Devolver Digital saw its share price plummet in the wake of revised sales expectations after a slower than predicted start to the year.
First reported by GameIndustry,biz, the company's share price currently sits at 59.90 GBX at the time of writing. Although Devolver's share price has been steadily decreasing over the course of the year, it took a nosedive from 136.50 GBX to a low of 58.50 GBX in the space of just four days.
The company had the following to say in its statement:
"Sales from new games released in the first five months of FY22 have been slower than expected, reflecting a competitive release window and specific factors for each title which are being actively addressed for future titles. At the same time there has been an expected step-up in amortisation costs related to these heavier-investment games upon release, as well as increases in general operating expenses due to inflation, headcount and marketing."
Despite the rather dire figures, Devolver nevertheless expects full-year revenue to be up by at least 30% to between $130 million and $140 million, with much of its sales coming from so-called "evergreen" titles from tis back catalogue:
"The board expects revenues and profit to be weighted towards the second half of FY22, supported by highly anticipated new title releases, strong demand from subscription platforms and continued evergreen back catalogue sales at year-end."
The company recently completed its 2022 Showcase for the Summer Game Fest, including a small handful of announcements for games due within the coming months. Although not yet confirmed for Switch, one of Devolver's most high profile releases will undoubtedly be the revival of the Monkey Island franchise, Return to Monkey Island.
[source gamesindustry.biz]
Comments 39
That’s terrible news. I enjoy many of their games. I hope they’ll recover.
That's disappointing they do some really interesting stuff.
oh no! I hope they can bounce back!! I shared the link to their recent video on Twitter and plan to buy The Plucky Squire if it hits physical, what more can I do!? =P
Same as all the other comments. Devolver does good work. I hope they get back to where they were and stick around for a long while.
So maybe I'll eventually get Loop Hero to show some support. And it's still on sale.
Oh crap I smell a takeover.
Not my fault, I've been asking them to put Enter the Gungeon on sale again once a month for the last 7 months. They have not. Guess they don't want my $8.
That sounds like a hefty drop for simply not tracking part of the years expected sales.
News like this from small developers without deep pockets don't sound good for the season of upcoming releases.
They messed with the metaverse. Of course shares were going to plummit.
Not trying to be a smart a$$, but if I had a gun to my head, I couldn’t tell you one game developed by Devolver other than Monkey Island, which I only know from reading this article. I hear the company’s name here and there and know they had their own little showcase not long ago, but that’s about it.
@HollowSpectre The whole company is formed for a takeover by Tencent, Microsoft, Amazon or another really big fish.
I hate how publicly owned companies should grow indefinitely or be punished.
still not over them poking fun at the gaming industry, as usual, in their showcase, followed by releasing 3 games for a subscription-only netflix mobile service
@ArcadeEighty They have a number of creative and stylish games such as
Trek to Yomi
Katana Zero
My Friend Pedro
The Messenger
Death's Door
CARRION and more
You should definitely look into their portfolio and check out some of the games I mentioned. You might find a hidden gem or two
@ArcadeEighty Hotline Miami, Enter the Gungeon, Minit, The Messenger, Gris, Katana Zero, My Friend Pedro, Fall Guys, and Death's Door are a few of the more well-known games they've published.
I guess they should have just went with the video game singularity.
I legit want Tom Clancy's Animal Crossing. Make it happen, Devolver!
I'd never heard of GBX before. Apparently it means pence.
They really listed themselves on a UK stock exchange, then hiked their shipping costs to the UK? Somehow I'm not surprised.
That’s a bummer. Devolver is one of my favorites.
I'm surprised considering inscryption was a major success and published by devolver digital.
@HollowSpectre they aren't big enough or well known enough for anyone to be interested
Good lord, a 57% drop in share price in a single day?
@ArcadeEighty same I think they make a bunch of indie games for the switch
This article is missing some important context: the stock was never worth very much to begin with. The 136 GBX peak is just $1.64 US. It fell to about 70 cents a share. So it is basically a "penny stock," not exactly a heavyweight in which most traders would invest.
Most publicly-traded game publishers are worth far more per share right now. Compare:
Nintendo $56
Microsoft $251
Sony $84
EA $129
Devolver is in the range of other high-risk, low-reward penny stocks, like Atari: $0.15
I guess this is what happens when a small-ish publisher in a crowded market dreams too big and seeks an IPO. As others said, Devolver is now vulnerable to a takeover from someone like Tencent, Embracer, or the House of Saud.
AIM? AOL Instant Messenger? I didn't realize they were on there. I'll have to add them to my Buddy List!
Strong demand for subscription services!? Who!? Not me, I'll tell ya! I want to own games, especially Devolver's!
InvestingLife
Hmm, might invest though I hope they keep doing their great work without a subscription model
Buy the dip! 😂
Seriously, the market is practically in freefall right now, so why not.
Everyone go and buy Card Shark right now!
Hopefully Fall guys going F2P helps them out, I certainly will be playing more once my friends can join.
Another day of investors who just blindly throw money at game companies yet don't understand how the industry works. Devolver has a solid looking year ahead of it with a bunch of great games on the horizon, I'm sure they'll continue to be just fine.
@Degenerate_Mii I still can’t believe a Switch TV hasn’t happened yet. I bet on both that and a handheld only Switch happening down the road as soon as the Switch was announced…still waiting on the other
That's kind of sickening. Devolver is one of the great players in this industry, I'd hate to see any harm come to them just because some investors weren't going to make enough money from holding onto their stock
Typical investor, sales are a bit slow… abandon ship!!
They’re a public company? Why?
How long has Devolver been on public stock market?
Guess I ought to buy the dip.
Enter the Gungeon 2 (not exit the gungeon) could make them a lot of money, if it's anywhere as good as the first. Also, I think they undervalue their games, I got hundreds of hours out of Enter the Gungeon, they could have sold that as a full priced game, and it would have been worth it.
Keep being unique, daring, innovative, quirky, zaney etc. with the Indie support. Devolver is pretty hit or miss, but some of their hits have been some great finds and gems for me personally. That being said maybe it’s time for some game discounts?
… Wun can only hope.
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