LogInThe publisher says that some games are "not meeting internal expectations", meaning that changes are to come.
Image credit: Team17, Overcooked! 2
On November 24, Team17, the well-known indie game publisher and developer, shared a trading update, which shed some light on the company's overall state. Even though the company "remains well positioned with strong traction across its new release and back catalogue titles" and predicts its annual revenue to be "modestly ahead of current market expectations", Team17 issued a profit warning for the current financial year. The company stated that while revenue is anticipated to slightly exceed current market expectations, there is a projected decrease in profit.
"While the important trading periods of Black Friday and Christmas are not yet complete, management believes the Group remains well positioned with strong traction across its new release and back catalogue titles, and currently expects FY23 revenues to be modestly ahead of current market expectations," reads the trading update. "Despite this overall robust revenue performance, certain titles within the Games Label are not meeting internal expectations, resulting in a less favourable mix between higher margin own-IP titles and third-party titles (with higher royalty payments) than anticipated."
The projected decrease in profit is expected to be due to "certain titles" having failed to meet internal expectations, and there has been a delay in addressing some project overspending. The publisher is also dissatisfied with the balance between its first-party and third-party games, noting that the latter tends to be less profitable due to higher royalty payments.
Image credit: Black Salt Games, DREDGE
Speaking of DREDGE, the game that was published by Team17, the developer behind the title recently talked to us, shared their thoughts on the game's reception, and discussed the game's map and gameplay mechanics. If you're curious, make sure to read our article.
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