Sales figures, studio purchases, financial statements, developer transfer window, investments… if these topics interest you, you’ve come to the right place. We offer you an update on last week’s business news.
- Nintendo: reorganization in Europe, innovation in DeNa
- Activision Blizzard: low results among investigations
- Bandai Namco has changed its goals upwards thanks to the Elden Ring
- Take-Two: a mixed record, but GTA V continues to impress
- In short news of the week
- Our other business articles of the week
Nintendo: reorganization in Europe, innovation in DeNa
This week we learned that the Nintendo Switch has passed the milestone of 114 million units sold, with OLED now leading sales, which are starting to slow down. In short, Nintendo is doing very well and has definitely started preparing for the announcement and launch of the next machine.
By the way, Mario Kart 8 Deluxe almost 50 million copies sold worldwide, and Animal Crossing: New Horizons was crowned the best-selling game in Japanese history. All this data can be found in our dedicated articles that we have put together for you, and we will look at The status of Nintendo in Europe. On the sidelines of publishing its results, the company announced a reorganization of its European divisions.
Very concretely, it means that Nintendo France, Nintendo Benelux and Nintendo Iberica will “disappear” in favor of Nintendo Europe, led by Stephan Bole, between 2023 and 2024. The news caused an uproar, especially since Nintendo did not detail the consequences of these disappearances, contenting itself with saying that the aim was to improve the commercial efficiency and speed of decision making. But fear not! Contacted by Gamekult, featured in Nintendo France that no office is closed, and that employees do not have to pack their boxes. They all stayed in place, became Nintendo Europe AG employees onlyand no need to move to Germany, where Nintendo Europe’s offices are located.
The activities of these three merged companies will continue in each of the newly established branches.
In the title, we told you news related to DeNa and Nintendo. During the publication of the financial results, Nintendo announced that a further step was taken in the “digitization” of its activity. Nintendo and DeNa (the manufacturer’s mobile partner) actually indicated that a new subsidiary was created by the two entities. It is Nintendo Systems, 80% owned by Nintendo and 20% by DeNA. The goal of this new entity is to “Strengthening the digitization of Nintendo’s business, the joint venture will focus on research and development, as well as the creation of value-added services to strengthen Nintendo’s relationship with consumers.” The work, which must begin April 3, 2023 under the aegis of Tetsuya Sasaki, will focus around the Nintendo Account. This account will move from the Switch to the new console, so it is important for the company to strengthen this aspect.
Activision Blizzard: low results among investigations
While waiting to find out if the competition authorities approve or disapprove the takeover of the company by Microsoft, Activision Blizzard King continues to publish its financial results. Like many others, the company therefore presented its results for the quarter ended September 30th. So they ignored the performance of Call of Duty: Modern Warfare 2 (2022) and Overwatch 2, which was a hit. The first has arrived billion dollars generated in 10 days, while the latter is said to have attracted more than 35 million players. Enough to announce excellent results for the next quarter, but in the meantime, these are the declining results published. The turnover decreased by 300 million compared to last year, worth 1.7 billion euros.
At his side, Operating income increased from 822 to 484 million euroswhile the net profit was 424 million against 637 million last year. There is nothing to worry about for the shareholders, who know very well that the fall numbers will raise the bar. Because on the sidelines of Call of Duty Modern Warfare 2 and Overwatch 2, Activision Blizzard is preparing to launch a new extension for World of Warcraft and Call of Duty Warzone 2.0.
where things can be done the complexity is on China’s side. The distribution partnership between NetEase and Activision Blizzard ends in January, and the company headed by Bobby Kotick I’m not sure if I can renew it. Finally, note that out of 368 million active users, 200 million are in Candy Crush, which, 10 years after its launch, continues to bring in a lot of money.
Bandai Namco has changed its goals upwards thanks to the Elden Ring
December 8 next, during the Game Awards, there is a good chance that a representative of Bandai Namco will take the stage to claim the title of Game of the Year. Things are obviously not taken yet, but the Elden Ring is a favorite. Meanwhile, the publisher has published its results for the first fiscal semester, and we can say that everything is going well. The situation was so favorable that the company raised its goals. For the period from April to September, Bandai Namco announced a turnover of 3.2 billion euros against 2.6 billion last year, an operating profit that almost doubled by building itself of 1.1 billion euroswhile the the net profit increased from 270.9 to 456.1 million.
Without any surprise, and discarding Dragon Ball that remains the flagship license, it is the Elden Ring and the 16 million copies sold that allowed the company to obtain such results, followed by titles like JoJo’s Bizarre Adventure: All-Star Battle R and Digimon Survive. Overall, Bandai Namco has distributed in 24.5 million games worldwide, and is expected to sell 46 million by the end of the fiscal year. Because of these results, the company revised its goals upwards. Now, the company expects to announce a turnover of 6.4 billion eurosan operating profit of 876 million, and a net profit of 650 million for the entire fiscal year. What touched the record, established in the previous financial year.
Take-Two: a mixed record, but GTA V continues to impress
This is the great paradox of some financial statements: we can do very well, and show the results of a sharp decline. This is the case of Take-Two Interactive, which suffered huge losses in the quarter that ended on September 30. The turnover, at 1.4 billion, increased, but the operating profit was -252 million euros, while the net profit from +10.2 million to -256 million. And yet, all is well. Indeed, these large losses are explained by the gradual digestion of the acquisition of Zynga, which valued Take-Two at $12 billion. As the balance sheet shows, everything is fine:
We continue to make excellent progress integrating with Zynga, and we remain very optimistic about the vast long-term growth potential of the mobile industry, which is expected to reach more than $160 billion gross. income over the course of the next four years.
The words are clear, mobile is a priority for Take-Two, which does not neglect the big products. What comes out of this balance is huge in-game revenue growth. According to the data provided, these recurring costs (ingame currency, DLC, in-app purchases and advertising) have increased to 95% and now represents 79% of turnover in general. At the end of the fiscal year, Take-Two Interactive must announce a turnover approaching 5.5 billion euroswhich is accompanied by a net loss of 630 million.
On the gaming side, the data provided is mind-boggling, as is always the case when it comes to Grand Theft Auto V or Red Dead. Take-Two is proud to announce that GTA V already exceeded 170 million copies distributed worldwide, combined for a total of 385 million for the franchise. NBA 2K continues its journey with an episode 2K23 that has already been distributed to 5 million units, and a franchise worth 130 million units distributed. To complete the podium, we add the Red Dead, along with The second opus has now sold 46 million units, out of a total of 70 million for the entire license. Behind these three monsters, we find Borderlands with 16 million copies for 3, 77 million for the Civilization franchise with a total of 63 million games distributed, and the Bioshock license, which accounted for 41 million copies shipped.
In short news of the week
- 35 million players launched Overwatch 2 since its launch on October 4.
- Animal Crossing: New Horizons is done the best-selling game in Japanese history. It goes beyond the first generation of Pokémon.
- Roblox’s revenue increased by 2%, but losses in the quarter amount to 300 million
- riots edit itself League of Legends and Teamfight Tactics in Southeast Asia.
- Ubisoft return pre-order for the remake of Prince of Persia: The Sands of Time, but the project is not not cancelled.
- Three former members of ZA/UM (Disco Elysium), take the new shareholders to court for wrongful dismissal and fraudulent takeover.
- Repair revenue of 7% despite the poor Alan Wake Remastered.
- 10 million players playing Death Stranding.
- Lionsgate plans to develop a AAA based on the John Wick license.
- Call of Duty Modern Warfare 2 passed the billion dollar mark generated within 10 days.
- The Project CARS license is dead. EA canceled work in progress.