Embracer and Deep Silver’s Saints Row reboot had cost more than $100 million to develop, resulting in a major loss for the publisher.
According to Embracer’s 3rd Quarter earnings report for the year 2022, the profitability in PC/Console during the period of October-December was impacted by the amortization of game development cost for titles released with a loss in Q1 and Q2, including the Saints Row reboot.
The report reveals that the game cost more than $100 million (total completed games value for July to Sep was SEK 1671m). According to the publisher, certain operative groups in its PC/Console Games segment have performed below its expectations this year, largely driven by a sub-par Return on Interest for its new game releases.
Rather than a structural shift, Embracer believes that it is mainly an effect of mixed reception for several releases, combined with a more normalized market and softer consumer purchasing power in 2022. As per the publisher, its core business is making a healthy risk-adjusted profit on games.
Embracer has, therefore, increased management focus and efforts to optimize investments and efficiency across the group even further. It states that each project has to earn its right to exist, which means that the publisher will increase its efforts to put quality first even further, and make sure to create unique positive player experiences.
Previously, it was reported that the under-performance of Saints Row has resulted in the game’s developer, Volition, being integrated into Gearbox Software.
Saints Row is set in the fictional city of Santo Ileso, which is based somewhat on Las Vegas, Nevada, and is situated in the American southwest. Three criminal gangs rule Santo Ileso: the Idols, an anarchist gang that targets nightclubs and nightlife; Los Panteros, a tough car and fitness-oriented gang; and Marshall Defense Industries, an international private military company with a Santo Ileso base that is renowned for its cutting-edge high-tech weaponry.
