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Today in video games - 26th August: the Gamescom mop-up continues as the industry takes a breath
Game Updates

Today in video games – 26th August: the Gamescom mop-up continues as the industry takes a breath

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It’s 26th August, the day after a bank holiday in the UK – I hope you had a nice one – and we’re back with another daily live report. We’ll be catching all of today’s news and events here while chatting merrily along with you, providing thrilling coverage about the world of video games. That’s right – thrilling!

Note, Tom’s on holiday this week so I’ve muscled in, which is why you’re already seeing excited words like “thrilling” in the report. Expect a lot of Gamescom mop-up this week as our roving reporters return and share more about the games they’ve seen, and as the games industry takes a breath before September appears and the cascade of autumn releases begins.

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dexerto logo next to angry robo
Esports

Twitch’s viewership takes a massive hit after cracking down on viewbots

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Twitch viewership is trending downward across the board in the time since they began cracking down severely on viewbots, with an up to 24% reduction week over week.

Viewership on the livestreaming platform has been declining in general even if there are some high points like Ibai’s La Vida Del Ano event that draw people to the platform in droves, but seeing such a massive and sustained decrease in viewership is not normal.

While one dip in viewership can easily be written off, a general and noticeable drop after Twitch’s policy change likely means one thing: their crackdown on viewbots is working.

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However, with that exposing how many viewers on the platform weren’t real people, a lot of the biggest Twitch streamers have taken a big hit to their viewership.

Twitch’s viewbot crackdown results in huge viewership reduction

With viewbots, it’s important to note that literally anyone could pay to bot someone’s channel, and that bots aren’t all that expensive. Just because someone lost viewership in the crackdown doesn’t necessarily mean they were buying bots for themselves, and a streamer being mentioned for losing viewership in this article is by no means a pejorative toward streamers mentioned.

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Starting with general Twitch viewership, it’s clear that there’s a downward trend that began on August 21. Before that, viewership was on par with if not a little higher than the week before.

Twitch TrackerThe faded green line is last week’s viewership, while the bright one is this week’s

There’s a very clear and rapid downward trend across the board, with literal hundreds of thousands of viewers detracted from Twitch’s overall live viewership pool.

And, while some fluctuation is normal, there aren’t any massive outliers or Twitch events week over week that’d result in such a massive swing of viewership one way or the other. Yet, at its absolute lowest on Friday, August 22, viewership dropped to a staggering 24% lower than last week. Viewership was also 23% lower on Sunday, August 24, yet another big crater in viewership.

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Next, let’s look to one of the biggest streamers on Twitch: Asmongold.

His viewership has dropped off on a very similar curve, losing roughly 10-20% of his average viewership depending on the day. Again, there’s going to be some statistical anomalies depending on the contents of his stream, but the trend is downward.

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Stats via Twitch Tracker

It’s clear as day that there’s been a pretty steady drop off on the exact same curve as Twitch’s overall downward trend. August 19 is an outlier considering he was restreaming Gamescom’s Opening Night Live. Leaving that off, he’s had a loss of around 20-30% of his peak viewership compared to the past few weeks.

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It’s not as if the streamers are happy about this, either. Tectone pointed out that his viewership has taken a hit but is also fluctuating rapidly as other people bot his stream, going from 3k viewers to 7k and rubber-banding back and forth as people send bots to his channel.

A few days of data is by no means conclusive, and more data will have to be gathered until it becomes apparent just how many Twitch viewers aren’t real people. For now, though, it’s clear that a sizeable portion of the platform’s viewership is made up of bots, and that there may be large streamers who used them to artificially bump up their numbers.

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GameFi Guides

‘Some Studios Won’t Survive’ as AI Takes Over Gaming, Says Google Cloud Exec

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In brief

  • Google Cloud exec Jack Buser warned that rising costs and stagnant play time have left studios with a broken business model.
  • A recent Google Cloud study said nine of 10 developers now use AI tools somewhere in production.
  • While critics fear job losses and backlash as AI reshapes game design, Buser said AI can create “living games.”

Generative AI is triggering an industry-wide reckoning in gaming—and some studios won’t survive the fallout.

That’s the warning from Jack Buser, global games director at Google Cloud, who says the industry is entering an upheaval as big as any in its history.

“Some of these game companies are going to make it, and some of them are not,” Buser told Decrypt. “And some are going to be born through this revolution.”

Buser, a 30-year industry veteran, works with publishers and studios to adopt cloud infrastructure and AI, from scaling multiplayer systems to analyzing player data and testing generative tools. That role puts him at the intersection of big tech and game development, where studios connect to Google’s servers and AI models to build, or sustain, their titles.

He pointed out that AI is arriving just as developers face mounting financial pressure and shrinking player engagement with new games.

“Over half of play time is in games more than six years old,” he said. “So if you’re making a new game, you’re competing for less than half of the available play time. And if you’re the creator of one of those older games, you’re struggling to keep it relevant and keep players engaged.”

Following decades of growth, the global games industry dipped post-pandemic, with revenues falling in 2022 before recovering. In 2024, it generated $182.7 billion, up 3.2% from the year before. Revenues are expected to rise to $188.9 billion in 2025, a 3.4% increase.

“You have a broken business model, and the result is layoffs, game cancellations, and other problems across the games industry in recent years,” Buser said.



However, Buser believes generative AI could be the industry’s way out. A Harris Poll commissioned by Google found that nine out of 10 developers are already using AI tools in some part of the production process.

“If you go use case by use case in your development pipeline, from concept to quality assurance, and you attack every use case with AI, you can have quite a radical reduction in development time,” he said.

Developers are testing generative tools aimed at changing how games look, feel, and evolve in real time. Buser called this the era of the “living game”—titles that use AI in real time to analyze player behavior and generate new content on the fly. Unlike traditional games, which rely on patches and downloadable content (DLC) drops, these systems could adapt in minutes rather than months.

“Take Darth Vader in Fortnite, for example—the player reaction was strong,” Buser said. “We’re just scratching the surface.”

But the rollout wasn’t smooth. When Fortnite introduced an AI-powered Darth Vader earlier this year, the bot spewed racist and homophobic slurs before Epic Games quickly patched the system.

Not everyone welcomed the experiment. Following the release, SAG-AFTRA filed a labor complaint against Epic subsidiary Llama Productions, accusing the company of replacing voice actors with artificial intelligence without union consent.

“This charge concerns the union’s critical role in negotiating terms concerning the replacement of bargaining unit work with AI technology,” a SAG-AFTRA spokesperson told Decrypt. “We are very supportive of AI tools to enhance the audience experience, but employers cannot implement these types of uses without coming to the union first and bargaining terms.”

Buser drew comparisons between the increased role of AI and earlier shakeups in gaming history—moments when technological shifts redrew the industry map. Some companies adapted to the move from cartridges to CD-ROMs. Others didn’t.

“You will see some companies that did not make it,” Buser said. “And then you see other just massive game companies today that were what I’ll call CD-ROM-native. This is the exact same thing happening now.”

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Nikhilesh De
GameFi Guides

State of Crypto: Crypto Takes Jackson Hole

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Policymakers of various stripes spoke at the SALT Wyoming conference this week in Jackson Hole, Wyoming.

You’re reading State of Crypto, a CoinDesk newsletter looking at the intersection of cryptocurrency and government. Click here to sign up for future editions.

The narrative

Congress is still on vacation, but policymakers trekked up to Jackson Hole, Wyoming to speak to the crypto industry — largely praising it or saying how they expect legislation to move forward. Here are some clips of what they said, courtesy of CoinDesk’s Helene Braun and others.

Why it matters

The industry has seen a lot of progress on crypto policy priorities this year. Lawmakers’ comments hint at what the last four months of 2025 might look like, and what we can expect from federal regulators.

Breaking it down

“I believe that we’ll have between 12 and 18 Democrats at least open to voting for market structure.” — Senate Banking Committee Chair Tim Scott

“We will have it on the President’s desk before Thanksgiving.” — Senator Cynthia Lummis on market structure legislation

“Just imagine seeing on public equity all the transactions that go in and out of that company and how much information that gives you.” — Franklin Templeton CEO Jenny Johnson

“We need a clear, strategic regulatory framework that will facilitate the adoption of new technology, recognizing that in some cases, it may be inadequate and inappropriate to apply existing regulatory guidance to address emerging tech.” — Federal Reserve Vice Chair for Supervision Michelle Bowman

“There is nothing to be afraid of when thinking about smart contracts, tokenization or distributed ledgers.” — Federal Reserve Board Governor Chris Waller

“It’s no secret that my side of the aisle would prefer not to see any sitting President — I won’t name one — participating in this market while a sitting president unless those assets are in a sealed trust.” — Rep. Angie Craig, ranking member on the House Agriculture Committee

  • Congress remains on break and no regulatory agency is holding an event this week.
  • (CNBC) Goldman Sachs expects U.S. consumers to pay for the tariffs that U.S. President Donald Trump imposed on most countries trading with the U.S. A few days after that earlier article, Sony announced it would raise the price of Playstation 5 consoles in the U.S.
  • (Electronic Frontier Foundation) Wyoming and South Dakota have enacted stringent laws requiring websites to verify users’ ages if they host “any sexual content,” including “a broad range of non-pornographic content, including classic literature and art.”
  • (The Wall Street Journal) Despite Elon Musk’s public statements about founding a new political party, he is backtracking and instead considering supporting Vice President JD Vance and other Republicans, the Journal reported.

If you’ve got thoughts or questions on what I should discuss next week or any other feedback you’d like to share, feel free to email me at nik@coindesk.com or find me on Bluesky @nikhileshde.bsky.social.

You can also join the group conversation on Telegram.

See ya’ll next week!



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US government takes 10 percent stake in Intel in exchange for money it was already on the hook for
Gaming Gear

US government takes 10 percent stake in Intel in exchange for money it was already on the hook for

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The US is investing $8.9 billion into Intel, but most of the funds come from money that the government was supposed to pay the embattled chipmaker anyway. In an announcement on Friday, Intel said the federal government will fund its investment using the remaining $5.7 billion in grants it hasn’t yet received under the Biden administration’s CHIPS Act, in addition to the $3.2 billion received as part of the Secure Enclave program.

President Donald Trump confirmed the investment during a press briefing before the formal announcement, saying Intel CEO Lip-Bu Tan agreed to give the government a 10 percent stake. Earlier this month, Trump called on Tan to resign over his ties to China, and today he positioned the deal as a way for the executive to “keep his job.”

Trump told reporters that he floated the offer during negotiations with Tan. “I said, ‘I think it would be good having the United States as your partner,’” Trump said. “They’ve agreed to do it, and I think it’s a great deal for them.” Intel has already received $2.2 billion under the CHIPS Act.

The government’s investment in Intel “will be a passive ownership, with no Board representation or other governance or information rights,” according to Intel. “We are grateful for the confidence the President and the Administration have placed in Intel, and we look forward to working to advance U.S. technology and manufacturing leadership,” Tan says in the press release.

The confirmation of the deal comes just days after SoftBank announced plans to invest $2 billion into Intel to “further expand” chipmaking in the US.

Treasury Secretary Scott Bessent hinted at the government’s potential investment this week, saying during an interview with CNBC that it “would be a conversion of grants” meant to “stabilize the company for chip production here in the US.”

It doesn’t seem like this is the end for Trump’s approach to deal-making, as he said during the briefing that “he’ll do more of them” in the future.

Update, August 22nd: Added information from Intel.



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Hyperliquid Takes 80% Of Defi Perps Market, Hits $30B Daily Volume
GameFi Guides

Hyperliquid Takes 80% of DeFi Perps Market, Hits $30B Daily Volume

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Hyperliquid has become the star of decentralized finance by taking more than 80% of the perpetuals market and handling over $30 billion in trades every single day, according to a new report from RedStone

This rise happened in only one year, which is very fast for any crypto platform. RedStone, notes Hyperliquid is now competing with some of the largest centralized exchanges because of its speed, its design, and the way it helps builders.

One of the main reasons for this growth is Hyperliquid’s order book. Most decentralized platforms struggle to keep up with centralized exchanges, but Hyperliquid’s order book runs fully on-chain and still gives the same speed and fair pricing. 

Another reason is due to HIP-3, which is described as Hyperliquid’s permissionless market creation system. This system allows anyone to create new markets without any requirement from a third party.

HIP-3 also shares revenue with developers, and in many cases, these developers earn even more than the protocol itself. RedStone explained that this has encouraged many builders to join, which has turned Hyperliquid into one of the most creative and active communities in decentralized finance.

Hyperliquid also uses a special design made up of HyperCore and HyperEVM. This setup lets users try new financial ideas, such as tokenized perpetual positions and strategies that balance risk. It also gives tools for better liquidity, which is very important for smooth trading. 

“Hyperliquid is setting a new standard,” the RedStone report said. It added that the platform’s design and community-driven approach are opening “unprecedented opportunities for builders and institutions alike.”

Meanwhile, there are numbers to back this up. According to data from DefiLlama, Hyperliquid has more than $2.2 billion locked on its network. In addition to that, it has processed $330 billion in total trading volume in the past 30 days.

Hyperliquid TVL | Source: DefiLlama

What makes this story even more unusual is that Hyperliquid is not backed by large venture capital firms. Instead, it is run by a lean, self-funded team. 

Also Read: Coinbase to List Trump-Backed USD1 Stablecoin



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Whisper of the House
Gaming Gear

Whisper of the House takes the cosy isometric decorating of Unpacking and unleashes it upon an entire town like an ultra-relaxing endless mode

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Unpacking is one of my favourite videogames, where you grab things out of boxes and neatly pop them around an isometric home. It’s pretty linear though—not a complaint, it needs to be to serve its excellent narrative—but I’ve longed for a similar game with fewer shackles ever since.

Whisper of the House is that exact game, if my time with its demo is anything to go by. It takes the same cosy isometric vibes with wee pixel art decor as Unpacking, but gives me that bit more freedom to decorate however I want.

(Image credit: GD Studio)

Instead of following one character’s life as told through the places they live, Whisper of the House plonks me in a town where I can rearrange both my own space and the spaces of villagers who reside there. I’m first tasked with getting my own place in order, before mail requests come through each morning from folk who want my help moving in.


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A wee robot helps me pull items out of a moving box one by one, and I can rotate objects and place them on top of each other—plants that go on shelves, boxes that perch atop refrigerators, plushies that adorn an otherwise plain bedspread. Each location has multiple rooms, but I’m not actually confined to placing the objects inside each one.

Wanna stick a microwave in the hallway? A little weird, but sure thing. You’re the interior designer. Want to keep every photo in one specific location? You can easily bring items between rooms as you please. It’s not quite as tactile as Unpacking—I can’t open every single cupboard and drawer to store things out of sight, which bummed me out a little—but every item is gorgeously crafted with a wee description when you hover over it.

(Image credit: GD Studio)

There are some loose parameters around each villager request. My first job is the dog-loving Luna, and while I’m given free reign across most of her house, her one request is that I create a gallery of photos in her hallway. My second task is a little more out there, requiring me to literally go back in time and help my client clean up his move-in day mess, which I guess makes things better in the future. It wasn’t quite what I was expecting, but having to tidy up everything scattered across a tiny apartment broke up the standard “grab item from box, place item” pace.

One of my favourite little additions in Whisper of the House, though, is being able to roam around the town and rummage in various dumpsters for trinkets and doodads. I am an absolute clutter fiend in The Sims—if it doesn’t look majorly lived in, I don’t want it—so grabbing random Ramune bottles and snacks to adorn my tiny loft apartment with was a real treat.

Even more furniture can be unlocked through nabbing vouchers by completing tasks or picking them up out in the world and then spending them on decor loot boxes. Normally I’d much prefer to pick and choose items myself, but being given random pieces encouraged me to think outside the box and use items I would have normally condemned to my storage for all eternity.

The demo is pretty short overall, but thankfully it’s not a long wait to dip my toe into the full thing, as Whisper of the House launches on August 27.



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SkyDefense CobraJet C-UAS fighter drone and interceptor
Product Reviews

CobraJet Nvidia AI-powered drone killer takes out ‘overwhelming enemy drone incursions’ at up to 300mph

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Defense startup SkyDefense LLC just launched an autonomous combat drone designed to take out enemy drone swarms at a much lower cost than traditional weapon systems. The company calls it the CobraJet — an uncrewed aerial vehicle (basically, a drone) designed for C-UAS (counter-unmanned aircraft system) missions. The drone combines Teledyne FLIR electro-optical and infrared sensors that do not contain restricted foreign parts, and Nvidia AI chips, allowing the drone to process the information that it sees with onboard sensors.

A different kind of VRAM

Aside from its AI brain, the CobraJet also boasts an internal weapons bay and external hardpoints, allowing it to carry kamikaze drones, small missiles, or even fragmentation projectiles. It can also be modified to carry precision bombs and loitering munitions, making it a multirole drone. Its external design mimics that of the U.S.’s latest air superiority and multirole fighters, the F-22 Raptor and F-35 Lightning II, with vertical take-off and landing capabilities and thrust vectoring nozzles. This means it can operate from the back of a truck and have improved maneuverability, allowing it to go toe-to-toe with small and nimble drones.


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Asymmetric warfare answered?

CobraJet is SkyDefense’s solution to the emerging threat of drone swarms on the modern battlefield. These small and cheap weapons are widely used in Russia’s invasion of Ukraine, with the defending Ukrainians effectively using drones to initially counter the larger Russian army. Today, both sides in the conflict use UAVs, and actions on the battlefield highlight the U.S.’s need to develop a cost-effective counter.

While existing weapons like surface-to-air missiles and air-to-air missiles can engage drones, there’s often a huge mismatch in price between these two platforms. Missiles often cost between half a million to more than $4 million — while you can buy a cheap drone for just $200, with the more sophisticated ones, like Iran’s Shahed-136, only costing $20,000. You can also send up a platoon of combat choppers to engage a drone swarm with guns, but you’re risking several multi-million-dollar weapon platforms to combat cheap suicide drones.

(Image credit: SkyDefense LLC)

“Our USA-made CobraJets can communicate and coordinate as a flight team, enabling them to operate as an AI-powered unmanned Air Force,” said SkyDefense LLC President Nick Verini. “This team approach increases the effectiveness of the squadron while also significantly reducing the costs of destroying a swarm of enemy drones.”

SkyDefense LLC hasn’t released the unit cost of the CobraJet, but it’s going to be so much more affordable than the fighter jets it looks like, and the missiles they carry. The company is offering the drone to law enforcement, Homeland Security, and the U.S. military, giving them the ability to protect against hostile drone swarms without needing to spend copious amounts of money to take down such cheap weapons.



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