Elden Ring at the top, Devolver in turmoil… the business news of the week

Business news Elden Ring at the top, Devolver in turmoil… the business news of the week

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

Overview

  • Elden Ring Regains US Sales Lead
  • Devolver: sales worse than expected since January
  • Focus Entertainment reveals results, 31 games slated for March 2025
  • Sony’s Firesprite studio is growing
  • Just in the business news of the week

Elden Ring Regains US Sales Lead

“The market desperately needs major new releases” : here’s how Matt Piscatella of research firm NDP Group summarizes the results for the month of May 2022 in the United States. The numbers are bleak: 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’s also the seventh straight month that spending has fallen.

The conclusion is simple: in the top 50 of the best sales in May we find… only one novelty† 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 are resurfacing in the top 20. At the top, logically, it’s Elden Ring who regains his throne and drags LEGO Star Wars The Skywalker Saga into 2nd place. We can also highlight the good performance of Nintendo Switch Sports, which climbed from 5th to 3rd position for the second month of marketing. Nintendo games generally do well with eight reps, which is all the more impressive given that eShop sales aren’t counted here, while Sony puts MLB The Show 22, Horizon Forbidden West and Gran Turismo 7.

On the console side, the Switch was the best-selling console in both volume and value for the month of May† In the current year, the Nintendo machine dominates in number of units sold, while the Xbox series has generated the most money.

May’s best sales in the United States

The United States’ Best Sales of 2022

Elden Ring at the top, Devolver in turmoil... the business news of the week

Devolver: sales worse than expected since January

Elden Ring at the top, Devolver in turmoil... the business news of the week

Devolver Digital entered the London Stock Exchange last November and now has to communicate regularly about its financial results. This week, the Texas-based publisher warned its investors that: sales of its games released between January and May 2022 have been lower than expected. According to the company, this is the result of a competitive market and “factors specific to each game” which she will take into account in her next titles. “At the same time, there is an expected increase in depreciation charges related to these games, as well as increases in general operating expenses due to inflation, workforce and marketing”also notes that communicated

In the period concerned, Shadow Warrior 3, Weird West, Trek to Yomi and Serious Sam Siberian Mayhem are the major games released by Devolver. We can note that the first three have in common that they were integrated into a subscription as soon as they were released: the Game Pass for Trek to Yomi and Weird West and the PS Now for Shadow Warrrior 3.

Devolver expects to raise the bar in the second half of 2022† The publisher is betting on the releases of Return to Monkey Island, Cult of the Lamb, Reigns Three Kingdoms or Wizard with a Gun, but also on the vast catalog of games already available (more than 90 titles), from which most of its revenue comes. For the whole of 2022, Devolver expects a turnover of between 125 and 135 million euros, which would mean a nice increase compared to 2021 (90 million euros), and a profit before interest and taxes between 25 and 30 million euros.

Focus Entertainment reveals results, 31 games slated for March 2025

Elden Ring at the top, Devolver in turmoil... the business news of the week

Exit for Focus Entertainment. After several years of growth, the French publisher and developer posted significantly lower results for the fiscal year ending March 31, 2022, with a turnover of 142 million euros (-17%) and a net profit of € 3 million (-78%). However, these figures are considered “slightly above expectations” according to the communicated from the group.

Several facts should be emphasized. First, 88% of Focus game sales were made by download. Having three games “contributed strongly 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 new game development over the year, up from €39.5 million the year before† The company also spent €59.1 million to buy Dotemu, Leikir Studio, Streum On Studio and Douze Dixièmes studios. To replenish the cash register, 68.8 million euros was raised in May 2021, as well as 130 million euros in the form of bank financing, of which 52 million at the end of March 2022. As of March 31, Focus’s cash amounted to 62.6 million euros.

Finally, the balance sheet looks optimistically to the future. Focus announces that its lineup of games for the next three years is the most ambitious in its history, with no less than 31 games are expected by March 2025† Hardspace: Shipbreaker, launched in version 1.0 on May 24, can already be considered a success with 500,000 copies sold. The company can also count on Teenage Mutant Ninja Turtles: Shredder’s Revenge (released June 16), Evil West (September 20), A Plague Tale: Requiem (which release date will be revealed on June 23), or even Aliens: Dark Descent (2023). ). We also learn that a new ones “ambitious game” developed by Deck13 (The Surge) is planned for early 2023

Sony’s Firesprite studio is growing

Elden Ring at the top, Devolver in turmoil... the business news of the week

Firesprite obviously has big ambitions. The studio, which was acquired by Sony last September, will move to new premises, still located in Liverpool, but much larger with 4,645sqm of available space compared to just 215sqm previously. A movement that testifies to the strong 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 en masse, as evidenced by the few 50 vacancies listed on the site† Before the takeover, the studio was already 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-developing 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 can be seen from the various vacancies. A dark and ambitious story adventure game, a PvP multiplayer shooter based on a newly licensed and oriented “game service”, and a multiplayer action game with vehicles are reported. As for the latter, it is rumored that the Twisted Metal franchise will be rebooted.

Just in the business news of the week

  • After a month of Early Access on Steam, V Rising has crossed the 2 million sales mark
  • Kojima Productions has confirmed that its partnership with Xbox on a cloud game will not jeopardize its relationship with Sony. “A lot of people have asked us about our partnership with Sony. Please know that we also still have a very good partnership with PlayStation.”can we read on the studio twitter account
  • Nintendo Switch Sports tops 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.
  • More than 25 million units of the Switch have been sold in Japan. It is the 3rd best-selling console in the archipelago after the Game Boy (32.5 million) and the Nintendo DS (33 million).
  • The games integrated into the Netflix catalog have been downloaded a total of 13 million times, 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 launched last November. Soon Spiritfarer, Reigns: Three Kingdoms, Terra Nil, La Casa de Papel: Money Heist or The Queen’s Gambit Chess will land.

Leave a Comment