Tag Archives: Gaming News

Kingdom Come: Deliverance 2 brings ease at the finances of Embracer Group

Embracer Group, a major player in the gaming industry, recently released its Q3 earnings report for the fiscal year 2024/25. The report presents a mixed picture, with some segments showing declines while others have managed to grow.

Financial Overview

  • Net Sales: Embracer Group reported net sales of $685 million, a decrease of 3% compared to the same period last year. This figure includes a 7% organic growth.
  • Segment Performance:
    • PC/Console Games: This segment saw a significant decline of 23%, with sales dropping to $241 million.
    • Mobile Games: There was a slight increase of 2%, bringing sales to $155 million.
    • Entertainment & Services: This segment performed well, with a 19% increase in sales, reaching $286 million.
  • EBIT: The company’s earnings before interest and taxes (EBIT) amounted to $59 million, a decrease of 305 million SEK.
  • Adjusted EBIT: Adjusted EBIT decreased by 11% to $133 million, corresponding to an adjusted EBIT margin of 16%.
  • Cash Flow: Cash flow from operating activities was $183 million, and free cash flow after changes in working capital amounted to $97 million.

Embracer Group’s CEO, Lars Wingefors, commented on the report, highlighting the successful spin-off and listing of Asmodee Group as a non-current asset. He emphasized the company’s strong foundation for future value creation and reassured investors about the company’s performance.

Kingdom Come: Deliverance 2 Shines Bright

One of the standout performers for Embracer Group has been Kingdom Come: Deliverance 2, developed by Warhorse Studios. The game has exceeded expectations, selling nearly 2 million copies in less than a month. It set six concurrent player records on Steam, peaking at over 250,000 simultaneous players.

Kingdom Come: Deliverance 2’s success is attributed to its high-quality production and the strong support from the gaming community. The game’s launch day saw over 1 million copies sold, quickly surpassing its predecessor in both sales and reviews.

Embracer Group is optimistic about the future, with a robust roadmap of new content and updates for Kingdom Come: Deliverance 2. The company believes that investing time and resources in high-quality titles is crucial for sustained success in the competitive gaming market.

Nintendo Granted U.S. Patent No. 12,179,111 and probably is going to be used against Palworld

Nintendo has recently been granted U.S. Patent No. 12,179,111, a significant development in its ongoing legal dispute with Pocketpair, the developers behind Palworld. This patent, filed after Palworld’s launch, covers the process of aiming and capturing characters in a game, a mechanic that closely resembles the gameplay of Pokémon.

The patent describes a gameplay system where players use a “catching item” to capture a “field character” and then engage in a battle with a “fighting character”. This system is integral to the lawsuit in Japan, where Nintendo has accused Pocketpair of infringing on multiple patents related to creature-catching mechanics.

Pocketpair has confirmed a few months ago, that Nintendo’s lawsuit involves three specific Japanese patents: 7,545,191, 7,493,117, and 7,528,390. These patents cover various game mechanics, including the use and activation of “rideable characters” and the process of aiming and throwing a captured item at a character to capture it in a virtual space.

Evidently, U.S. Patent No. 12,179,111 is the American equivalent and consolidated patent of the previous three.

In a first mode, an aiming direction in a virtual space is determined based on a second operation input, and a player character is caused to launch, in the aiming direction, an item that affects a field character disposed on a field in the virtual space, based on a third operation input. In a second mode, the aiming direction is determined, based on the second operation input, and the player character is caused to launch, in the aiming direction, a fighting character that fights, based on the third operation input.

With the approval of this patent, Nintendo is now preparing to potentially extend its legal battle to the United States. The company has also filed additional patents related to creature-catching mechanics, further strengthening its case1. This move highlights the importance of protecting intellectual property and the potential for international legal disputes over game mechanics.

Nintendo’s legal strategy involves building a “patent family” where later patents are connected to earlier filings. This approach ensures that even if specific claims are rejected, the overall patent portfolio remains robust. The recent approval of U.S. Patent No. 12,179,111 is part of this broader strategy to protect its intellectual property on a global scale.

This development has significant implications for the gaming industry, as it underscores the importance of protecting intellectual property and the potential for international legal disputes over game mechanics. It also raises questions about the boundaries of game design and the extent to which companies can claim ownership over common gameplay elements.

As the legal battle between Nintendo and Pocketpair continues, the approval of U.S. Patent No. 12,179,111 marks a critical step in Nintendo’s efforts to protect its intellectual property. The outcome of this case could have far-reaching consequences for the gaming industry and the way game mechanics are developed and protected in the future.

Playstation led the win the Q3 2025 for Sony

Sony Corporation recently announced its Q3 earnings for the fiscal year 2025, revealing impressive growth across its various divisions. However, the standout performer was undoubtedly the PlayStation and gaming business, which has continued to exceed expectations and drive significant revenue growth.

Sony reported a net income of $2.45 billion for the quarter, surpassing Wall Street expectations. The company’s revenue reached $28.95 billion, with full-year revenue projections now set at $86.66 billion. This strong financial performance can be attributed in large part to the success of the PlayStation division.

PlayStation 5 Sales Surge

One of the most notable highlights from the earnings report was the PlayStation 5 sales figures. Sony sold 9.5 million PlayStation 5 consoles between October and December 2024, bringing the total lifetime sales to over 75 million units. This marks a significant milestone for the console, which has been a major driver of growth for Sony’s gaming business.

The gaming software segment also saw substantial growth, with 95.9 million units sold during the quarter. This includes 11.6 million units of first-party titles, although this was a slight decrease from the previous year. Additionally, PlayStation Network’s monthly active users increased from 118 million in FY23 Q3 to 129 million in FY24 Q3. PlayStation Plus’ revenue also saw a 20% year-on-year increase, driven by a shift towards higher-priced tiers.

Despite these successes, Sony faces challenges in the competitive gaming market. Intense competition from rivals like Xbox and Nintendo, as well as cybersecurity vulnerabilities, pose ongoing threats4. However, emerging markets and the rise of esports, mobile gaming, and advanced technologies like VR and AR present new growth opportunities for PlayStation.

With all that Sony remains optimistic about the future of its gaming business. With the launch of the PlayStation 5 Pro and upcoming highly anticipated titles like Ghost of Yotei, Monster Hunter Wilds, and GTA VI, the company expects continued growth in the coming fiscal year. Sony’s commitment to innovation and its strong brand loyalty among gamers position it well to capitalize on these opportunities.

Other Key Segments

  • Imaging & Sensing Solutions (I&SS): This segment, which includes image sensors, saw a 15% year-on-year increase in revenue. Sony’s image sensors are widely used in smartphones and other devices, contributing significantly to the company’s overall revenue.
  • Music: Sony’s music division also performed well, with a 10% increase in revenue compared to the previous year. The growth was driven by strong streaming numbers and the success of new releases from popular artists.
  • Pictures: The entertainment division, which includes movies and television production, saw a 5% increase in revenue. This was attributed to the success of new film releases and increased licensing deals.
  • Financial Services: This segment experienced a slight decline in revenue due to lower interest rates and increased competition in the financial sector.

Recap of PlayStation State of Play: February 12, 2025

February 12, 2025, was a day filled with excitement for PlayStation fans as Sony hosted its first State of Play presentation of the year. The livestream, which ran for over 40 minutes, showcased a variety of upcoming games and updates for the PlayStation 5.

This article focus on brand-new games, no remaster/remakes (full event at the end of the article).

The event kicked off with a teaser for Death Stranding 2: On the Beach, directed by Hideo Kojima. The trailer hinted at a more immersive experience, with stunning visuals and a gripping storyline.

Next up was Ghost of Yotei by Sucker Punch Productions. The game, set in a snowy, mystical world, promises to be an action-packed adventure with breathtaking graphics and a captivating narrative.

Another highly anticipated game was Marathon, a revival of the classic Bungie shooter. The new version promises to bring back the fast-paced, intense gameplay that fans loved, with updated graphics and new features1.

The presentation also included a surprise announcement for Grand Theft Auto 6, which is set to release in fall 2025. The trailer showcased the open-world gameplay and the vast, detailed environment that Rockstar Games is known for.

Other notable games featured in the State of Play included:

  • Civ 7: The latest installment in the popular Civilization series, promising new features and improvements.
  • Kingdom Come: Deliverance 2: A sequel to the critically acclaimed medieval RPG.
  • Sniper Elite: Resistance: A new entry in the stealth-action series, set in an alternate history World War II.
  • Path of Exile 2: The highly anticipated sequel to the beloved action RPG.
  • Black Ops 6: The latest installment in the Call of Duty franchise, featuring new gameplay mechanics and a gripping storyline.
  • Lost Soul Aside: An indie game with a unique art style and engaging gameplay.
  • Monster Hunter Wilds: A new entry in the Monster Hunter series, set in an expansive open world.
  • Hell is Us: A dark, atmospheric game with a gripping storyline.
  • Judas: A new game from a renowned developer, promising innovative gameplay and a compelling story.

My notable mentions:

Shinobi: Art of Vengeance

Sega has announced a new Shinobi game titled Shinobi: Art of Vengeance. This game is set to be released on August 29, 2025, for PlayStation 4 and PlayStation 5. It’s the first new entry in the series in nearly 15 years. The game will feature the classic protagonist Joe Musashi, who returns to find his village in ruins and his clan turned to stone. Players can expect challenging platforming puzzles and intense combat with a variety of weapons and Ninjutsu skills.

Warriors Abyss

Omega Force is taking the Dynasty Warriors series into roguelike territory with Warriors Abyss. This new game will feature frenzied action and a roguelite spin-off style, allowing players to take command of historic warriors and challenge countless swarms of enemies. The game will be released digitally, though no specific release date has been announced yet

The State of Play event was a major success, with fans eagerly anticipating the release of these exciting games. Sony’s commitment to delivering high-quality content for the PlayStation 5 was evident throughout the presentation, and fans can look forward to more exciting announcements in the future.

Crytek freezes Crysis 4 development

Crytek, the renowned developer behind the iconic Crysis series, recently announced that the development of Crysis 4 has been put on hold. This decision comes amidst significant layoffs affecting up to 60 employees, which accounts for 15% of their workforce.

The company cited financial sustainability and unfavorable market dynamics as the primary reasons for this move.

The Crysis series has been a staple in the first-person shooter genre since its debut in 2007. Known for its groundbreaking visuals and innovative nanosuit powers, Crysis has set a high bar for PC gaming benchmarks. The last mainline game, Crysis 3, was released in 2013, and fans have eagerly awaited a new installment ever since.

Crysis 4 was officially announced in January 2022, generating excitement among fans. The teaser showcased impressive visuals and hinted at the return of the beloved nanosuit powers. However, since the announcement, updates on the game’s progress have been scarce.

Shift to Hunt: Showdown 1896

In an effort to remain financially viable, Crytek shifted its focus to Hunt: Showdown 1896, a successful PvPvE extraction shooter. The game has seen a surge in popularity, partly due to celebrity endorsements and new content updates4. Despite these efforts, the company determined that layoffs were inevitable to continue operations.

Layoffs and Severance Packages

Crytek’s founder, Avni Yerli, expressed deep regret over the layoffs, acknowledging the hard work and dedication of the affected employees. The company has committed to offering severance packages and career assistance services to support those impacted2.

Crytek’s situation is not unique, as the video game industry has faced numerous challenges in recent years. Market dynamics, rising costs, and changing consumer preferences have forced many studios to reevaluate their strategies and make difficult decisions4.

While Crysis 4 is currently on hold, Crytek remains committed to Hunt: Showdown 1896 and the continued development of its game engine, CRYENGINE. The company hopes to return to Crysis 4 development when the financial situation stabilizes.

The decision to put Crysis 4 on hold is a tough one for both Crytek and its fans. However, it reflects the harsh realities of the gaming industry and the need for studios to adapt to survive. As fans, we can only hope that Crytek will find a way to bring the next chapter of Crysis to life in the future.

Remedy got Alan Wake 2 finally being profitable while Control 2 is now on full development phase

Remedy Entertainment, the renowned Finnish game developer behind hits like “Alan Wake” and “Control,” has announced some exciting financial news. In their latest earnings report, Remedy revealed that Alan Wake 2 has finally turned a profit, while Control 2 is set to enter full production.

Alan Wake 2″ released in October 2023, has been a long journey for Remedy. The game recently surpassed the two million sales mark, allowing it to recoup its development and marketing costs. This milestone means that Remedy has started accruing royalties from the game, marking a significant financial victory for the studio3.

The success of “Alan Wake 2” can be attributed to several factors. The release of the The Lake House expansion, the physical deluxe edition, and updates to optimize the game for PS5 Pro have all contributed to its sustained popularity. The game’s sales saw a significant boost in October 2024, thanks to these efforts.

Another exciting announcement from Remedy is that Control 2 is entering full production. This project, financed through a partnership with Annapurna Interactive, has been in the works for some time1. With the production pipelines established and asset creation verified, Remedy is ready to scale up production.

“Control 2” is highly anticipated by fans of the original game, and its development has been progressing smoothly. The studio has also provided updates on other projects, including FBC: Firebreak, a cooperative multiplayer shooter set in the Control universe, and the remakes of the first two Max Payne games.

Q3 2024 Highlights:

  • Record Revenue: Remedy reported a significant increase in revenue for Q3 2024, reaching approximately $20 million (EUR 17.9 million), more than double the previous year’s figure.
  • Positive Operating Profit: The company achieved a positive operating profit of approximately $2.7 million (EUR 2.4 million), compared to a loss of EUR 4.2 million in the same period last year.
  • Cash Flow: Cash flow from operations was positive at approximately $7.4 million (EUR 6.6 million).
  • Development Fees: Development fees reached approximately $19 million (EUR 17 million), 2.5 times the amount in the comparison period.
  • Year-to-Date Performance: Year-to-date revenue was approximately $43.7 million (EUR 39 million), a 65% increase from the previous year. However, year-to-date operating profit remained negative at approximately $3.3 million (EUR 2.9 million), showing improvement from the previous year.
  • Total Cash Level: The total cash level increased to approximately $34.9 million (EUR 31.2 million), up by EUR 5 million from the previous quarter.

Remedy’s CEO, Tero Virtala, expressed confidence in the studio’s future, stating:

We are in a great place to begin our strategy period and have set targets we are confident in reaching.

With Alan Wake 2 now profitable and multiple exciting projects in the pipeline, Remedy Entertainment is poised for continued success.

SHIFT UP continues the financial grind with Stella Blade heading to its 1st anniversary

Shift Up, the South Korean game developer behind Stellar Blade and Goddess of Victory: Nikke, has reported record-breaking revenue and operating profit for the year 2024. The company’s financial success can be attributed to the strong performance of these two titles, which have captured the attention of gamers worldwide.

Stellar Blade, an action-adventure game set in a post-apocalyptic world, was released on PlayStation 5 on April 26, 2024. The game follows the protagonist, Eve, as she embarks on a mission to reclaim Earth from monstrous creatures known as Naytibas. Stellar Blade has been praised for its stunning visuals and engaging combat mechanics, which emphasize precise timing and strategic parrying.

In 2024, Stellar Blade generated $43 million in royalties for Shift Up, thanks to constant updates, collaborations (such as the Nier: Automata DLC), and a dedicated player base. The game’s success on PlayStation 5 has paved the way for a highly anticipated PC release in 2025, which is expected to further boost its revenue.

Meanwhile, Goddess of Victory: Nikke is an immersive sci-fi RPG shooter that has taken the mobile gaming market by storm. Released on Android and iOS in 2022 and later on Windows in 2023, the game features a gacha system and a variety of unique characters with distinct combat specialties5. Players command a squad of Nikkes, humanoid weapons created to reclaim Earth from the Rapture invasion.

In 2024, Goddess of Victory: Nikke generated $105.4 million in revenue, accounting for 69.6% of Shift Up’s total revenue. Despite fierce competition in the mobile gaming market, the game managed to retain its player base through regular events, collaborations, and updates1. Shift Up also plans to officially launch the game in China in 2025, with pre-registrations already meeting expectations.

Shift Up’s total revenue for 2024 reached $151.4 million, a 30.4% increase from the previous year. The company’s operating profit was $102.3 million, up 33.8% year-over-year, while net profit grew 33.7% to $98.2 million. These impressive financial results mark a record year for Shift Up in terms of revenue and operating income1.

Looking ahead, Shift Up plans to expand its workforce to 400-420 employees by the end of 2025. The company is also working on a new game titled Project Witches, which is expected to launch after 2027. Additionally, Shift Up will continue to support and update Stellar Blade and Goddess of Victory: Nikke, ensuring that both games remain popular among players.

Shift Up’s success in 2024 is a testament to the company’s innovative game design and ability to engage players with captivating content. With Stellar Blade and Goddess of Victory: Nikke leading the charge, Shift Up is well-positioned to continue its growth and dominance in the gaming industry.

Square Enix’s Latest Earnings Report: A Mixed Bag of Results

Square Enix recently released its financial earnings report for the nine months ending December 31, 2024. The report paints a mixed picture of the company’s performance, with some segments showing growth while others experienced declines.

Financial Overview

Square Enix reported a decrease in net sales, which fell to ¥248.5 billion from ¥257.6 billion the previous year. This decline was primarily attributed to weakness in existing titles within its mobile and PC browser sub-segment. Despite this, the company saw a 70.3% increase in operating profit for its HD games subsection, reaching ¥4.6 billion ($30.2 million). This growth was driven by lower development costs and advertising expenses, as well as stronger-than-expected sales of Dragon Quest 3 HD-2D.

Game Performance Highlights

  1. Dragon Quest 3 HD-2D: This remake exceeded expectations, contributing significantly to the HD games sub-segment’s profitability. The game’s modernized graphics and nostalgic appeal resonated well with fans, leading to stronger sales than initially anticipated.
  2. Final Fantasy 14: Dawntrail: Released in July 2024, this expansion for Final Fantasy 14 saw a 26.4% rise in net sales for the MMO sub-segment, reaching ¥44 billion ($288.6 million). The expansion’s success helped offset some of the declines in other areas1.
  3. Mobile and PC Browser Games: This sub-segment faced significant challenges, with a 58.5% decline in operating profit to ¥5.6 billion ($36.7 million). Despite the launch of the puzzle RPG Emberstoria in November 2024, the segment struggled due to weakness in existing titles and a valuation write-down associated with content production.

Looking ahead, Square Enix remains optimistic about its future prospects, with no changes to its forecast for the fiscal year announced during its FY24 results last May. The company is banking on upcoming titles and continued growth in its successful segments to drive future performance.

Nihon Falcom will keep going despite Q1 2025 could have been better

Nihon Falcom recently released their first-quarter earnings for 2025. The company reported a significant decline in revenue, which was JP¥374.0 million (approximately $2.47 million), a 46% decrease compared to the same quarter in 2024. The earnings per share (EPS) also saw a drop to JP¥7.88 (approximately $0.05), compared to JP¥29.09 (approximately $0.19) in Q1 2024.

Focus on Games Highlights

Nihon Falcom has been a pioneer in the JRPG genre, with notable series like Ys, Dragon Slayer, and The Legend of Heroes. Here are some highlights of their recent focus on games:

  1. Ys Series: The Ys series continues to be a flagship franchise for Nihon Falcom, with recent titles like Ys VIII: Lacrimosa of Dana and Ys IX: Monstrum Nox receiving critical acclaim. These games have been well-received for their engaging storylines and polished gameplay, contributing significantly to the company’s product sales.
  2. The Legend of Heroes: This series has expanded significantly, with titles like Trails of Cold Steel IV and Trails into Reverie gaining popularity among fans. The latest entry, The Legend of Heroes: Kai no Kiseki, has sold over 8 million copies across various platforms, boosting the company’s product sales.
  3. Multi-Platform Releases: Nihon Falcom has been focusing on releasing their games across multiple platforms, including PlayStation, Nintendo Switch, and PC, to reach a broader audience. This strategy has helped increase their market presence and attract new players.
  4. Western Localization: The company has put greater emphasis on English translations and releases of their games, making them accessible to Western audiences. This effort has paid off, as Western fans have shown strong interest in Nihon Falcom’s titles, contributing to their global reach.

Despite the recent dip in earnings, Nihon Falcom’s dedication to innovation and quality has solidified their reputation as a leading developer in the JRPG genre. Their upcoming releases, including Ys X and a new installment in the Trails series, are expected to further boost their performance in the coming quarters.

A perfect moment to remember the 2011 Playstation Network crisis

The PlayStation Network (PSN) hacking incident of 2011 remains one of the most significant cybersecurity breaches in gaming history. This event not only disrupted services for millions of users but also exposed the vulnerabilities inherent in even the most robust digital infrastructures.

As we reflect on this infamous incident, it’s crucial to understand its lasting effects and how it correlates with the recent PSN outage on February 8, 2025.

The 2011 PlayStation Network Hack: A Timeline of Chaos

The hacking incident began in April 2011 when an “external intrusion” compromised the personal details of approximately 77 million PSN accounts. The breach exposed sensitive information such as usernames, passwords, email addresses, physical addresses, and even credit card details. The attack lasted for 23 days, during which Sony had to take the PSN offline to rebuild its security infrastructure.

The aftermath saw Sony offering compensation to affected users and facing scrutiny from government officials worldwide.

The immediate impact of the hack was a massive disruption of services. Users were unable to access their accounts, purchase games, or engage in online multiplayer activities. The breach also led to a significant loss of trust in Sony’s ability to protect user data, resulting in a tarnished brand image. Financially, the incident cost Sony an estimated $171 million, including compensation payouts and the expenses associated with enhancing security measures.

In the long term, the hack prompted a reevaluation of cybersecurity practices within the gaming industry. Sony implemented stricter security protocols, including the encryption of credit card information and the introduction of two-factor authentication for account logins. These measures have since become standard practices across the industry, highlighting the importance of robust cybersecurity in protecting user data.

The February 8, 2025 PSN Outage: Echoes of the Past

Fast forward to February 8, 2025, and the PSN experienced another significant outage. This recent disruption, which lasted nearly 20 hours, saw users unable to access the PlayStation Store, PlayStation Plus, and multiplayer games. The timing of the outage, coinciding with a promotional weekend for a popular game, only added to the frustration of millions of gamers.

While Sony has yet to confirm the cause of the outage, many users and experts speculate that it could be the result of another cyberattack. The parallels between the 2011 hack and the recent outage are striking, with both incidents resulting in prolonged service disruptions and raising concerns about the security of user data.

And labeling as “operational issue” and the implicit attempt that this incident will quiet down with time, doesn’t help the “gaming PTSD” that some of those of have the 2011 incident still fresh even almost 14 years later.

The Importance of Vigilance and Preparedness

The recurring nature of these incidents underscores the need for constant vigilance and preparedness in the face of cyber threats. For users, it’s essential to monitor account activity and be wary of suspicious communications requesting personal information. Sony’s recommendations during such events include checking bank statements for unauthorized transactions and avoiding sharing personal information in response to unsolicited requests.

For companies like Sony, investing in advanced cybersecurity measures and maintaining transparent communication with users during outages are critical steps in rebuilding and sustaining trust. The gaming community’s resilience and adaptability in the face of these challenges are also commendable, as gamers continue to find ways to stay connected and engaged despite disruptions.

The infamous PlayStation Network hacking of 2011 and the recent February 8, 2025 outage serve as stark reminders of the ever-present threat of cyberattacks. These incidents highlight the importance of robust cybersecurity measures, proactive monitoring, and transparent communication. As the gaming industry continues to evolve, so too must its approach to protecting user data and ensuring uninterrupted service. By learning from the past and preparing for the future, we can hope to minimize the impact of such disruptions and maintain a secure and enjoyable gaming environment for all.