Embracer Group has released its financial report today.
What is known
Despite the excellent sales figures for Dead Island 2, Metro Exodus and a number of other games, the company is in a very unfavorable situation.
It lies in two factors: the development of Saints Row was too expensive and did not bring the expected profit.
The second factor is more significant. The head of Embracer Group Lars Wingefors (Lars Wingefors) said that they had a huge strategic deal worth $ 2 billion at the last moment. This, in turn, led to the projected loss of profits.
It’s been a challenging year that has been negatively impacted by game delays, weak consumer demand, and lukewarm reception for some major releases. Late last night we were informed that one major strategic partnership that had been negotiated for seven months would not come to fruition.
The market immediately reacted to the news and the value of Embracer Group shares fell by more than 40%. Most likely, the share price will gradually return to its previous values, but investors are unhappy with the current situation.