Two recent stories have demonstrated how the real-world economies of massively-multiplayer online games are thriving. TechCrunch reports that Playspan has raised $16.8 million to expand its virtual goods marketplace. The money came from existing investors including Easton...

Shacknews reports that Gearbox has made up to 26 staff redundant, following rumours that Sega has cancelled Aliens: Colonial Marines. CEO Randy Pitchford has subsequently stated that to say it has “halted” is an “inaccurate characterization.” 26...

Casualgaming.biz reports that Pepsi Sweden has launched a 3D music game to promote Pepsi. It’s a 3D flash game that allows you to play the guitar like a rock god (or not, in my case), and the...

Variety is reporting that Brash Entertainment is to cease trading tomorrow. The news follows 20 layoffs last week and the critical and commercial failure of the three games that the company has released: Alvin and the Chipmunks,...

Cyan Worlds has made nearly all of its staff redundant, with 50 people laid off. Cyan World’s primary client, Gamecock, was recently acquired by SouthPeak Interactive. CEO Tony Fryman is quoted as saying that he was uncertain that...

Brash Entertainment has made 20 employees redundant. The company raised $400 million to make games based on movies, but its first titles – Alvin and the Chipmunks, Jumper, Space Chimps – all flopped. Twenty staff have been...

This blog is frequently a cheerleader for the new model of gaming: browser-based, distributed on the web, living in the cloud, monetized by advertising, subscriptions and micro-payments. But sometimes it’s worth shouting about the old school of...