Embracer Group has released financial results for the first quarter of the current fiscal year, ending June 30, 2024. The overall decline has been truly dramatic.since we are talking about Net sales of new games plunged 91% year-over-year for PC and consolesbut there are plans for a future recovery. The post-restructuring picture is also terrible, showing a company halved compared to two years ago, with the company’s employees having gone from 18,605 to 10,844 (-7,761), with internal studios having gone from 139 to 103 (-36) and with games in development having gone from 215 to 127 (-88).
Despite this, the report speaks of reduced losses on an annual basis: they are currently 209.3 million dollars, against 423.7 million last year. Net revenue was $755.7. Overall they are down 24% from last year, despite the collapse of the PC/console sector.
Recovery plan
The division of the company that had the highest turnover was that of board games which, despite a 3% drop, grossed $289.5 million. PC and consoles follow with $253 million (-34%) and mobile with $132.3 million (-3%).
Net sales of new PC and console games fell 91% year-over-year to just $13.9 million. Homeworld 3, MotoGP 24, Gigantic: Rampage Edition, and Oddsparks: An Automation Adventure led the revenue. The company attributed the decline in the PC/Console segment to lack of new major releases and a “hard comparison” to the same period last year, when the company launched the hit Dead Island 2.
Catalog games helped drive sales, up 5% to $158.6 million. The top-selling titles were Remnant II, Dead Island 2, Star Trek Online, Deep Rock Galactic, Neverwinter Online, Welcome to Bloxburg, Kingdom Come Deliverance, Marvel’s Guardians of the Galaxy, SOUTH PARK: SNOW DAY!, and AEW: Fight Forever.
Embracer’s plan to improve the situation is similar to that of other publishers: It wants to focus on its most important intellectual properties, the ones that typically perform best.
In the current fiscal year, which ends on March 31, 2025, Embracer plans to publish games such as Disney Epic Mickey: Rebrushed, Titan Quest II, Killing Floor III, Gothic 1 remake, Hyper Light Breaker, and Kingdom Come: Deliverance II. The latter was recently delayed to February 11, 2025.
Other upcoming games include Marvel 1943: Rise of Hydra (developed externally, publisher Plaion), a Tomb Raider-related project (to be published by Amazon), Perfect Dark (developed by Crystal Dynamics and Microsoft’s The Initiative), and The Eternal Life of Goldman (developed externally by Weappy Studio).
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