Financial Performance
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Marathon and Destiny developer Bungie underperformed last year, causing a $765 million impairment loss for PlayStation
Sony reported a significant impairment loss of approximately $765 million in its fiscal year 2025/2026, primarily due to the underperformance of Bungie's games, Marathon and Destiny 2. This loss reflects a decrease in the recorded value of Bungie's assets. Despite this financial setback, Sony anticipates overall operating income growth in the next fiscal year, partly due to the absence of such impairment charges.
Sony reports $765 million impairment loss on Marathon and Destiny 2 studio Bungie for the last financial year, after…
Sony reported a significant impairment loss of approximately $765 million against Bungie's assets for the 2025 fiscal year. This loss is attributed to underperformance of titles like Marathon, which did not meet expectations following Bungie's $3.6 billion acquisition in 2022. Despite these financial setbacks, Sony's overall games division sales remained flat, with positive projections for the coming year.
Sony Reports $765 Million Impairment Loss Due to Underperformance of Marathon Developer Bungie
Sony reported a significant $765 million impairment loss in its last financial year, primarily attributed to the underperformance of Marathon developer Bungie. This financial setback highlights challenges in the studio's recent performance.
EA closes FY26 with "record" performance thanks to Battlefield 6 and Apex Legends
Electronic Arts reported a record fiscal year performance, driven by the successful launch of Battlefield 6 and growth in its live services portfolio, including Apex Legends and EA Sports FC titles. Despite a year-on-year decrease in net income for the full year, the company saw significant growth in net income and revenue for the fourth quarter.
EA hopes you don't remember all the Battlefield 6 devs it laid off as it reports "record" financial year…
Electronic Arts reported a record financial year with net bookings reaching $8.026 billion, largely driven by the performance of Battlefield 6. The company's financial success comes amidst reports of developer layoffs, though EA has not directly addressed this in its fiscal release.
Business and Finance
Krafton reported record-breaking quarterly revenue exceeding $927 million, driven by the PUBG franchise, with a 32% surge in operating profit. Meanwhile, OpenAI reportedly missed internal targets for active users, contributing to a market slump.
Xbox CEO Reacts To Yet Another Disappointing Period For Xbox
Microsoft's latest earnings report reveals continued downward trends for the Xbox division, with gaming revenue decreasing by 7% due to lower content and services, and softer hardware sales. Despite record monthly users and game streaming hours, Xbox revenue is forecast to decline further in the coming quarter. Xbox CEO Asha Sharma acknowledged that player growth has not yet met ambitions, while CEO Satya Nadella stated the company is working to "win back fans."
Xbox Gaming Revenue Down 7 Percent Year-on-Year, Hardware Down 33 Percent
Microsoft's gaming division, operating as Xbox, reported a 7 percent year-on-year revenue decrease, with hardware sales plummeting by 33 percent. Content and services revenue also saw a 5 percent decline, attributed partly to a strong prior year with major first-party releases. New CEO Asha Sharma discussed focusing on performance and affordability for future hardware, acknowledging potential impacts from global memory shortages on next-generation console pricing and availability.
Resident Evil Requiem looks like it performed so well that Capcom is increasing its dividends by 25%
Capcom has announced a 25% increase in its full-year dividend forecast, raising it to ¥45 per share. This revision is attributed to the strong performance of Resident Evil Requiem, which sold 7 million copies in under two months, and continued catalog sales. The company also noted positive contributions from titles like Monster Hunter Stories.
Resident Evil and Pragmata crossover teased as Capcom profits surge
Capcom has initiated a social media crossover between its new game Pragmata and the Resident Evil franchise, with Pragmata's protagonist Diana 'hacking' into Resident Evil's accounts. This collaboration coincides with Capcom raising its earnings forecast for the fiscal year ending March 2027, driven by strong sales of Resident Evil 4 and other catalogue titles.
Koei Tecmo expects record-breaking financial year more thanks to its massive tech investments than the launch of Pokemon…
Koei Tecmo is revising its financial forecast for the fiscal year ending March 31, 2026, expecting record-breaking results. The company anticipates significant increases in operating and ordinary profit, attributing this success to strategic tech investments and contributions from self-published titles like Nioh 3 and its collaboration on Pokemon Pokopia.
Pokémon Pokopia and Nioh 3 have performed so well, Koei Techmo has revised its earnings forecast
Koei Tecmo has revised its earnings forecast upwards due to the strong performance of recent titles, including "Pokémon Pokopia" and "Nioh 3." The company anticipates increased net sales, operating profits, and net profits, attributing the success to these key releases which have exceeded expectations and garnered significant acclaim.
NCsoft acquires 70% stake in mobile developer JustPlay
NCsoft has acquired a 70% stake in mobile developer JustPlay. In separate news, Sega is addressing concerns following a $200 million impairment write-down related to its acquisition of Rovio, with CEO Haruki Satomi stating the company will learn from the experience for future endeavors.
Riot Games’ Wild 2024: Record $434M Profit But $603M in Dividends to Tencent
Riot Games reported a record profit of $434 million in 2024, but paid out $603 million in dividends to shareholders, primarily Tencent, using cash reserves. This financial strength allows for continued investment in games like League of Legends and Valorant, as well as their respective esports scenes, despite broader industry challenges.
Warner Bros. Discovery is "rebuilding its video game pipeline" after a "significant" 2025
Warner Bros. Discovery is reportedly "rebuilding" its video game pipeline, according to its latest financial report to investors. While the company's Studios segment revenue was down 14% year-on-year, with a 34% drop in games revenue for Q4 2025, specific details about the video game business's future plans were not provided.
Embracer sales decline 26% to $1.3bn during first nine months of fiscal year
Embracer Group reported a 26% decline in net sales to $1.3 billion for the first nine months of its fiscal year, ending December 31, 2025. Despite the overall decrease, CEO Phil Rogers described the third quarter as a "clear improvement" due to the performance of core intellectual properties like Kingdom Come: Deliverance 2 and Dead Island. The company anticipates a significant profitability and cash generation inflection point in fiscal year 2026/27 with a pipeline of major releases.
Ubisoft Q3 net bookings rise 12% to €338m, primarily driven by Assassin's Creed franchise
Ubisoft reported a 12% year-on-year increase in Q3 net bookings to €338 million, exceeding its guidance, largely driven by the Assassin's Creed franchise and strong back-catalogue sales. The company also announced restructuring plans, including workforce reductions, and completed Tencent's investment in its Vantage Studios.
Supercell revenue declines 4% to €2.65bn in 2025
Supercell reported a 4% decline in revenue to €2.65 billion for 2025, despite a 6% increase in pre-tax profits to €932 million. The Finnish mobile developer saw its headcount grow by 30% to 890 employees and contributed €220 million to the Finnish economy. The company doubled its investment in new game development, with CEO Ilkka Paananen highlighting Clash Royale's record engagement as a key factor enabling these long-term bets.
PlayStation announces new State of Play presentation for February 12 | News-in-Brief
PlayStation announced a new State of Play presentation scheduled for February 12, promising over 60 minutes of game news and updates. Separately, Warner Bros. Discovery reported a 14% year-on-year decrease in its Studios segment revenue, stating it is "rebuilding its video game pipeline" without providing further details.
