Gamedev News Digest

Contents:

• Playdate Portable Sales Launch
• SSD for PlayStation 5
• Sony Financial Report: Revenue Grows, Profit Falls
• 150,000,000
• Take-Two Loses Profit — GTA Doesn't Save
• Electronic Arts Loses Profit — FIFA Doesn't Save
• Nintendo Is Doing Badly, Too
• Square Enix Is Growing, But Not in AAA Games
• Embracer acquired 3D Realms and more
• Blizzard President leaves the company
• Layoffs at Xsolla

Start of sales of the Playdate portable

The handheld console, the size of two matchboxes, sold out in pre-orders in just 20 minutes. The first run consisted of 20,000 units, demonstrating high interest and demand among gamers.

Panic will begin accepting orders for the next batch of portable gaming devices in 2022. Shipment volume will be adjusted based on demonstrated demand. Players will have even more reasons to invest $179 in this unique console, as Panic has announced the release of a free SDK for developers. This will allow them to create new exclusive games for the Playdate, expanding the range and improving the gaming experience.

Owners of the Playdate portable console will soon be able to enjoy 24 exclusive games, including a new work by Lucas Pope, known for his masterpieces. Every week, users will receive one new game completely free, without the need for a subscription to services like PS Plus or Game Pass. This makes Playdate an attractive choice for fans of unique gaming projects.

SSD for PlayStation 5

Console owners Sony's PlayStation 5 users can now expand their console's storage capacity with third-party SSDs. This feature became available thanks to a recent firmware update that unlocked the M.2 slot. Users can now improve their console's performance and install additional games, significantly expanding the functionality of the PS5.

The PS5's base 1TB drive can only store four and a half Call of Duty games, making the need for compatible SSDs obvious. The high demand for such devices is due to the need for expanded storage for modern games, which take up significant amounts of space. Despite the high prices of SSDs, which can reach up to $250, buyers are willing to invest in improving their gaming experience. This highlights the importance of increased storage for PS5 users seeking the optimal gaming experience.

Gigabyte offers one of the most affordable devices on the market - the AORUS Gen4 1TB SSD. This SSD delivers excellent read and write speeds, making it an ideal choice for the PS5 console. Its price is only $200, making it an attractive option for users looking for high-performance storage at a reasonable price.

Sony's financial report: revenue grows, profit falls

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150,000,000

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Grand Theft Auto V (GTA V) has achieved impressive sales figures, confirming its status as one of the best-selling video games of all time. Since its release, the game has attracted millions of players worldwide thanks to its gripping storyline and open world. GTA V's strong sales underscore its popularity and influence on the gaming industry. Not only has the game set records for the number of copies sold, but it also remains relevant thanks to constant updates and expansions that keep players engaged.

In the first quarter, Sony's gaming division's revenue increased by 6.1%, reaching a record $5.62 billion. However, profit for this division decreased by 43.6%. This decrease may be due to increased production of new gaming consoles, which typically sell at a loss during their initial market launch. This demonstrates the company's strategic approach to increasing market share and attracting new users, despite short-term financial losses.

During the reporting period, the company sold 2.3 million PlayStation 5 and 500,000 PlayStation 4 consoles, a significant achievement compared to previous generations. Total PS4 sales reached 116.4 million units. Despite the release of the digital version of the PS5, the share of digital game sales decreased from 74% to 71%. This may indicate that players still prefer physical copies of games.

The number of active players continues to decline, as many are tired of spending time in lockdown with a gamepad in hand. In the previous quarter, the number of players was 109 million, but after the easing of coronavirus restrictions, this number decreased to 104 million. The audience decline indicates that users are looking for new ways to spend time outside the virtual world.

Take-Two is losing profits - GTA is not saving

The post-pandemic downturn has also affected Take-Two, which saw a 2% decline in revenue. Even the successful Grand Theft Auto V, which continues to attract new audiences eight years after its release, was unable to offset this decline. In a changing video game market, the company must adapt to new realities and find ways to restore growth.

The fifth installment of Grand Theft Auto has sold 150 million copies. Red Dead Redemption 2 has sold 38 million copies, and its online player base has increased by 18% since 2019. However, these figures are not as impressive compared to GTA V, which increased its sales by 72% over the same period. At the same time, the NBA 2K series, which is the publisher's main source of income, continues to generate profits thanks to loot boxes. Total sales of titles in this franchise amount to 112 million copies.

Take-Two expects a decline in revenue in 2023, but they have 20 new games planned for release. This strategic decision is aimed at achieving new revenue and profit records. By focusing on content diversity and high-quality production, Take-Two aims to strengthen its position in the video game market and attract new audiences.

Electronic Arts is losing profits - FIFA is not saving

The situation at EA also shows interesting trends. Revenue increased by 6%, despite a significant decrease in net profit, which fell by 44%. This indicates possible challenges in cost management and business efficiency, which may affect the company's further development.

Electronic Arts is demonstrating an optimistic approach to its results. The final indicators for the first quarter turned out to be more successful than expected, which allowed it to increase the profit target for the current year from 390 million to 456 million dollars. This indicates growth and positive dynamics in the company's financial performance, which may attract the attention of investors and strengthen its position in the market.

Electronic Arts is counting on the successful launch of Battlefield 2042 and a new series of annual sports simulators. However, the company does not expect to repeat the financial results achieved during the pandemic and forecasts a 43% decline in revenue in the next quarter compared to the same period in 2020.

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We are carefully analyzing the impact of recent events on the development process. Despite the current situation, we have a strong lineup of games scheduled for release in the second half of this year. In 2022, we plan to release several significant Blizzard titles across PC, consoles, and mobile platforms. We also have more outstanding games coming from the Call of Duty, Candy Crush Saga, and Warcraft series. We're confident these releases will satisfy fans and attract new audiences.

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Nintendo is also doing badly

Nintendo, traditionally a successful company in the gaming industry, faced difficulties in the last quarter. The company's revenue decreased by 9%, and profit decreased by 17.3%. These indicators indicate the need to reconsider strategies and find new solutions to restore financial position.

Sales of the Nintendo Switch console decreased by 21.7% compared to the same period last year, while software sales for this portable platform fell by 10.2%. This dynamic is due not only to the general trend of declining player activity after the peak period of the pandemic, but also to the lack of major releases from Nintendo. The last significant release, Animal Crossing: New Horizons, took place in the spring of 2020. This lack of new games negatively affects audience interest and, as a result, sales of both the console itself and the games for it. Nintendo needs to step up its new product launches to renew interest in its products and improve its financial performance.

Despite a noticeable decline in sales, Nintendo Switch consoles remain in high demand. In the last quarter, 4.45 million units of both the classic and Lite versions of the Switch were sold. Meanwhile, both PlayStation models sold only 2.8 million units during the same period. This highlights the Switch's enduring popularity amid competition.

Square Enix is ​​growing, but not in AAA games

Square Enix delivered impressive results, demonstrating both revenue and profit growth. Compared to the same period last year, the company's revenue increased by 1.8%, while profit increased by a significant 29.5%. These figures demonstrate the stability and success of Square Enix's business in a competitive market.

The company's gaming division demonstrated negative dynamics: revenue decreased by 6%, and profit from digital entertainment fell by 34%. The company attributes this result to the unsuccessful releases of Outriders and Nier Replicant, which did not achieve the success of last year, when Final Fantasy 7 Remake was released. However, MMO games such as Final Fantasy 14 and Dragon Quest Tactics continue to show good results and increase their revenue.

Square Enix's fiscal year forecasts look quite optimistic. Overall sales are expected to grow by 2%, while profit is expected to increase by 15%. These figures indicate stable growth and a positive outlook for the company in the dynamic video game market.

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Embracer acquired 3D Realms and more

While others While publishers are cautiously analyzing their financial performance, the Swedish company is confidently investing in new projects and initiatives.

Last week, the Embracer Group holding company acquired eight gaming companies, including the renowned 3D Realms, creator of the Duke Nukem series and many modern retro shooters. The new acquisitions also include the French game development studio Digixart, the VR studio Force Field, and Ghost Ship, known for their game Deep Rock Galactic. These acquisitions underscore Embracer Group's strategy to expand its portfolio and strengthen its position in the video game market.

The deal amounts were not disclosed, but Embracer expects revenue from the new acquisitions to be between €200 million and €300 million in the next financial year. This is quite logical, because without additional investment, small companies will not be able to develop and make a profit.

Blizzard President Leaves Company

While other publishers are facing difficulties due to declining revenue in the post-pandemic period, Blizzard remains in a more stable situation and is even striving for growth.

Following a lawsuit from US authorities, employee protests, and media scandals, Activision Blizzard faces a new problem – a mass exodus of key employees. The most notable was the dismissal of Blizzard President J. Allen Brack, who held his position for two years and a total of 15 years with the company. He was followed by the departure of Head of Human Resources Jesse Meschuk. These events highlight the company's growing internal problems and may negatively impact its future.

Now, Jen O'Neil of Vicarious Visions and former Xbox executive Mark Ibara will lead Blizzard Entertainment. The company's official statement announcing the change of president emphasized that with the new leadership, Blizzard will become a more inclusive workplace for women, minorities, and people with non-traditional sexual orientations. However, the statement did not specify whether Blizzard would release the best games in the industry.

Layoffs at Xsolla

To stay on top of current trends, the head of the Xsolla payment service created a scandal without any apparent reason. This service is actively used by gaming publishers to organize monetization systems for their projects. Regular users encounter Xsolla when making purchases on the Epic Games Store and other platforms.

Xsolla CEO Alexander Agapitov sent 147 employees layoff notices, citing low productivity assessed using neural network technologies. This message was perceived as cynical. Agapitov soon added fuel to the fire by posting a provocative call on Facebook, apparently addressed to the remaining employees. These events sparked widespread discussion on social media and discussions about approaches to performance evaluation and personnel management.

The head of the payment service attributed the mass layoffs to the company's slowing growth. He also announced a search for a new PR specialist in Russia, likely to address the service's sudden reputational issues. In a competitive market, the importance of reputation cannot be underestimated, and new steps to improve the company's image will be key to its future development.

In Poland, trees were named after characters from the popular game The Witcher. This event highlights the cultural influence of video games on society. Meanwhile, Bungie and Ubisoft have filed lawsuits against cheaters who violate the integrity of gameplay. Ubisoft employees are expressing dissatisfaction with the actions of top management, indicating internal problems within the company. In addition, Krafton's IPO was valued at $3.75 billion, demonstrating strong investor interest in the gaming market.

For more exciting news from the world of game development, check out the Game Development section.