Elden Ring above, Devolver in chaos… the business news of the week

business news Elden Ring above, Devolver in chaos… the business news of the week

Sales numbers, studio purchases, financial statements, developer transfer window, investments … if these topics interest you, you’ve come to the right place. We offer you an update on business news last week.

Summary

  • Elden Ring regained lead sales in the US
  • Devolver: sales are even worse than expected since January
  • Focus Entertainment has revealed its results, 31 games planned for March 2025
  • Sony’s Firesprite studio is growing
  • In short business news of the week

Elden Ring regained lead sales in the US

“The market is especially in need of more new releases” : as harvest Matt Piscatella from research firm NDP Group summarizes the results for the month of May 2022 in the United States. The numbers grim: Spending on games, consoles and accessories fell 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 declined.

The conclusion is simple: in the top 50 of May’s best sales, we see … just a novelty. This is Evil Dead The Game, installed in 4th place. Faced with a lack of competition, games like Call of Duty Modern Warfare (2019) and Skyrim re-emerged in the top 20. Above, it’s logical Elden Ring regaining its throne, dragging LEGO Star Wars The Skywalker Saga to 2nd place. We can also highlight the good performance of Nintendo Switch Sports which, for the second month of sales, rose from 5th to 3rd position. Nintendo games are good overall with eight representatives, which is even more impressive given that eShop sales don’t count here, while Sony puts out MLB The Show 22, Horizon Forbidden West and Gran Turismo 7.

On the console side, the Switch was the best -selling console in the same quantity and price for the month of May. This year, the Nintendo engine has dominated the number of units sold, while the Xbox Series has generated a lot of money.

Best selling in May in the United States

Best selling 2022 in the United States

Elden Ring above, Devolver in chaos… the business news of the week

Devolver: sales are even worse than expected since January

Elden Ring above, Devolver in chaos… the business news of the week

Upon entering the London Stock Exchange in November, Devolver Digital will have to constantly 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 result of a competitive market and “items specific to each game” which he will consider for his next titles. “At the same time, there is an expected increase in amortization costs associated with these games as well as an increase in overall operating costs due to inflation, headcount and marketing”also marks the speaking.

During the relevant period, Shadow Warrior 3, Weird West, Trek to Yomi and Serious Sam Siberian Mayhem are the main games released by Devolver. We’ll note that the first three had the same ones integrated into a subscription when they were released: the Game Pass for the Yomi and Weird West Trek, and the PS Now for Shadow Warrrior 3.

Devolver expects to raise the bar in the second half of 2022. The publisher bets on the releases Return to Monkey Island, Cult of the Lamb, Reign of the Three Kingdoms or Wizard with a Gun, but also the extensive catalog of games already available (over 90 titles) from which most of its revenue comes. Overall in 2022, Devolver expects a turnover of between 125 and 135 million euros, representing a good increase compared to 2021 (90 million euros), and a profit before interest and taxes between 25 and 30 million euros.

Focus Entertainment has revealed its results, 31 games planned for March 2025

Elden Ring above, Devolver in chaos… the business news of the week

Shutdown for Focus Entertainment. After many years of growth, the French publisher and developer posted even lower results for the financial 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 “less than expected” according to speaking in the group.

Many facts need to be emphasized. 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 creating 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 raised by the end of March 2022. As of March 31, Focus’s cash amounts to at 62.6 million euros.

Finally, the balance looks to the future in an optimistic way. Focus has announced that the line-up of games over the next three years will be the most ambitious in its history, with no less than 31 games are expected to launch in March 2025. We can now consider Hardspace: Shipbreaker, which launched in version 1.0 on May 24, as a success with 500,000 copies of it sold. The company can also rely 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. Past (2023). We also learned that a new “ambitious game” made by Deck13 (The Surge) is set to be released in early 2023.

Sony’s Firesprite studio is growing

Elden Ring above, Devolver in chaos… the business news of the week

Firesprite clearly has big ambitions. Acquired by Sony in September, the studio will move to a new location, still located in Liverpool, but larger with a space of 4,645 m² available against just 215 m previously. A movement that has witnessed the significant progress it has experienced in recent years. Founded in 2012 by former members of Studio Liverpool (Wipeout), Firesprite now has more than 300 employees and continues to recruit many, as some have shown. 50 job offers listed on its site. Before it was acquired, the studio was already a close ally of Sony. He particularly signed the terrific 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-developer of the PSVR 2 game Horizon: Call of the Mountain with Guerrilla Games while working on three other AAA projects developed with Unreal Engine 5, as shown in its various job offers. Made mention 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 cars. Regarding the latter, there has been talk of a reboot of the Twisted Metal franchise according to rumor.

In short business news of the week

  • After a month of Early Access on Steam, V Rising has passed 2 million sales marks.
  • Kojima Productions has confirmed that its collaboration with Xbox around a cloud -based game will not damage its relationship with Sony. “A lot of people have asked us about our collaboration with Sony. Please know that we continue to have a very good collaboration with PlayStation as well”can we read on studio twitter account.
  • Nintendo Switch Sports is at the top of physical sales in France for the sixth consecutive year. This was followed by Minecraft (Switch version), Mario Kart 8 Deluxe, Horizon Forbidden West (PS5 version) and Kirby and the Forgotten World.
  • 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 accumulated according to Sensor Tower. The streaming giant, which has more than 220 million subscribers worldwide, now offers 24 games, compared to 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.

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