business news Elden Ring on top, Devolver in revolt … this week’s business news
Sales figures, student purchases, accounts, developer transfer window, investments … if these topics interest you, you have come to the right place. We offer you an update on the latest week’s business news.
- Elden Ring regains the American sales link
- Devolver: Sales worse than expected since January
- Focus Entertainment reveals its results, 31 games scheduled for March 2025
- Sony’s Firesprite studio is growing
- Map in this week’s business news
Elden Ring regains the American sales link
“The market desperately needs big new releases” : here’s how Matt Piscatella from the research firm NDP Group summarizes the results for the month of May 2022 in the United States. The numbers are dismal: Expenditure 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 month in a row that spending has fallen.
The conclusion is simple: in the top 50 of the best sales in May we find … only one news. This is Evil Dead The Game, installed in 4th place. Faced with the lack of competition, games like Call of Duty Modern Warfare (2019) and Skyrim reappear in the top 20. At the top, it is logically Elden Ring that regains its throne, pulling LEGO Star Wars The Skywalker Saga to 2nd. the square. We can also highlight the good performance of Nintendo Switch Sports, which for its second month of marketing climbed from 5th to 3rd place. Nintendo games are doing well overall with eight reps, which is all the more impressive as eShop sales do not count here, while Sony puts MLB The Show 22, Horizon Forbidden West and Gran Turismo 7.
On the console side, Switch was the best-selling console in both volume and value for the month of May. During the current year, the Nintendo machine dominates in number of devices sold, while the Xbox series has generated the most money.
Devolver: Sales worse than expected since January
After entering the London Stock Exchange last November, Devolver Digital now has to communicate regularly about its financial results. This week, the Texas-based publisher warned its investors about it sales of its games released between January and May 2022 lower than expected. According to the company, this is the consequence of a competitive market and “factors specific to each game” which she will take into account for her next titles. “At the same time, there has been an expected increase in amortization costs related to these games as well as increases in general operating costs due to inflation, number of employees and marketing”also notes communicated.
During the period in question, Shadow Warrior 3, Weird West, Trek to Yomi and Serious Sam Siberian Mayhem are the main games released by Devolver. We can note that the first three have in common that they have been integrated into a subscription as soon as they were released: Game Pass for Trek for Yomi and Weird West, and PS Now for Shadow Warrrior 3.
Devolver expects to raise the bar in the second half of 2022. The publisher will focus on the publications of Return to Monkey Island, Cult of the Lamb, Reigns Three Kingdoms or Wizard with a Gun, but also on its large catalog of games already available (more than 90 titles), from which the majority of its income comes. Throughout 2022, Devolver expects revenue of between 125 and 135 million euros, which would represent a good increase compared to 2021 (90 million euros), and a profit before interest and tax between 25 and 30 million euros.
Focus Entertainment reveals its results, 31 games scheduled for March 2025
Shutdown for Focus Entertainment. After several years of growth, the French publisher and developer was able to deliver significantly lower results for its financial year ending 31 March 2022, with a turnover of 142 million euros (-17%) and a net profit of 3 million euros (-78%) . However, these figures are taken into account “a little above expectation” according to communicated of the group.
Several facts should be highlighted. First, 88% of Focus game sales were made by download. Three games have “contributed greatly to revenue” : SnowRunner, Insurgency Sandstorm and A Plague Tale: Innocence. That “good performance” from Necromunda Hired Gun and Aliens Fireteam Elite are also mentioned.
Focus says it spent € 35 million developing new games during the year, up from € 39.5 million the year before. The company also spent 59.1 million euros on buying studios Dotemu, Leikir Studio, Streum On Studio and Douze Dixièmes. To rebuild the fund, 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 was withdrawn at the end of March 2022. March 31, Focus accounted for cash. to 62.6 million euros.
Finally, the balance is optimistic about the future. Focus announces that its game selection over the next three years is the most ambitious in its history by no less than 31 games are expected to be launched in March 2025. We can already consider Hardspace: Shipbreaker, launched in version 1.0 on May 24, as a success with its 500,000 copies sold. The company will also be able to count on Teenage Mutant Ninja Turtles: Shredder’s Revenge (released June 16), Evil West (September 20), A Plague Tale: Requiem (whose release date will be revealed on June 23) or even Aliens: Dark Descent (2023). We also learn that a new “ambitious game” developed by Deck13 (The Surge) is scheduled for release in early 2023.
Sony’s Firesprite studio is growing
Firesprite obviously has big ambitions. The studio, acquired by Sony in September last year, is moving to new premises, still located in Liverpool, but much larger with an area of 4,645 m² available against previously only 215 m². A movement that testifies to the marked growth it has experienced in recent years. Firesprite was founded in 2012 by former members of Studio Liverpool (Wipeout), and now has more than 300 employees and continues to recruit massively, as evidenced by the few 50 job offers listed on its website. Prior to the acquisition, the studio was already a close partner of Sony. He especially signed the horror FPS The Persistence, which was first released on PS VR in 2018, and participated in the development of The Playroom and The Playroom VR.
Currently, the British team co-develops the PSVR 2 game Horizon: Call of the Mountain with Guerilla Games while working on three other AAA projects developed with Unreal Engine 5, as evidenced by the various job offers. Mention is made of a dark and ambitious narrative adventure game, a PvP multiplayer shooter based on a new license and oriented “game service” and a multiplayer action game with vehicles. With regard to the latter, it is rumored that this is a restart of the Twisted Metal franchise.
Map in this week’s business news
- After a month of early access on Steam, V Rising has exceeded the sales limit of DKK 2 million.
- Kojima Productions has confirmed that their collaboration with Xbox around a cloud-based game does not endanger its relationship with Sony. “A lot of people have asked us about our partnership with Sony. You should know that we also continue to have a very good partnership with PlayStation.”we can read on studio twitter account.
- Nintendo Switch Sports tops physical sales in France for the sixth time in a row. It is followed by Minecraft (Switch version), Mario Kart 8 Deluxe, Horizon Forbidden West (PS5 version) and Kirby and the Forgotten World.
- The switch is now more than 25 million units sold in Japan. It is the 3rd best-selling console in the archipelago behind Game Boy (32.5 million) and Nintendo DS (33 million).
- The games integrated into the Netflix catalog have been downloaded 13 million times cumulatively, according to Sensor Tower. The streaming giant, which has more than 220 million subscribers worldwide, currently offers 24 games, compared to 5 when the service was launched in November last year. Spirit Dangers, Reigns: Three Kingdoms, Terra Nil, La Casa de Papel: Money Heist or The Queen’s Gambit Chess.