business news Elden Ring above, Devolver in excitement … the business news of the week
Sales numbers, studio purchases, financial statements, developer transition window, investments … if you’re interested in these topics, you’ve come to the right place. We offer you an update on last week’s business news.
- Elden Ring regained lead sales in the US
- Devolver: sales are worse than expected since January
- Focus Entertainment announced its results, 31 games planned before March 2025
- Sony’s Firesprite studio is growing
- Brief on business news of the week
Elden Ring regained lead sales in the US
“The market is in dire need of major new releases” : ganito pala Matt Piscatella from research firm NDP Group summarizes the results for the month of May 2022 in the United States. The numbers are dark: spending on games, consoles and accessories dropped 19% to $ 3.7 billion in revenue. This is the lowest amount since February 2020 ($ 3.5 billion), and it is also the seventh consecutive month that spending has dropped.
The conclusion is simple: in the top 50 of the best sales in May, we saw … only one new. This is the Evil Dead The Game, installed in 4th place. Faced with a lack of competition, games like Call of Duty Modern Warfare (2019) and Skyrim are once again emerging in the top 20. At the top, it’s logical Elden Ring that has regained its throne, dragging the LEGO Star Wars The Skywalker Saga in 2nd place. We can also highlight the good performance of Nintendo Switch Sports which, for the second month of its marketing, climbed from 5th to 3rd position. Nintendo games are doing well overall with eight representatives, which is even more impressive because it doesn’t count eShop sales, while Sony puts out MLB The Show 22, Horizon Forbidden West and Gran Turismo 7.
On the side of the console, the Switch was the best selling console in both quantity and value for the month of May. In the current year, Nintendo machines dominate in the number of units sold, while the Xbox Series has generated the most money.
Devolver: sales are worse than expected since January
Upon entering the London Stock Exchange in November, Devolver Digital should now regularly communicate its financial results. This week, the Texas -based publisher warned its investors sales of its games released between January and May 2022 were lower than expected. According to the company, this is the consequence of a competitive market and “factors specific to each game” which he will consider for his next titles. “At the same time, there has been an expected increase in amortization costs associated with these games as well as increases in overall operating costs due to inflation, headcount and marketing”also denotes coordinate.
Over time worrying, Shadow Warrior 3, Weird West, Trek to Yomi and Serious Sam Siberian Mayhem are the main games released by Devolver. We’ll notice that the first three will be identically included in a subscription once they’re released: the Game Pass for Trek to Yomi and Weird West, and the PS Now for Shadow Warrrior 3.
Devolver expects to raise the level in the second half of 2022. The publisher will evaluate the releases of Return to Monkey Island, Cult of the Lamb, Reign of the Three Kingdoms or Wizard with a Gun, but also in its extensive catalog of games available (over 90 titles) from which most of its revenue comes. Throughout 2022, Devolver expects a turnover of between 125 and 135 million euros, which represents a nice increase compared to 2021 (90 million euros), and a profit before interest and taxes of between 25 and 30 million euros. .
Focus Entertainment announced its results, 31 games planned before March 2025
Shutdown for Focus Entertainment. After several years of growth, the French publisher and developer posted lower results for its fiscal year ended March 31, 2022, with revenue of 142 million euros (-17%) and net income of € 3 million (-78%). However, these numbers are taken into account “somewhat more than expected” according to coordinate of the group.
There are many facts to highlight. First, 88% of Focus game sales are made through downloads. There are three games “strongly contributes to turnover” : SnowRunner, Insurgency Sandstorm and A Plague Tale: Innocence. The “good performance” from Necromunda Hired Gun and Aliens Fireteam Elite are also mentioned.
Focus says it spent € 35 million on developing new games this year, up from € 39.5 million last year. The company also spent 59.1 million euros to buy the studios Dotemu, Leikir Studio, Streum On Studio and Douze Dixièmes. To replenish the coffers, 68.8 million euros were raised in May 2021, as well as 130 million euros in the form of bank financing, of which 52 million were drawn at the end of March 2022. As of March 31, Focus’s cash was worth at 62.6 million euros.
Finally, the balance looks to the future in an optimistic way. Focus announced that its line-up of games over the next three years will be the most ambitious in its history, with at least 31 games are expected to be launched in March 2025. We can now consider Hardspace: Shipbreaker, which launched in version 1.0 on May 24, as a success with its sold 500,000 copies. The company can also look forward to Teenage Mutant Ninja Turtles: Shredder’s Revenge (released on June 16), Evil West (September 20), A Plague Tale: Requiem (whose release date will be announced on June 23) or even Aliens: Dark Decline (2023). We also learned that a new “ambitious game” developed by Deck13 (The Surge) is scheduled to release in early 2023.
Sony’s Firesprite studio is growing
Firesprite clearly has big ambitions. Acquired by Sony in September, the studio will move to the new location, still located in Liverpool, but larger with 4,645 m² of space available against just 215 m previously. A movement that is witnessing the significant growth it has experienced in recent years. Founded in 2012 by former members of Studio Liverpool (Wipeout), Firesprite now has over 300 employees and continues to recruit significantly, as evidenced by a few. 50 job offers listed on its site. Prior to its acquisition, the studio was a close partner of Sony. He notably signed the horror FPS The Persistence, first released on PS VR in 2018, and participated in the development of The Playroom and The Playroom VR.
Currently, the British team co-developed the PSVR 2 game Horizon: Call of the Mountain including Guerrilla Games while working three other AAA projects developed using Unreal Engine 5, as shown by its various job offers. The mention consists of a dark and ambitious narrative adventure game, a PvP multiplayer shooter based on a new license and dedicated to “game service”, and a multiplayer action game with vehicles. About the latter, there is talk of a reboot of the Twisted Metal franchise according to rumors.
Brief on business news of the week
- After a month of Early Steam Access, V Rising surpassed the 2 million sales mark.
- Kojima Productions has confirmed that its partnership with Xbox around a cloud-based game does not pose a risk to its relationship with Sony. “A lot of people have asked us about our partnership with Sony. Please know that we continue to have a very good partnership with PlayStation as well.”can we read on studio twitter account.
- Nintendo Switch Sports was at the top of physical sales in France for the sixth consecutive year. It is followed by Minecraft (Switch version), Mario Kart 8 Deluxe, Horizon Forbidden West (PS5 version) and Kirby and the Forgotten World.
- The Switch now has more than 25 million units sold in Japan. It is the 3rd best selling console in the archipelago behind the Game Boy (32.5 million) and the Nintendo DS (33 million).
- The games included in the Netflix catalog have been downloaded 13 million times in aggregate according to Sensor Tower. The streaming giant, which has more than 220 million subscribers worldwide, currently offers 24 games, up from 5 when the service launched in November. Soon, Spiritfarer, Reigns: Three Kingdoms, Terra Nil, La Casa de Papel: Money Heist or The Queen’s Gambit Chess will land.