted as the best-selling video game of 2026 as overall spending in February grew slightly when compared to a year ago, reaching $4.6B. The new "Resident Evil" game's blockbuster debut and a 27% boost in subscription services helped video game content spending stay flat when compared to February 2025. In hardware, Nintendo Switch 2 drove 22% year-on-year spending growth. Hardware spending increased 22% when compared to a year ago, to $326M. Spending on Nintendo Switch 2 hardware offset year-on-year declines across PlayStation 5, Switch and Xbox Series consoles. PlayStation 5 again led the hardware market in both unit and dollar sales. Nintendo Switch 2 repeated its January performance ranking 2nd across both measures. With nine months in market, the life-to-date installed base of Nintendo Switch 2 is trending 45% ahead of the original Nintendo Switch.February video game content spending was flat when compared to February 2025, at $4.0B. Non-mobile subscription content spending increased by 27% compared to a year ago, offsetting the declines experienced across other content segments, Piscatella said. "Resident Evil Requiem" debuted as the best-selling video game of the year. It also ranked 1st in February across the PlayStation, Xbox and the aggregated PC storefront charts. Launch week dollar sales of "Resident Evil Requiem" were more than 60% higher than the launch week total of "Resident Evil Village," which came out in 2021, with unit sales increasing by more than 40%. Square Enix's "Dragon Quest VII Reimagined" debuted as the 7th best-selling game in February while ranking 14th year-to-date. Other top-selling games for the month in the U.S. were Take-Two's"NBA 2K26," Microsoft's "Call of Duty: Black Ops 7" and "Minecraft," Sony's "Helldivers II," EA's"EA Sports FC 26," "Battlefield 6," and "Madden NFL 26," and Nintendo's "Mario Tennis Fever."EPIC GAMES LAYOFFS:On Tuesday, Epic Games sent a letter to staff, which read, "Today we're laying off over 1000 Epic employees. I'm sorry we're here again. The downturn in Fortnite engagement that started in 2025 means we're spending significantly more than we're making, and we have to make major cuts to keep the company funded. This layoff, together with over $500M of identified cost savings in contracting, marketing, and closing some open roles puts us in a more stable place. Some of the challenges we're facing are industry-wide challenges: slower growth, weaker spending, and tougher cost economics; current consoles selling less than last generation's; and games competing for time against other increasingly-engaging forms of entertainment. And some of our challenges are unique to Epic. Despite Fortnite remaining one of the most successful games in the world, we've had challenges delivering consistent Fortnite magic with every season; we're only in the early stages of returning to mobile and optimizing Fortnite for the world's billions of smartphones; and in being the industry's vanguard we have taken a lot of bullets in a battle which is only in the early days of paying off for ourselves and all developers. Since it's a thing now, I should note that the layoffs aren't related to AI. To the extent it improves productivity, we want to have as many awesome developers developing great content and tech as we can." Investors in Epic Games include Tencent, KKR, Disney, and Sony.SWITCH 2 OUTPUT:Nintendo has cut back on the production of the Switch 2 after lower-than-expected demand for the $450 gaming console during the year-end holiday season, Takashi Mochizuki of Bloomberg. The company now intends to make 4 million units this quarter, less than the 6 million originally planned, people familiar with the matter told Bloomberg.EA DEBT PACKAGE:Electronic Arts is courting buyers for a $15B debt package to fund its acquisition by a group of investors, with the pitch centered on nearly $700M in projected annual cost savings its new owners argue should be counted as earnings, Aaron Weinman, Paula Seligson, and Michelle Cheng of BloombergTuesday. EA has told investors that the $263M spent on research and development for the worlds of "Battlefield 6" and "Skate" can be added back to earnings, as this was a one-time cost and both games are now live, people familiar with the matter told Bloomberg.MORE VIDEO GAME NEWS:Ubisofthas ended game development at its Red Storm studio,Multiplayer game 'Pokemon Champions' toApril 8PlayStation plans to drop the "PlayStation Network" and "PSN" brandidng by September 2026,Roblox, including adding restrictions to advertising standards

Circana analyst Mat Piscatella said that Capcom's (CCOEY) "Resident Evil Requiem" debuted as the best-selling video game of 2026 as overall spending in February grew slightly when compared to a year ago, reaching $4.6B. The new "Resident Evil" game's blockbuster debut and a 27% boost in subscription services helped video game content spending stay flat when compared to February 2025. In hardware, Nintendo Switch 2 (NTDOY) drove 22% year-on-year spending growth. Hardware spending increased 22% when compared to a year ago, to $326M. Spending on Nintendo Switch 2 hardware offset year-on-year declines across PlayStation 5 (SONY), Switch and Xbox Series (MSFT) consoles. PlayStation 5 again led the hardware market in both unit and dollar sales. Nintendo Switch 2 repeated its January performance ranking 2nd across both measures. With nine months in market, the life-to-date installed base of Nintendo Switch 2 is trending 45% ahead of the original Nintendo Switch. February video game content spending was flat when compared to February 2025, at $4.0B. Non-mobile subscription content spending increased by 27% compared to a year ago, offsetting the declines experienced across other content segments. "Resident Evil Requiem" debuted as the best-selling video game of the year. It also ranked 1st in February across the PlayStation, Xbox and the aggregated PC storefront charts. Launch week dollar sales of "Resident Evil Requiem" were more than 60% higher than the launch week total of "Resident Evil Village," which came out in 2021, with unit sales increasing by more than 40%. Square Enix's (SQNXF) "Dragon Quest VII Reimagined" debuted as the 7th best-selling game in February while ranking 14th year-to-date. Other top-selling games for the month in the U.S. were Take-Two's (TTWO) "NBA 2K26," Microsoft's "Call of Duty: Black Ops 7" and "Minecraft," Sony's "Helldivers II," EA's (EA) "EA Sports FC 26," "Battlefield 6," and "Madden NFL 26," and Nintendo's "Mario Tennis Fever."

"Game On" is The Fly's weekly recap of the stories powering up or beating down video game stocks.NEW RELEASES:Among this week's most notable releases is Capcom'slatest role-playing game "Monster Hunter Stories 3: Twisted Reflection," which launches on March 13 for PC, PlayStation 5, Xbox Series X/S, and Nintendo Switch 2. Also out this week is Take-Two'swrestling sim "WWE 2K26," which also launches March 13 for PC, PS5, Xbox Series, and Switch 2.PROJECT HELIX:Last week, Microsoft's new gaming CEO, Asha Sharma, teased the next-gen Xbox, codenamed Project Helix, saying it "will lead in performance and play your Xbox and PC games." In a post on X, formerly Twitter, Sharma wrote: "Great start to the morning with Team Xbox, where we talked about our commitment to the return of Xbox including Project Helix, the code name for our next generation console. Project Helix will lead in performance and play your Xbox and PC games. Looking forward to chatting about this more with partners and studios at my first GDC next week!"NINTENDO LAWSUIT:Nintendo has filed a lawsuit with the U.S. Court of International Trade, seeking a refund for the duties it paid to the U.S. government as a result of the tariffs, Aya Wagatsuma of Bloomberg reported over the weekend. The company argues the tariffs paid were "unlawfully collected" and has asked for a "prompt refund," according to the filing.SONY/PC:Sony no longer plans to release its big single-player PlayStation 5 games on PC, a major strategy shift that sees it returning to console exclusivity, Bloomberg's Jason Schreier reported Thursday. Online games will still be released across multiple platforms, but single-player titles such as "Ghost of Yotei" and "Saros" will remain exclusive to PlayStation 5, Schreier said.'BATTLEFIELD' LAYOFFS:Electronic Artshas cut an unknown number of workers from across its "Battlefield" teams, including staff at development teams Criterion, Dice, Ripple Effect, and Motive, IGN's Rebekah Valentine reported. Staff are being informed that the terminations are occurring as part of a "realignment" across the studios that work on the first-person shooter series, as the team continues its ongoing, live service support for "Battlefield 6" following its 2025 launch, Valentine noted. All four studios will remain in operation, though the job cuts appear to be impacting a variety of teams across multiple studios and offices, Valentine said, noting that "Battlefield 6" was the best-selling game in the U.S. in 2025.MORE VIDEO GAME NEWS:Capcomsaid that "Resident Evil Requiem"in its first week of availabilitySony is testing dynamic pricing for games on its PlayStation Store,Microsoft has filed for a patent covering an AI video gaming assistant,