However, Embracer’s pace of studio recovery means short-term losses.
The Embracer group has published its fourth quarter and fiscal 2022 report, showing that while net sales for the quarter and the year increased 117% and 89% respectively, its propensity to acquire studios impacted the giant’s results of editing.
However, back-to-back acquisitions can, and that’s none of the business of CEO Lars Wingefors, who called it “another steady year,” despite losing SEK 4.29 billion ($431 million) after taxes. As with any studio, greater concerns lie ahead.
Such as the 223 game development projects currently active within the company, across all its branches, which are expected to be released by fiscal year 25/26.
In total, in the last quarter alone, SEK 950.1 million ($95.9 million) was invested in game development, which the company says is “the highest amount ever recorded in a single quarter” that she has devoted to these efforts.
This big push perfectly matches Embracer’s expectations, as Wingefors “do 200 games instead of 1” logic dictates that the company looks to the future with positivity.
“Looking forward, we expect to achieve substantial organic growth in FY22/23, primarily driven by our premium games segment through multiple releases,” Wingefors said. “We plan to release new content with at least 3x higher cumulative investment value.”
For that to be the case, the best Embracer releases will have to do better than this year. Elex II for example, starts slowly, but the company remains confident that it will eventually pick up.
And although it was critically acclaimed, Embracer Group reports “no royalties were recognized during the quarter”, for The wonders of Tiny Tinathough he remains confident that will change in the new year.
Embracer’s hope is that he can have a repeat of the success Valheim seen, which is also part of why the company says a negative comparison to the “overwhelming success” of Coffee Stain Publishing last year was expected.
“We hope and believe that we have many more of these hits in the pipeline in the coming year.”
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