Swedish gaming powerhouse Embracer Group has recently unveiled its financial performance for the quarter ending June 30th, revealing a notable 34% dip in net sales within its PC and console division. The company reported revenues of SEK 2.7 billion ($6.8 million), marking the steepest decline among its various gaming segments. This downturn is attributed to what Embracer describes as “tough comparisons,” highlighting the absence of blockbuster titles akin to the success of Dead Island 2, which had a robust launch in the previous year.
Financial Overview
In addition to the challenges faced in its core gaming segment, Embracer’s entertainment and services sector also experienced a significant contraction, plummeting by 54%. Overall, the company’s net sales fell by 24%, totaling SEK 7.9 billion ($71 million). The adjusted EBIT reflected a similar trend, decreasing from a margin of 16% last year to 10% in the first quarter of 2024/25.
Moreover, Embracer’s workforce has seen a substantial reduction, with developer headcount down by 41% over the past year, now standing at 6,659 creators. The total employee count has similarly contracted by 34.7%, bringing the number to 10,844.
Looking Ahead
Despite the disappointing results from the PC and console sector, CEO Lars Wingefors remains optimistic about the future trajectory of the company. He noted, “The transformation of our PC/Console business continues, and the pipeline of games looks solid.” Embracer anticipates releasing completed games valued at SEK 3.9 billion ($350 million) throughout the financial year. Among the highly awaited titles is Kingdom Come: Deliverance II, which has been officially slated for global release on February 11th, 2025.