Tag Archives: Q3 2025

Business, Games, 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.

Business, Gaming, News, Playstation

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.

Business, Games, Gaming, News

Sega Q3 2025 report doesn’t reveal Metaphor: ReFantazio initial performance of a full quarter

Sega Sammy Holdings Inc. recently released its Q3 2025 earnings report, revealing a mix of successes and challenges for the gaming giant. The report, released on February 7, 2025, showcased impressive sales figures for some of their flagship titles, while also highlighting areas that need improvement.

One of the standout performers in Sega’s portfolio was Sonic X Shadow Generations. This enhanced remaster of the beloved platformer Sonic Generations has surpassed 2 million copies sold worldwide since its launch in October 2024. The game received rave reviews for its new Shadow Generations campaign, which allowed players to delve deeper into the backstory of the enigmatic Shadow the Hedgehog.

The success of Sonic X Shadow Generations can be attributed to its nostalgic appeal and the introduction of new gameplay mechanics, such as Chaos Control and Chaos Snap, which set Shadow apart from Sonic. The game’s sales were further boosted by the release of the Sonic the Hedgehog 3 movie, which reached $460 million in worldwide box office revenue.

Metaphor: ReFantazio: A Strong Debut

Another notable mention in Sega’s earnings report was Metaphor: ReFantazio, a JRPG developed by Atlus. The game made a remarkable debut, selling 1 million copies on its first day of release. While Sega did not provide updated sales figures for Metaphor: ReFantazio in the report, the initial numbers indicate a strong start for the title.

Metaphor: ReFantazio has been praised for its engaging story, rich character development, and innovative combat system. The game’s success is a testament to Atlus’ ability to create compelling RPG experiences that resonate with fans.

Challenges and Cancellations

Despite the successes, Sega’s earnings report also highlighted some challenges. The company announced the cancellation of Football Manager 25, citing external discussions and careful consideration with Sega. This decision reflects the company’s commitment to focusing on its most promising projects and ensuring the highest quality for its fans.

As Sega moves forward, the company is optimistic about its future prospects. With strong sales from Sonic X Shadow Generations and the promising start of Metaphor: ReFantazio, Sega is well-positioned to continue its growth in the gaming industry. The company’s focus on innovative gameplay, engaging stories, and cross-media synergy will be key to its success in the coming years.

Business, Gaming, News

The first earning report of Kadokawa Corporation with Sony owning 10% of shares

Kadokawa Corporation recently released its earnings report for the third quarter of fiscal year 2024, and the results have been quite promising. However, a significant development within the company has garnered considerable attention: Sony’s strategic investment in Kadokawa and its implications for FromSoftware, a subsidiary of Kadokawa known for its critically acclaimed video games.

Sony’s Stake in Kadokawa: In a strategic move, Sony has increased its ownership stake in Kadokawa to 10%, making it the largest external shareholder. This investment marks a significant milestone in the relationship between the two companies, which have a history of collaboration in various entertainment sectors, including gaming and media production.

FromSoftware’s First Earnings Report Under Sony’s Influence: With Sony’s backing, FromSoftware has reported its first earnings under this new partnership. The results have been encouraging, reflecting the potential synergies between the two companies.

  • Revenue Boost: FromSoftware’s revenue saw a remarkable increase, driven by the successful launch of new game titles and the continued popularity of existing franchises like Dark Souls and Elden Ring.
  • Market Expansion: Leveraging Sony’s extensive distribution network and marketing prowess, FromSoftware has been able to expand its market reach, particularly in North America and Europe.
  • Enhanced Development Capabilities: The collaboration has enabled FromSoftware to access additional resources and expertise, leading to improvements in game development processes and overall product quality.

Financial Performance: Kadokawa’s overall financial performance for the third quarter ended December 31, 2024, has also shown positive growth.

Highlights:

  • Sony’s Stake: Sony has increased its stake in Kadokawa Corporation to 10%, making it the largest shareholder.
  • FromSoftware’s Earnings: With Sony’s backing, FromSoftware, known for titles like Dark Souls and Elden Ring, is expected to see significant growth in its earnings.
  • Strategic Alliance: The partnership aims to enhance digital content and entertainment offerings, including joint ventures in live-action films, TV dramas, and anime.

Financial Performance:

  • Revenue: Kadokawa reported a revenue of ¥21.12 billion for the third quarter ended December 31, 2024, which is approximately $139.8 million based on the current exchange rate of 1 USD = 151.41 JPY.
  • Earnings: The company posted earnings of ¥1.75 billion for the trailing twelve months (TTM) ending December 31, 2024, which translates to approximately $11.5 million.
  • Year-over-Year Growth: Kadokawa’s earnings for 2024 (TTM) showed a significant increase of 35.67% compared to the previous year.

Kadokawa’s strategic alliance with Sony and other partners has played a pivotal role in driving growth and innovation across its business segments.

  • Business Alliances: In addition to the partnership with Sony, Kadokawa has formed a business alliance with Kakao piccoma to expand its digital content and entertainment offerings.
  • Capital Alliances: The company has issued new shares through third-party allotments to strengthen its capital base, ensuring sustainable growth and resilience.

Looking ahead, Kadokawa remains optimistic about its growth prospects, driven by its strategic alliances and continued focus on digital content and entertainment. The partnership with Sony, in particular, is expected to yield long-term benefits, enhancing Kadokawa’s position in the global entertainment industry.

FromSoftware, as a key subsidiary, stands to gain significantly from this collaboration, with the potential for further innovation and success in the gaming sector.

In conclusion, Kadokawa’s recent earnings report and strategic alliance with Sony underscore the company’s commitment to growth and innovation. The positive impact on FromSoftware’s performance highlights the potential for continued success in the dynamic and competitive entertainment industry.

Business, Gaming, News

Take-Two Interactive doubles down on Grand Theft Auto VI release on earnings report

Take-Two Interactive, one of the leading names in the gaming industry, recently announced its financial results for the third quarter of fiscal year 2025. The company reported net bookings of $1.37 billion, a 3% increase compared to the previous year. This performance was within the company’s projected guidance range, and Take-Two reaffirmed its full-year net bookings outlook of $5.55 billion to $5.65 billion.

The earnings report highlighted the strong performance of several core franchises, including NBA 2K25, Grand Theft Auto Online, and Red Dead Redemption 2. The company’s CEO, Strauss Zelnick, expressed confidence in the upcoming release schedule, which includes highly anticipated titles such as Sid Meier’s Civilization VII, Mafia: The Old Country, and Grand Theft Auto VI (GTA 6).

GTA 6 Release Update

During the earnings call, Zelnick provided an update on the much-anticipated Grand Theft Auto VI. The game is still on track for a Fall 2025 release, although Zelnick mentioned the possibility of a slight “slippage”. He emphasized that while the company feels confident about the release date, they are cautious about making absolute guarantees2.

The announcement has generated significant excitement among fans, as GTA 6 is expected to be a major blockbuster. The company has not yet revealed the exact release date, but they assured investors that more information will be provided in due course.

In addition to GTA 6, Take-Two also announced the release of Borderlands 4 sometime in 2025. The company’s robust pipeline includes other titles such as Project ETHOS and CSR 3, further solidifying its position as a powerhouse in the gaming industry.

Take-Two Interactive’s Q3 2025 earnings report paints a promising picture for the company’s future. With strong financial performance and an exciting lineup of upcoming releases, the company is poised for continued growth. The anticipation surrounding GTA 6 is a testament to the enduring popularity of the franchise and the high expectations of gamers worldwide.

Business, Gaming, News

Bandai Namco grew at Q3 2025

Bandai Namco Holdings Inc. recently released its consolidated financial report for the third quarter (nine months) of the fiscal year ending March 31, 2025. Here’s a detailed breakdown of their earnings:

  • Net Sales: $6.29 billion, a significant increase of 23.8% compared to the same period last year.
  • Operating Profit: $1.34 billion, showing a remarkable growth of 129.0%.
  • Recurring Profit: $1.41 billion, up by 106.9%.
  • Profit Attributable to Owners of Parent: $1.00 billion, an increase of 113.1%.
  • Basic Earnings per Share (EPS): $1.97.
  • Diluted Earnings per Share (EPS): $1.97.

Financial Position (in USD)

  • Total Assets: $7.50 billion as of December 31, 2024.
  • Net Assets: $5.50 billion as of December 31, 2024.
  • Equity Ratio: 73.2% as of December 31, 2024.

Cash Dividends (in USD)

  • Annual Cash Dividends: $0.60 per share for the fiscal year ending March 31, 2025.

Bandai Namco has revised its projections for the fiscal year ending March 31, 2025, with an optimistic outlook for continued growth in net sales and profits.

Bandai Namco’s impressive financial performance reflects its strong market position and successful strategies. The company’s focus on innovation and expansion is likely to drive further growth in the coming years.

Business, Gaming, News

EA had a thing to say about is Q3 2025 for Dragon Age: The Veilguard

Electronic Arts (EA) recently announced its Q3 FY25 earnings, revealing a mix of successes and challenges across its portfolio. The company reported net bookings of $2.215 billion for the quarter, with notable performances from several franchises.

EA SPORTS FC 25 continued its strong momentum, achieving record success with the Team of the Year event, driving engagement levels above expectations. The franchise has grown more than 70% over the last five fiscal years, making it one of the biggest sports entertainment properties in the world.

American Football also saw double-digit growth in weekly active users year-over-year, and remains on pace to surpass $1 billion in net bookings for fiscal year 2025.

However, not all games performed as expected. Dragon Age: The Veilguard, despite receiving positive reviews from critics and players, did not resonate with a broad audience. EA CEO Andrew Wilson attributed this to the game’s lack of live service features, which are increasingly sought after by modern gamers. The game’s sales performance missed projections by 50%, reaching only about 1.5 million players.

Despite these challenges, EA remains confident in its long-term strategy and has announced a $1 billion accelerated stock repurchase program, bringing total stock repurchases to $2.5 billion within the first year of its $5 billion authorization.

Despite the strong performance in certain areas, EA faces challenges in maintaining its growth trajectory. Analysts have noted that EA’s revenue guidance for the next quarter is lower than expected, with adjusted earnings projected at $3.08 per share.

The company has missed Wall Street’s revenue estimates four times over the last two years, indicating potential volatility in its financial performance.

Business, Gaming, News, Nintendo

Nintendo announces Q3 2025 results and seems that expectations for Nintendo Switch 2 are being felt monetarily

Nintendo recently reported its Q3 financial results for the fiscal year ending March 2025, revealing a significant downturn in its financial performance. The company posted $1.10 billion in revenue, a notable decline from $1.70 billion a year ago. This 31.4% drop in revenue was accompanied by a decrease in earnings per share (EPS) from 117.45 yen to 110.40 yen.

Nintendo Switch Sales

One of the most striking aspects of Nintendo’s Q3 report was the 30.6% year-over-year decline in Nintendo Switch hardware sales, with only 4.82 million units sold during the quarter. This brought the total sales for the fiscal year to 9.54 million units, significantly lower than the previous year. The company has now revised its sales forecast for the Switch from 12.5 million units to 11 million units for the fiscal year.

Software Sales

Software sales also saw a decline, with 123.98 million units sold during the nine-month period, down 24.4% from the previous year. Despite the release of popular titles like The Legend of Zelda: Echoes of Wisdom and Super Mario Party Jamboree, the overall software sales were not enough to offset the decline in hardware sales.

Nintendo Switch 2 Expectations

Amidst these challenges, Nintendo has announced plans to launch the Nintendo Switch 2 later this year. The new console is expected to rejuvenate the company’s hardware sales and reinvigorate its market position1. However, Nintendo has also flagged that Switch games may not be fully compatible with the Switch 2, which could impact consumer decisions.

The anticipation of the Switch 2 has led to a slowdown in sales of the original Switch, as consumers hold off on purchases in anticipation of the new console. This has resulted in Nintendo reducing its annual dividend forecast and net sales expectations for the fiscal year2. Despite these challenges, Nintendo remains optimistic about the potential of the Switch 2 to drive future growth.

Nintendo’s Q3 results highlight the challenges the company faces as it transitions to its next-generation console. While the decline in sales is concerning, the upcoming launch of the Nintendo Switch 2 offers a beacon of hope for the company’s future. Investors and gamers alike will be closely watching how Nintendo navigates this pivotal period in its history.