GameInvest

Private Investor with a focus on the gaming industry. No trade advice. Current positions: $EMBRAC $PDX $ALFOC $TKE $SGAMY $SQNXF $GMWKF $DEVO

[GameInvest @GameInvest2]

@ValueRegis Bad release date. Why create own competition with Gothic Remake? $EMBRAC

[GameInvest @GameInvest2]

@10_ch_10 I agree about the centralised publishing unit. Publishing under multiple labels is a massive waste of resources. However, Milestone has been VERY cost-effective so far. Hot wheels 2 had a very bad release but somehow managed to reach a ROI of 1 within the release quarter
$EMBRAC

[GameInvest @GameInvest2]

@Retailinvesto19 @Maggot1993 @10_ch_10 Alkimia Interactive has around 60 employees and they started the development with 8. 2bn kr is even unrealistic with 100 employees. Where did you get these numbers?

[GameInvest @GameInvest2]

$EMBRAC

KCD II reached position 4 in the global topsellers list. If there is a third sale within Q4 it could repeat the strong Q3 performance thanks to the Game Pass deal. I hope that Reanimal sells 1m copies in Q4. Still propably not enough to recoup it's development cost.

[GameInvest @GameInvest2]

$EMBRAC
KCD II is currently ranked 6th on Steam's global top sellers list, just one week after its release on Game Pass. The game's sales figures appear to be unaffected by the platform deal. Very strong performance.

[GameInvest @GameInvest2]

@RinoTheBouncer $EMBRAC It is very obvious that the unannounced major game is the next Metro game. KOTR remake is/was developed by Saber which is no longer an Embracer studio. They divested Saber. IGN claims that Saber still works on the game:

https://t.co/Ug7H2rYlzj

[GameInvest @GameInvest2]

@10_ch_10 CCU and number of reviews are in line with their previous releases on Steam/PSN. So I wonder if they have extremely low development costs or if they've been a garbage studio for over 10 years

[GameInvest @GameInvest2]

@Maggot1993 (2/2) TQ2, EotE and ME released in mid-Aug/ Sep, so their amortization rate is probably higher in Q3 than in Q2. The ROI of TQ2 is rly depressing. It sold around 500k copies in Q2 and received 2.4m € in government subsidies but the ROI is just 0.4. The budget must be 25m €+

[GameInvest @GameInvest2]

@Maggot1993 (1/2) Good analysis, but I think you're underestimating the amortization. Q2 had the highest value of completed games since Q2 2022 and the worst ROI of all time (all below 0.5). Except for the PS Plus deal, they didn't sell well in Q3. $EMBRAC

[GameInvest @GameInvest2]

With the share price in steady decline, I would like to share a few random thoughts about Embracer. These relate to various things that have bothered me as a shareholder for a long time and have finally been addressed (perhaps due to new management?)

$EMBRAC $ASMDEE $COFFEE

[GameInvest @GameInvest2]

$EMBRAC

KCD II is currently No. 3 on the global topseller list. Better than the GoY Clair Obscur

[GameInvest @GameInvest2]

@10_ch_10 With Embracers recent flop rate of 50%+ it's more important that the downside is limited. 😅 Especially on a project which could reach a budget of 300m or more

[GameInvest @GameInvest2]

@10_ch_10 I disagree about Black Forest. They are developing a TMNT game with great potential. The remakes of DAH were decent. It was poor marketing/market analysis that led to the flop of the second part. That is THQ's fault. Appeal Studios should be closed, though. Outcast is a dead IP

[GameInvest @GameInvest2]

@10_ch_10 $EMBRAC And it was so obvious that the game would flop. I wrote about the game 2.5 years ago. Cancelling it would have been cheaper.

https://t.co/zDTJZVPsVX

[GameInvest @GameInvest2]

$EMBRAC (1/2) They renamed "Stuntfest - World Tour" and made it F2P. I don't think there is a market for this type of games, so it's no suprise that it flopped. THQ Nordic and Prime Matter have been releasing a lot of garbage lately and "Wreckreation" looks like the next flop.

[GameInvest @GameInvest2]

@10_ch_10 Yeah, it's kind of worrying that this project, which looks like a cluncy version of Forsaken, wasn't canceled during the restructuring

[GameInvest @GameInvest2]

@mtnz_david KF3 is still a failure, just not as devastating as most expected. It will probably never break even

THQ has to announce release dates for Gothic Remake, TQ 2 and Reanimal on 1th August or the financial year will be garbage. No promising title with a release date atm.
$EMBRAC

[GameInvest @GameInvest2]

@av4tos @mtnz_david Unannounced game should be Darksiders 4 right?

[GameInvest @GameInvest2]

Wow -17,30% on information that was pretty much known since the Q3 report (poor guidance for Q1 and a AAA delay) $EMBRAC

[GameInvest @GameInvest2]

@Lakrixx Very bad marketing though. They just changed the release date even though the EA date was announced 6 weeks ago. Bad follower and wishlist numbers aswell.

[GameInvest @GameInvest2]

@10_ch_10 What are your sales expectations for KCD2 in Q4?