Embracer PC and console sales plummet during Q2
Embracer Group has published its financial results for Q2, reporting declines across the board, particularly in its console and PC games segment.
- For the three months ended September 30, 2024:
Net sales: SEK 8.55 billion ($774 million), down 21% year-on-year, including:
Net loss: SEK 390 million ($35 million, compared to net loss of SEK 562 million / $51 million during the same period last year)
- For the six months ended September 30, 2024:
Net sales: SEK 14.4 billion ($1.30 billion), down 23% year-on-year, including:
Net loss: SEK 2.58 billion ($233 million, compared to net profit of SEK 1.69 billion / $153 million during the same period last year)
Looking at the sales split for Embracer's Q2, the decrease was particularly sharp for PC/console games, with net sales down 46% year-on-year. This was, among others, due to few new releases, and mixed reception of the titles that did release (for instance Disney Epic Mickey: Rebrushed), the company said.
Q2 FY25 also suffered the comparison with the same quarter last year due to the successful launches of Remnant 2 and Payday 3 in 2023.
Sales of Embracer's back catalogue struggled as well, which the firm said was impacted by the divestment of Gearbox and parts of Saber Interactive – sales were down 21% year-on-year.
The decline was softer elsewhere, with Embracer noting "solid earnings growth" at Asmodee, which is still on track to spin off this financial year. Embracer's tabletop games sales were still down 6% year-on-year to SEK 3.82 billion ($345 million).
Compared to the same quarter last year, the number of game developers working at the Embracer Group has plummeted, from 10,654 to 6,250. The total headcount similarly went from 15,701 to 10,450.
Looking at its game development projects currently in the works, it went from 201 in Q2 FY24 to 128 during Q2 FY25.
For the full financial year, Embracer expects "lower earnings year-on-year" due to the delay of "notable" H2 games. The firm highlighted Kingdom Come: Deliverance 2
Read more on gamesindustry.biz
