TWIG #382: Merge Mansion Falls, Xbox Fires the Wrong People, and the Math That Killed Gaming VC

Supercell absorbs Merge Mansion, Xbox fires its veterans and hires from Instacart, and the math behind gaming's VC collapse finally gets laid out in full. In this episode of TWIG, Mishka is joined by Josh Chandley, John Wright, and Ethan Levy to break down the biggest moves in games this week, from Finland's most beloved merge studio quietly running out of road to why gaming VC funding has dropped 95% since 2021. Topics Covered: ● Supercell acquires Metacore and why a profitable $30M a month game still couldn't survive ● What the 70% layoffs tell us about liveops competition and the limits of celebrity UA campaigns ● Xbox replaces 24-year veterans with Instacart execs, and whether growth engineering can fix a content problem ● GameStop bids for eBay with no synergy pitch and why the meme stock era never really ended ● Roblox voluntarily takes a billion dollar hit on bookings and why it might be the smartest long-term bet in the room ● The math that broke gaming VC funding, from $12.5B in 2021 to $627M in H1 2025 and what founders should do instead CHAPTERS: 00:00 Cold Open Jail Joke 00:11 Meet the Hosts 01:47 Episode Headlines 02:21 Theme Park Mario Talk 03:13 Line Monetization Schemes 04:40 Istanbul Events Plug 05:37 Consulting Shoutout 07:03 Supercell Buys Metacore 08:38 Metacore Rise and Stumble 10:51 UA Cuts and Layoffs 20:00 Strategic Investor Dynamics 23:14 Xbox Leadership Shakeup 24:42 Game Pass and Content Gap 26:48 Microsoft IP Live Service Vision 28:59 Xbox IPs Need Long Runs 29:55 GameStop Buys eBay Meme 32:22 Roblox Safety Overhaul Fallout 35:32 Age Verification Debate 37:02 Roblox Monetization and 18 Plus 43:03 Ustwo Cuts Costs Reality 45:16 Freelancers Bands Model 47:25 Premium Math Doesn't Work 51:19 VC Funding Math Broke 59:06 Is This the New Normal 01:01:56 Wrap Up and Thanks

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TWIG #382: Merge Mansion Falls, Xbox Fires the Wrong People, and the Math That Killed Gaming VC is an episode from Deconstructor of Fun by Deconstructor of Fun.

This episode is 01:03:06 long.

This episode was published on May 7, 2026.

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