Embracer, Swdissh Games developer reported a 50% fall in first quarter operating profit on Thursday after the owner of the Tomb Raider franchise released fewer games.
The company said, it still expects to release games valued at 3.9 billion Swedish crowns ($372.70 million) for the financial year, however, its shares were down by 10% as it also reported a much bigger slide than expected in sales of first quarter in its Entertainment and Services segment.
Like other game developers, Embracer benefited during the Covid lockdown from growing demand, however, has since suffered development delays, poor reception, falling demand for some of its new titles.
Entertainment & Services segment sales fell 54% year-on-year in April-June to 848 million crowns, it revealed. A bigger than expected 37% fall from the company’s concensus.
Following years of studio acquisition to emerge a top global and European Games publisher, the company took on $1.5 billion in debt.
