PS5 experiences record sales during holiday period, PlayStation revenues reach $11bn - Related to revenues, holiday, debt, drop, 22%
Embracer sales drop 22% to $1.5bn, $298m debt remains
Embracer Group has , 2024, reporting declines across its PC/console and mobile segments.
However, it experienced a net profit during its third quarter following the completed spin-off of tabletop publisher Asmodee.
For the three months ending December 31, 2024.
Net sales: SEK [website] billion ($680 million), down 3% year-on-year, including:
PC/console games: SEK [website] billion ($242 million), down 23% year-on-year.
SEK [website] billion ($242 million), down 23% year-on-year Mobile games: SEK [website] billion ($149 million), up 2% year-on-year.
Net profit: SEK 960 million ($89 million, compared to net loss of SEK [website] billion / $167 million during the same period last year).
For the nine months ending December 31, 2024:
Net sales: SEK [website] billion ($[website] billion), down 22% year-on-year including:
PC/console games: SEK [website] billion ($679 million), down 35% year-on-year.
SEK [website] billion ($679 million), down 35% year-on-year Mobile games: SEK [website] billion ($409 million), down 3% year-on-year.
Net loss: SEK [website] billion ($121 million, compared to net loss of SEK [website] billion / $130 million during the same period last year).
Embracer Group attributed its profit of SEK 960 million ($89 million) during the third quarter to the spin-off of tabletop publisher Asmodee.
The process was completed on February 7, 2025, and Asmodee is now a separately listed organization trading on Nasdaq Stockholm.
Coffee Stain & Friends is the last company to become independent of the Embracer Group as it splits into three publicly listed companies. Middle-Earth Enterprises & Friends – which includes developers Warhorse Studios and Crystal Dynamics – will remain within the Embracer Group as it is currently listed.
This ongoing process resulted from a nine-month restructuring program, which saw the closure of Volition Games, Free Radical Design, and Campfire Cabal and the sale of Saber Interactive and Gearbox. More than 1,400 employees were laid off as a result.
By the end of 2024, Embracer Group recorded a net debt of SEK [website] billion ($298 million, compared to SEK [website] billion / $[website] billion at the end of 2023.
The number of game developers working at Embracer Group compared to the same period last year fell from 9,896 to 5,757. The total headcount dropped from 12,695 to 7,873 employees.
Back to the financial study, Embracer Group saw a decline in its PC/console segment due to "limited new releases" and divestment of Saber and Gearbox being included in comparison figures.
Revenue from back catalogue titles, including platform deals, dropped 14% to SEK [website] billion ($[website] million), which was also impacted by the sales of Saber and Gearbox.
However, Embracer Group highlighted the success of Warhorse Studios' Kingdom Come: Deliverance 2, which launched on February 4.
The action-role-playing game reached 1 million players in 24 hours and had over 250,000 concurrent players on Steam.
"It is our strong belief that the game will continue to generate substantial revenues over the coming years, highlighting the exceptional quality, immersion and appeal of Kingdom Come: Deliverance 2," expressed CEO Lars Wingefors.
"Warhorse Studios has a robust roadmap, including updates and new content over the next 12 months, ensuring an engaging and continuously evolving experience for the community."
As a result, Embracer Group has an optimistic outlook for its Q4 results, which it attributes to not only Kingdom Come: Deliverance 2, but also the release of Tripwire Interacitve's Killing Floor 3 on March 25.
However, it noted that revenue "is expected to be slightly negatively impacted" by the release of Heart Machine's Hyper Light Breaker, which was released in early access on January 14.
Elsewhere in the analysis, Embracer Group reported a slight growth in mobile, which was attributed to a strong holiday period for DECA Games and CrazyLabs.
The latter saw two new releases that drove "higher sales and user acquisition cost". The firm unveiled mobile is expected to go "into growth mode" during H1 FY2025-26, driven by CrazyLabs taking over the publishing rights of Bus Frenzy – Traffic Jam.
"Embracer today has an increased focus on IP development within PC/console and mobile," stated Wingefors. "However, we recognise that there is still work to be done to further enhance our operational resilience and optimise our business for the future."
He added: "Looking into the upcoming three financial years, we currently have 10 AAA games under development, of which eight are from internal studios and two from external studios. This number does not include the releases in the current quarter, or any projects financed by third parties.
"However, we want to be clear that there is room to provide more time for development if deemed necessary to optimise both the quality and overall ROI, as we did with both Dead Island 2 and Kingdom Come: Deliverance 2."
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Sega revenues drop 8% to $2.1bn
Sega Sammy has , 2024, during which it presented the cancellation of Football Manager 2025.
The Sports Interactive title was delayed last October, with Sega reaching the decision due to difficulties in "ensuring significant product quality expected by the March release."
Overall, Sega experienced a decline in net sales and profit. However, it saw a 88% increase in profit for its Entertainment Contents division which it partly attributed to the success of Sonic the Hedgehog 3.
For the nine months ended December 31, 2024.
Net sales: ¥[website] billion ($[website] billion, down [website] year-on-year).
¥[website] billion ($[website] billion, down [website] year-on-year) Operating income: ¥[website] billion ($[website] million, down [website] year-on-year).
¥[website] billion ($[website] million, down [website] year-on-year) Ordinary income: ¥[website] billion ($[website] million, down [website] year-on-year).
Sammy Sega attributed part of its decline in net sales and operating income to the sale of overseas developer Amplitude Studios in November 2024. The firm recorded a loss of approximately ¥[website] billion ($40 million) following a management buyout.
However, Sega saw strong performance in its Entertainment Contents segment, which includes games, with net sales up [website] to ¥[website] billion ($[website] billion) and profits rising 88% to ¥[website] billion ($[website] million).
There were two major launches during this period: Metaphor: ReFantazio on October 11, 2024, and Sonic X Shadow Generations on October 22.
Metaphor: ReFantazio is currently "exceeding expectations," while Sonic X Shadow Generations has "steadily increased its sales" and has surpassed two million units in global cumulative sales.
During Q3, Sega presented the cancellation of Football Manager 2025, which was scheduled to launch in March. It recorded a "loss associated with a write-down of inventory assets" as a result.
The decision to cancel the title was made "because, despite aiming the development for significant advancements in the standard series" it "was determined that it would be difficult to ensure significant product quality expected by the March release."
Development assets from Football Manager 2025 will instead be used in its sequel.
The Sports Interactive title was delayed last October to give the team "more time to deliver the best possible experience for this first instalment in a new era of Football Manager."
Elsewhere, Sega saw particular success in its animation division following the release of Sonic the Hedgehog 3 on December 20, 2024.
The movie has since grossed $460 million worldwide, making it the second-highest-grossing video game film of all time.
Sega described the Sonic media franchise as a key part of its transmedia strategy. We discussed the future of this endeavour with its head of global transmedia Justin Scarpone last year.
As a result of these factors, Sega has revised its forecast for its Entertainment Contents segment. Net sales for the FY were expected to be ¥335 billion ($[website] billion), and are now ¥320 billion ($[website] billion).
In the consumer division of Entertainment Contents, net sales reached ¥[website] billion ($[website] billion) and operating income reached ¥[website] billion ($227 million).
Sales of new games in the nine months ended December 2024 reached [website] million units, compared to [website] million during the same period last year. Catalogue titles sold 20 million (up from [website] million), while full game sales totaled [website] million units (up from [website] million).
Looking ahead, Sega has revised its outlook for FY25. It previously expected net sales of ¥445 billion ($[website] billion) compared to the previously anticipated ¥425 billion ($[website] billion). As for operating income, it was forecast to be ¥45 billion ($[website] million) and is now forecast to be ¥46 billion ($[website] million).
Ubisoft has released its financial results for the nine months ending December 31, 2024, reporting significant declines in revenues and net bookings.
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PS5 experiences record sales during holiday period, PlayStation revenues reach $11bn
Sony has , 2024, which saw growth across the board but especially during the holiday period.
The platform holder saw major increases in revenue in its Games & Network Services segment, with the PS5 experiencing its best quarter so far. The firm has increased its sales forecasts for PlayStation as a result.
For the nine months ended December 31, 2024.
Sales: ¥[website] trillion ($[website] billion, up [website] year-on-year).
¥[website] trillion ($[website] billion, up [website] year-on-year) Operating income: ¥[website] trillion ($[website] billion, up [website].
Sales: ¥[website] trillion ($[website] billion, up [website].
¥[website] trillion ($[website] billion, up [website] Operating income: ¥[website] billion ($[website] billion, up [website].
Sony shipped [website] million PS5 units over the holiday period (Q3) compared to last year. This total includes sales of the PlayStation Pro, which launched in November 2024.
The holiday season proved to be the best quarter for the PS5 so far, with the firm noting that it was "essentially the same level as the cumulative sales for the PS4 for the same period since launch."
Across the nine months ended December 2024, the PS5 shipped [website] million units. When you consider the Q1 calendar sales, [website] million units were moved in 2024.
By the end of the third quarter, the number of monthly active individuals grew to 129 million – up from 123 million compared to December 2023 – marking the highest number of MAUs in PS history. The total play time also increased by 2% YoY during Q3, resulting in a seventh consecutive year of YoY growth.
Over 40% of consumers who bought a PS5 during the holiday period were new to the console, which "contributed substantially" to MAU growth.
Full game sales were [website] million during the third quarter, with [website] million being first-party titles. While full game sales increased from [website] million sold in the same period last year, first-party sales dropped from [website] million.
During its earnings call, Sony highlighted the success of Astro Bot and Helldivers 2 – two first-party titles released in September and August 2024 respectively.
Astro Bot sold [website] million units after 58 days on the market, while Helldivers 2 sold 12 million units (combined PS and PC sales) after 87 days on the market.
Noting the success both games achieved at numerous awards ceremonies, Sony introduced: "The fact that titles in genres we are aiming to expand in the future, including titles for families and live service games, have received [accolades] is a major stride toward our building a broader title portfolio."
The firm presented it expects "a further expansion of earnings" for FY2025 following the release of Ghost of Yōtei and Death Stranding 2: On the Beach.
Overall, Sony saw sales increase by 16% during the holiday quarter for its Game & Network Services segment, reaching ¥[website] trillion ($11 billion).
Digital game and add-on content sales increased [website] YoY to ¥[website] billion ($[website] billion), while hardware sales grew nearly 10% to ¥[website] billion ($[website] billion).
Network services revenues rose by 29% YoY to ¥[website] billion ($[website] billion), with PlayStation Plus sales increasing 20% "mainly due to a shift to higher tiers of service and the impact of price revisions."
Sony has increased its forecasts for the current fiscal year, and is expecting G&NS sales to reach ¥[website] trillion ($[website] billion) – up 3% from the previous guidance of ¥[website] trillion ($[website] billion) and a [website] improvement from ¥[website] trillion ($[website] billion) achieved in the last fiscal year.
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Market Impact Analysis
Market Growth Trend
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|
| 6.0% | 7.2% | 7.5% | 8.4% | 8.8% | 9.1% | 9.2% |
Quarterly Growth Rate
| Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|---|---|---|---|
| 8.5% | 8.8% | 9.0% | 9.2% |
Market Segments and Growth Drivers
| Segment | Market Share | Growth Rate |
|---|---|---|
| Console Gaming | 28% | 6.8% |
| Mobile Gaming | 37% | 11.2% |
| PC Gaming | 21% | 8.4% |
| Cloud Gaming | 9% | 25.3% |
| VR Gaming | 5% | 32.7% |
Technology Maturity Curve
Different technologies within the ecosystem are at varying stages of maturity:
Competitive Landscape Analysis
| Company | Market Share |
|---|---|
| Sony PlayStation | 21.3% |
| Microsoft Xbox | 18.7% |
| Nintendo | 15.2% |
| Tencent Games | 12.8% |
| Epic Games | 9.5% |
Future Outlook and Predictions
The Sales Drop Revenues landscape is evolving rapidly, driven by technological advancements, changing threat vectors, and shifting business requirements. Based on current trends and expert analyses, we can anticipate several significant developments across different time horizons:
Year-by-Year Technology Evolution
Based on current trajectory and expert analyses, we can project the following development timeline:
Technology Maturity Curve
Different technologies within the ecosystem are at varying stages of maturity, influencing adoption timelines and investment priorities:
Innovation Trigger
- Generative AI for specialized domains
- Blockchain for supply chain verification
Peak of Inflated Expectations
- Digital twins for business processes
- Quantum-resistant cryptography
Trough of Disillusionment
- Consumer AR/VR applications
- General-purpose blockchain
Slope of Enlightenment
- AI-driven analytics
- Edge computing
Plateau of Productivity
- Cloud infrastructure
- Mobile applications
Technology Evolution Timeline
- Technology adoption accelerating across industries
- digital transformation initiatives becoming mainstream
- Significant transformation of business processes through advanced technologies
- new digital business models emerging
- Fundamental shifts in how technology integrates with business and society
- emergence of new technology paradigms
Expert Perspectives
Leading experts in the gaming tech sector provide diverse perspectives on how the landscape will evolve over the coming years:
"Technology transformation will continue to accelerate, creating both challenges and opportunities."
— Industry Expert
"Organizations must balance innovation with practical implementation to achieve meaningful results."
— Technology Analyst
"The most successful adopters will focus on business outcomes rather than technology for its own sake."
— Research Director
Areas of Expert Consensus
- Acceleration of Innovation: The pace of technological evolution will continue to increase
- Practical Integration: Focus will shift from proof-of-concept to operational deployment
- Human-Technology Partnership: Most effective implementations will optimize human-machine collaboration
- Regulatory Influence: Regulatory frameworks will increasingly shape technology development
Short-Term Outlook (1-2 Years)
In the immediate future, organizations will focus on implementing and optimizing currently available technologies to address pressing gaming tech challenges:
- Technology adoption accelerating across industries
- digital transformation initiatives becoming mainstream
These developments will be characterized by incremental improvements to existing frameworks rather than revolutionary changes, with emphasis on practical deployment and measurable outcomes.
Mid-Term Outlook (3-5 Years)
As technologies mature and organizations adapt, more substantial transformations will emerge in how security is approached and implemented:
- Significant transformation of business processes through advanced technologies
- new digital business models emerging
This period will see significant changes in security architecture and operational models, with increasing automation and integration between previously siloed security functions. Organizations will shift from reactive to proactive security postures.
Long-Term Outlook (5+ Years)
Looking further ahead, more fundamental shifts will reshape how cybersecurity is conceptualized and implemented across digital ecosystems:
- Fundamental shifts in how technology integrates with business and society
- emergence of new technology paradigms
These long-term developments will likely require significant technical breakthroughs, new regulatory frameworks, and evolution in how organizations approach security as a fundamental business function rather than a technical discipline.
Key Risk Factors and Uncertainties
Several critical factors could significantly impact the trajectory of gaming tech evolution:
Organizations should monitor these factors closely and develop contingency strategies to mitigate potential negative impacts on technology implementation timelines.
Alternative Future Scenarios
The evolution of technology can follow different paths depending on various factors including regulatory developments, investment trends, technological breakthroughs, and market adoption. We analyze three potential scenarios:
Optimistic Scenario
Rapid adoption of advanced technologies with significant business impact
Key Drivers: Supportive regulatory environment, significant research breakthroughs, strong market incentives, and rapid user adoption.
Probability: 25-30%
Base Case Scenario
Measured implementation with incremental improvements
Key Drivers: Balanced regulatory approach, steady technological progress, and selective implementation based on clear ROI.
Probability: 50-60%
Conservative Scenario
Technical and organizational barriers limiting effective adoption
Key Drivers: Restrictive regulations, technical limitations, implementation challenges, and risk-averse organizational cultures.
Probability: 15-20%
Scenario Comparison Matrix
| Factor | Optimistic | Base Case | Conservative |
|---|---|---|---|
| Implementation Timeline | Accelerated | Steady | Delayed |
| Market Adoption | Widespread | Selective | Limited |
| Technology Evolution | Rapid | Progressive | Incremental |
| Regulatory Environment | Supportive | Balanced | Restrictive |
| Business Impact | Transformative | Significant | Modest |
Transformational Impact
Technology becoming increasingly embedded in all aspects of business operations. This evolution will necessitate significant changes in organizational structures, talent development, and strategic planning processes.
The convergence of multiple technological trends—including artificial intelligence, quantum computing, and ubiquitous connectivity—will create both unprecedented security challenges and innovative defensive capabilities.
Implementation Challenges
Technical complexity and organizational readiness remain key challenges. Organizations will need to develop comprehensive change management strategies to successfully navigate these transitions.
Regulatory uncertainty, particularly around emerging technologies like AI in security applications, will require flexible security architectures that can adapt to evolving compliance requirements.
Key Innovations to Watch
Artificial intelligence, distributed systems, and automation technologies leading innovation. Organizations should monitor these developments closely to maintain competitive advantages and effective security postures.
Strategic investments in research partnerships, technology pilots, and talent development will position forward-thinking organizations to leverage these innovations early in their development cycle.
Technical Glossary
Key technical terms and definitions to help understand the technologies discussed in this article.
Understanding the following technical concepts is essential for grasping the full implications of the security threats and defensive measures discussed in this article. These definitions provide context for both technical and non-technical readers.
platform intermediate
AR intermediate
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