business news PS5, Netflix, FIFA 23… this week’s business news
Sales figures, studio acquisitions, accounts, developer transfer window, investments… if these topics interest you, you’ve come to the right place. We offer you an update on the past week’s business news.
- Sony: a mixed record, 25 million PS5s sold
- Electronic Arts on track for another record year
- SEGA: results below expectations, but good outlook
- Netflix buys Spry Fox, its 6th in-house studio
- Short in the week’s business news
Sony: a mixed record, 25 million PS5s sold
Sony has revealed contrasting results for the quarter from July to September 2022. Revenue for the PlayStation branch rose 12% (4.9 billion euros against 4.4 billion euros a year earlier), reaching a record for all manufacturers combined in another fiscal quarter, but operating profit shows a sharp drop of 40% (285 million euros against 562 million euros). As a result, the company has downgraded its targets and expects an annual profit of 1.5 billion euros, against the previous 1.7 billion.
Sony justifies the decline in its profits with several factors : the increase in development costs for its games, the consideration of costs related to its acquisitions (including Bungie), the negative impact of exchange rates and the decrease in sales of games and additional content third. Positive point: the decrease in losses related to console sales. In other words, the increase in the price of the PS5, which took effect at the end of August, made it possible to limit the breach.
|July to September 2021||4.4 billion euros||563 million euros|
|July to September 2022||4.9 billion euros||€287 million|
On the production side, Sony shipped 3.3 million PS5s worldwide in the quarter, for a total of 25 million since the console’s release. The company must therefore still distribute 12.3 million between October and March to reach its annual target of 18 million. There is reason for optimism: In addition to pointing out that restrictions on the supply of materials and logistics have “significantly muted”the manufacturer indicates that it actually produced 6.5 million PS5s during the quarter and therefore kept a good set of consoles aside, likely for the holiday season.
Another key element of this assessment: the decline in the number of PS Plus subscribers, which fell from 47.3 million at the end of June to 45.4 million at the end of September. According to Sony, this is primarily due to the faster-than-expected decline in PS4 player engagement. But the company can still rejoice, as the turnover of its “subscription” segment has increased significantly compared to last year (797 million euros against 728 million euros), which undoubtedly indicates that many subscribers have chosen the new Extra or Premium formulas, which are more expensive than the basic one.
Last point: Sales of PlayStation games have also fallen with 62.5 million games sold between July and September (including 6.7 million PlayStation Studios games), a period marked by the release of The Last of Us Part I, compared to 76.4 million a year earlier (including 7 .6 million PlayStation Studios games). However, Sony will be able to finish the year in style with the release of God of War Ragnarok on November 9. The company expects that it will achieve a performance similar to the opus released in 2018, which now has a turnover of 23 million.
Electronic Arts on track for another record year
After detailing its new partnership with Marvel, which will see the arrival of at least three action-adventure games on PC and consoles (including an Iron Man game), Electronic Arts this week revealed a quarterly report quite shiny. The results were once again very high, especially on the profit side with a net profit of 302 million euros on a turnover of 1.9 billion euros. 68% of this revenue comes from microtransactions (mainly on FIFA Ultimate Team and Apex Legends), DLC and other subscriptions (EA Play). We also notice that EA derives the majority of its revenue from console games (1.1 billion euros), then on PC (423 million euros) and mobile (320 million euros).
|Period||Turnover||Operating profit||net profit|
|July to September 2021||1.8 billion euros||343 million euros||300 million euros|
|July to September 2022||1.9 billion euros||431 million euros||302 million euros|
The company could obviously also count on it FIFA 23, which achieved the best launch in the franchise with 10.3 million players in one week. Without revealing the exact number of copies sold, EA indicated that sales are up 10% from FIFA 22 after four weeks on the market. The number of players in FUT mode has also increased by 6%, and that shouldn’t slow down any time soon with the arrival of World Cup mode on November 9th.
Over the full year, EA expects revenue of more than 7.5 billion euros and a net profit of at least 871 million euros. In either case, these would be records for the company, which has reason to be confident given its release schedule. Need for Speed Unbound lands on December 2nd, ahead of a busy first quarter of 2023 which will see the successive releases of Dead Space Remake (January 27th), Wild Hearts (February 17th), PGA Tour, Super Mega Baseball and a title from a “major franchise”. It could well be about Star Wars Jedi: Survivor, which is officially scheduled for 2023.
SEGA: results below expectations, but good outlook
SEGA has published its financial results for the financial semester from April to September 2022. A fairly quiet period for the Japanese company, which distributed 10 million games (compared to 14 million in the same semester a year earlier), with new releases such as Two Point Campus and Soul Hackers 2 plus sales of installed franchises like Yakuza, Total War, Sonic and Persona.
|Period||Turnover||Operating profit||net profit|
|April to September 2021||918 million euros||100 million euros||82 million euros|
|April to September 2022||1 billion euros||65 million euros||65 million euros|
During these six months, SEGA generated an operating profit of 72 million thanks to the sale of PC, console and mobile games. A much weaker result than last year in the same period (125 million euros), but SEGA expects a much better second half of the year, which will make it possible to reach 265 million euros in profit for the entire financial year (compared to 230 million the previous year). The company will be able to count on the releases of Sonic Frontiers, Football Manager 23, Company of Heroes 3, Like a Dragon: Ishin, the ports of Persona 3, 4 and 5 or even Endless Dungeon. A pretty busy schedule, so it’s aiming for a total of 34.2 million games spread over the financial year (vs. 27.2 million a year earlier).
SEGA took the opportunity to update the sales of its major franchises, which you can find in the list below. Note however that the numbers are already a bit dated because they stop on March 31, 2022 and free-to-play game downloads are taken into accountwhich explains the colossal figure in the Sonic franchise.
- Sonic: 1.5 billion
- Total war: 40.4 million
- Puyo Puyo: 37.7 million
- Football Manager: 25 million
- Yakuza: 19.8 million
- Shin Megami Tensei: 19 million
- Virtua Fighters: 18.8 million
- Hatsune Miku: 18.5 million
- People: 15.5 million
- Phantasy Star: 9.8 million
Netflix buys Spry Fox, its 6th in-house studio
The family of studios owned by Netflix continues to grow. After launching its video game offering, which consists of a catalog of titles playable on mobiles and included in the subscription, the streaming giant successively bought Night School Studio (Oxenfree), Boss Fight Entertainment (Dungeon Boss) and Next Games (Stranger Things: Puzzle Tales). He also opened two in-house studios based in Helsinki and California respectively.
This week a new acquisition was announced, namely Spry Fox. “Spry Fox is an award-winning indie studio specializing in original casual games. Their unique approach to video game design and the studio’s success with titles such as Triple Town, Alphabear and Cozy Grove will help us accelerate our development. creatively on much – loved the genre and expands the variety of Netflix’s game catalog to suit all tastes.”indicates communicated. Based in Seattle, the team is currently working on Cozy Grove 2 as well as a “non-violent MMO”.
A few weeks ago, Netflix announced that it had 14 games in preparation in its internal studios, and 55 in total including partnerships such as the one made with Ubisoft to exclusively develop a new Assassin’s Creed, The Mighty Quest for Epic Loot 2 and Unknown Soldiers 2.
Short in the week’s business news
- NetEase has announced the opening of its Osaka, Japan-based studio GPTRACK50, led by Resident Evil producer Hiroyuki Kobayashi, who left Capcom last August.
- FIFA 23 (PS4 version) remains at the top of physical sales in France in week 42 (October 17 to 23) despite the entries of Mario + The Rabbids Sparks of Hope (2nd), Gotham Knights (3 ., PS5 version) and A Plague Tale Requiem (4th, PS5 version).
- Call of Duty Modern Warfare II achieved the franchise’s biggest launch with $800 million generated in three days, dethroning Modern Warfare 3 (2011) and its 775 million in five days. It is more widespread one of the biggest starts in history with GTA V, which had grossed $1 billion in three days in 2013.
- A Plague Tale: Requiem attracted 1 million players in a weekcounting those who tried it through Xbox Game Pass.