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 amortization 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 its 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 catalog 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.