Letter to Shareholders: 2024

The letter explains that 2024 was a challenging year for the video‑game industry and for PCF Group S.A., prompting decisive actions to protect financial stability. In April, the company discontinued the Dagger project after a partner withdrawal and recorded a 100 % write‑off of its costs, followed by the cancellation of Red in September. These decisions reduced consolidated earnings for the first half of 2024 and lowered fixed‑asset values by PLN 7.7 million. The board also halted work on Victoria and Bifrost in December, laying off over 120 employees; a PLN 154.964 million impairment was booked for Bifrost, while Victoria’s costs were retained due to an upcoming early‑access release.

To counter market headwinds, the board launched a strategic options review in August aimed at securing external investment or restructuring. The effort failed, leaving the group to reassess short‑ and long‑term plans. Concurrently, the company tightened its self‑publishing pipeline, focusing on work‑for‑hire (WFH) contracts. In early 2024, a short‑term agreement with Square Enix for Gemini led to a workforce reduction of 30 staff, yet the project’s revenue only covered direct costs. New WFH deals were secured with Krafton (Echo), Sony Interactive Entertainment (Delta), and Microsoft (Project Maverick), bolstering revenue streams.

The VR segment was largely exited, with Incuvo’s Bison slated as the final title. Game On, another subsidiary, saw limited improvement in 2024‑25. Overall, the letter acknowledges losses and staff cuts but stresses a commitment to rebuilding through strategic partnerships, focused development on AAA action titles, and continued investment in high‑quality games for a global audience.