Latest news with #Wingefors
Yahoo
22-05-2025
- Business
- Yahoo
Embracer leans on back catalogue as game delays shake industry profits
By Jesus Calero and vera dvorakova (Reuters) - Tomb Raider owner Embracer is leaning on its back catalogue to maintain cash flow while fewer AAA games are being released, but this is not a long-term shift, CEO Lars Wingefors said on Thursday. As game development becomes slower, riskier and more expensive, studios are facing growing pressure to justify their budgets for major releases in a market where consumer sentiment and profitability are wearing thin. "I think it's more important than ever to make sure the game is polished because it's very hard to repair a buggy or unfinished product," Wingefors told Reuters. French peer Ubisoft showed a similar approach with its newest Assassin's Creed game, which debuted with positive reviews on Steam after being delayed twice. Gaming groups thrived during COVID lockdowns, but delays and weak demand have hit Embracer's new titles, pushing it to lean on older games seen as a safer bet amid faltering blockbusters. It has sold studios to cut costs and manage debt in recent years, and is now splitting into three listed companies. On Thursday, it forecast slight revenue growth and broadly unchanged earnings for its fiscal 2025/26, and said that realistically, at least one of its nine AAA game releases slated for the following two financial years would be pushed back, without specifying titles. GAME DELAYS SHAKE INDUSTRY PROFITS Studios are pouring time and money into increasingly complex games, but returns are hit-or-miss and long delays mean many will not see cash back until much later. On top of it, fewer games break through and slower cash generation strains studios, which has made older titles a more attractive and dependable revenue stream for some. Ubisoft recently delayed key titles and pushed profitability expectations to 2026, underscoring sector challenges in converting content into cash. It told Reuters it planned to be more selective and turn blockbusters into "evergreen" franchises that generate steady revenue long after launch. "We will still look to create some new IPs, but will be more discerning in favour of gameplay breakthroughs based on disruptive or emerging technologies," Ubisoft said. Wingefors also said that tools like AI could boost efficiency over time in minor titles, with the industry rapidly adopting them to improve energy gains and technology sales. ($1 = 9.5615 Swedish crowns) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Star
22-05-2025
- Business
- The Star
Embracer leans on back catalogue as game delays shake industry profits
(Reuters) - Tomb Raider owner Embracer is leaning on its back catalogue to maintain cash flow while fewer AAA games are being released, but this is not a long-term shift, CEO Lars Wingefors said on Thursday. As game development becomes slower, riskier and more expensive, studios are facing growing pressure to justify their budgets for major releases in a market where consumer sentiment and profitability are wearing thin. "I think it's more important than ever to make sure the game is polished because it's very hard to repair a buggy or unfinished product," Wingefors told Reuters. French peer Ubisoft showed a similar approach with its newest Assassin's Creed game, which debuted with positive reviews on Steam after being delayed twice. Gaming groups thrived during COVID lockdowns, but delays and weak demand have hit Embracer's new titles, pushing it to lean on older games seen as a safer bet amid faltering blockbusters. It has sold studios to cut costs and manage debt in recent years, and is now splitting into three listed companies. On Thursday, it forecast slight revenue growth and broadly unchanged earnings for its fiscal 2025/26, and said that realistically, at least one of its nine AAA game releases slated for the following two financial years would be pushed back, without specifying titles. GAME DELAYS SHAKE INDUSTRY PROFITS Studios are pouring time and money into increasingly complex games, but returns are hit-or-miss and long delays mean many will not see cash back until much later. On top of it, fewer games break through and slower cash generation strains studios, which has made older titles a more attractive and dependable revenue stream for some. Ubisoft recently delayed key titles and pushed profitability expectations to 2026, underscoring sector challenges in converting content into cash. It told Reuters it planned to be more selective and turn blockbusters into "evergreen" franchises that generate steady revenue long after launch. "We will still look to create some new IPs, but will be more discerning in favour of gameplay breakthroughs based on disruptive or emerging technologies," Ubisoft said. Wingefors also said that tools like AI could boost efficiency over time in minor titles, with the industry rapidly adopting them to improve energy gains and technology sales. ($1 = 9.5615 Swedish crowns) (Reporting by Jesus Calero and Vera Dvorakova in Gdansk, additional reporting by Greta Rosen Fondahn and Leo Marchandon, editing by Milla Nissi-Prussak)
Yahoo
17-02-2025
- Entertainment
- Yahoo
As nearly 2 million sales laugh in the face of live-service pushes, Kingdom Come: Deliverance 2's success "is a reminder" to release "great" games: "High-quality teams need to have the resources and the time to execute their visions"
When you buy through links on our articles, Future and its syndication partners may earn a commission. Kingdom Come: Deliverance 2 has had a phenomenal start, and owner of developer Warhorse Studios – Embracer Group – has now celebrated its success in its latest financial results, calling it "a reminder" to release "great" games. Spotted by VGC, in CEO Lars Wingefors' comments in the company's Q3 results, he says: "We are immensely proud of the teams involved in the successful release of Kingdom Come: Deliverance 2, which has significantly outperformed our expectations so far." He goes on to say that since selling one million copies in its first day, the RPG is "fast approaching two million," and it's expected to keep raking in the cash "over the coming years," too. Before wrapping up his comments, Wingefors highlights a couple of points that are, uh, mostly just common sense, but it's still positive to see the company spotlight their importance. "The success of Kingdom Come: Deliverance 2 is a reminder of our core – to bring great products to the market," Wingefors says. "High-quality teams need to have the resources and the time to execute their visions. When you have [the] right teams, this trust benefits everyone, including gamers, employees and shareholders. I am convinced that we will remain among the industry leaders in our core business verticals in the future." That point about giving teams the resources and time they need is particularly nice to hear given the headlines Embracer has made in recent times as a result of its widespread restructuring program, which saw multiple studios shut down, unannounced games canceled, and an enormous number of staff laid off. Wingefors previously said he's sure "I deserve a lot of criticism," but stated that "ultimately I need to believe in the mission we set out and that is still valid." As for Kingdom Come: Deliverance 2, Warhorse Studios just announced yesterday that official mod support is coming to PC via Steamworks, so you can look forward to even more weird and wonderful mods for the RPG in the future. The developer has already outlined plans for free content updates and DLC this year in its Kingdom Come: Deliverance 2 roadmap, so there's even more to look forward to. While you're here, be sure to check out our top Kingdom Come: Deliverance 2 tips that are sure to be useful for your adventure in Bohemia.
Reuters
13-02-2025
- Business
- Reuters
Embracer misses quarterly profit forecast on higher costs, weak box office
Feb 13 (Reuters) - Swedish games developer Embracer's ( opens new tab third-quarter operating profit came below market expectations on Thursday, as higher user acquisition costs in mobile games and weaker-than-expected box office performance weighed on results. WHY IT'S IMPORTANT Embracer, like other gaming groups, benefited from growing demand for video games during COVID-19 lockdowns, but has since been hit by development delays, falling demand and poor reception for some of its new titles. In recent years, Embracer has begun to divest some of its studios as part of restructuring efforts aimed at reducing costs and managing debt, and is charting a new course by splitting into three publicly traded entities. The Swedish group owns more than a hundred studios worldwide and is known for popular game franchises, such as Tomb Raider, The Lord of the Rings and Kingdom Come: Deliverance. KEY QUOTES "The industry is still in a consolidation phase where there are layoffs driven by lack of capital and new technology tools in efficiency progress... We will make sure we are adapting to the changes in the industry and consumer demands," CEO Lars Wingefors told Reuters. "Delays are always part of the industry, and we will give (games) more time if needed. For 'Kingdom Come: Deliverance II', for example, we delayed from releasing in November to now in February, and I think that three months gave a much more polished, bug-free experience for players", Wingefors added. BY THE NUMBERS The owner of the Tomb Raider franchise said its adjusted operating profit fell 11% to 1.18 billion Swedish crowns ($109.05 million) in the quarter through December, lagging analysts' forecast of 1.73 billion crowns seen in a company-provided consensus, opens new tab. Embracer's PC/Console games segment fell 23% to 2.6 billion crowns from 3.38 billion a year ago. Looking into the upcoming three financial years, Embracer said it has 10 AAA games under development, of which eight are from internal studios and two from external studios. ($1 = 10.8210 Swedish crowns)
