Microsoft, Sony, Nintendo, EA, Ubisoft… Like every month of May, the video game world details its financial results for the past fiscal year. Our comrades from gamekult and Ludostrie analyze this avalanche of figures.
In the video game industry as everywhere else, the month of May is traditionally the month when the vast majority of companies in the market reveal their financial results for the past fiscal year, which ends most of the time at the end of March. It is therefore a period with a very special flavor for Father and Lemairethe economic podcast proposed by our comrades from gamekult in association with Ludostrie. Every month, Florian “Le Père Fidalbion” Velter and Oscar Lemaire talk about the latest figures, the ultimate big money stories that have animated the video game news.
The new issue of the show is therefore an opportunity to look back on the results of the 2021/22 financial year, a year that could be considered as that of all risks, since it followed the exceptional boom experienced by the video game industry over the period 2020/21. The latter had been boosted not only by the release of next-generation consoles (PS5 and Xbox Series X / S), but much more by the Covid-19 pandemic and the numerous confinements around the world. Relief: this surge was ultimately not an anomaly, as most players recorded figures that were at least stable compared to the previous year.
This is particularly the case of the three most watched companies, namely of course the three console manufacturers. Nintendo and Sony’s video game division achieve turnovers in line with their 2021 records: a very slight increase for the second, an insignificant drop for the first – which can however boast of a rate of profitability among the highest in the industry, at 35%. Microsoft is slightly apart, since its fiscal year only ended on May 31, but over a period equivalent to that of its two rivals, its video game activity is up 10%. However, this figure must be put into perspective, as it is also attributable to the integration of the results of the newly absorbed Bethesda.
Mergers and acquisitions everywhere
On this subject, moreover, last year showed more than ever the very strong attraction of the market towards consolidations. One of the most spectacular events of recent months has been the announcement of the acquisition by this same Microsoft of the Activision Blizzard group for the dizzying sum of 69 billion dollars. This already invites us, as observers, to a little exercise in the imagination: by adding the turnover of Microsoft Gaming and Activison-Blizzard-King over this year, we would not obtain the world number 3 in video game as initially thought, but an entity that goes far enough beyond Sony’s game business, and even teasing number 1, the Chinese Tencent. Let it be said: when it is effective (and provided that it is approved by the competition regulatory authorities), this acquisition will give birth to a juggernaut.
There are also sudden growth prospects ahead of the Take-Two Interactive group (Rockstar, 2K, etc.), whose acquisition of mobile giant Zynga has just been approved. The two combined companies are located in close proximity to the other major “independent” publisher, Electronic Arts. Said independence may not last, however, recent indiscretions revealed by the site Axios stating EA’s desire to get closer to a large group. We even believe that very advanced discussions have taken place with the NBCUniversal conglomerate. Only here, EA would pose as a condition that the operation be a merger with the maintenance of the management team in place rather than an acquisition, which necessarily complicates the negotiations. For now, it is therefore always solo that the publisher must consider its future, a future that will be written without the historic partnership with Fifa.
Slight downtime for Ubisoft, iron health for Japanese publishers
On the French side, Ubisoft had to be content with a lackluster year, sanctioned by a 17% drop in turnover, which put a small halt to the company’s desire for growth. Nothing alarming, especially since the figure is easily explained. The exercise was marked by numerous delays and therefore proved to be scarce in terms of major outings. But the editor has the cards in hand to straighten the steam next year with the possible releases of Mario + Rabbids Sparks of Hopea new Assassin’s Creeda new Splinter Cellthe Arlesian Skull & Bonesand maybe even the game Avatar of massive.
As for Japanese publishers, they are not left out. Bandai Namco is levitated by the phenomenon Elden Ring ; Square Enix is driven by the sure values that are Final Fantasy XIV Online and mobile games (notably with the immense success in his native lands of dragon quest walk); Sega-Sammy can count on the continued success of sonic, both in play and in film. And we obviously do not forget the Konami case, for which Oscar Lemaire reveals exclusive information concerning the distribution of turnover. Thus, contrary to what one might think, the latter still relies in a significant proportion, albeit in a minority, on console games (compilations of retro titles, very popular baseball games in Japan, etc.). Enough to give credence to the rumors that lend the publisher the desire to relaunch, via partnerships, some of its flagship licenses, in particular silent Hill ? Great question.
For much more information and analysis, find the complete program at our comrades of gamekult (content reserved for subscribers).