Yahoo Finance Weak sales leave game studio Frontier in the wars
The UK’s independent video game studios faced its second blow in a matter of days, as shares in Cambridge-based game maker Frontier Developments tumbled after it revealed another new game has flopped.
Frontier said sales of Warhammer Age of Sigmar: Realms of Ruin, a title based on the popular Warhammer board games, were below expectations, despite “mostly positive reviews” of the game. That’s the second flop in a matter of months, as Frontier also struggled to shift copies of F1 Manager 2023. The 2022 edition of F1 Manager had also been a disappointment.
Given those troubles, Frontier said it would focus less on branching out into new genres and stick to where it has had success: “creative management” games, where the player runs an attraction like a theme park or zoo.
CEO Jonny Watts said: “I am pleased to confirm a third creative management simulation (CMS) game on our development roadmap.
“I am confident that our renewed focus on CMS will return Frontier back to profitability, deliver stimulating games to our players, and provide rewarding opportunities for our people. I'd like to thank our people and our shareholders for their patience and support as we go through a challenging period of change.”
Chair David Wilton also quit the business. He will be replaced by Ilse Howling, who was a non-executive director.
Frontier founder David Braben said: “I'd like to thank David Wilton for his contribution during a turbulent and difficult year for Frontier, and particularly for his help with the complex task of restructuring through the ongoing organisational review. I'd also like to thank Ilse for stepping up to the role of chair.”
Frontier shares plunged by as much as 25% to 149.8p. That values the firm, worth £1.3 billion in 2021, at less than £60 million.
It’s the second independent game studio to see share collapse in a matter of days. On Friday, shares in Team17 - the firm behind nineties classic Worms - plunged by more than 40% after a profit warning.
