Playtika suspends development of new games due to financial problems
Fans of the famous developer Playtika will have to temporarily wait with the release of new games. The main reason is the financial problems. Thus, in the last quarter, the financials showed a drop of almost 15%. Therefore the company has decided to wait with the new games until it's economically feasible.
Instead of developing new games, the company has decided to shift its focus. Playtika will focus on investing in other companies. Right now its interests include startups with high growth and development potential. One of them is its daughter studio Wooga. It helped stabilize last year's revenue at $2.6 billion.
In addition, in November of last year Playtika invested $25 million in Ace Games, a Turkish developer of mobile games. So in the near future players will be able to personally assess the results of this cooperation.
Craig Abrahams, president of the holding company said during the presentation of the annual report, "We see that the new games have received a positive response from players and achieved high retention rates, but because of the marketing component and the growth of CPI, scaling these games is still difficult for us."
The financial results of the company can not be called directly deplorable, but they are not prosperous either. For example, as a percentage of revenue growth was 2.7%, and last year it was 54.7%. If we talk about total revenue, it fell by 8.5% to 45.3%. Net income was also down from last year's results by 10.8%.
2022 was a difficult year for the company not only financially. Thus, Playtika conducted a series of layoffs, which affected even the company's top managers. Additionally, it had to close offices in several countries and lower wages. However, even this has not stabilized the financial situation to the end.
Craig Abrahams confirmed that the studio will use the new technology to develop the business. The only nuance is that the marketing component will be shifted to obtaining new channels of traffic and increasing the ROI.
What will come out of this we will be able to see only by the end of 2023. Now players can only enjoy the proven Playtika hits and hope that new games won't have to wait long.