Games Industry Finance Cheat Sheet: Winter 2024 Edition

The Winter 2024 edition of the Games Industry Finance Cheat Sheet provides a comprehensive analysis of the financial performance of major global video game entities during the final three months of 2023. The report synthesizes quarterly earnings from platform holders and third-party publishers, offering a high-level overview of the industry's transition into a post-pandemic market reality characterized by strategic restructuring and shifting revenue drivers.

Key findings reveal a significant milestone for Microsoft, where gaming revenue reached $7.1 billion following the Activision Blizzard acquisition, officially surpassing Windows to become the company's third-largest business segment. Conversely, Sony faced a $10 billion market value reduction after lowering PlayStation 5 sales forecasts from 25 million to 21 million units for the fiscal year, signaling a transition into the console's later life cycle. Nintendo maintained strong momentum with $9.33 billion in revenue for the first three quarters of its fiscal year, driven by the success of Super Mario Bros. Wonder, despite looming speculation regarding its next hardware iteration.

The analysis also highlights the dominance of live services and the challenges of emerging technologies. Electronic Arts reported that live services now constitute 73% of its business, with EA Sports FC achieving record bookings despite its recent rebranding. In contrast, Ubisoft reported disappointing sales for its flagship VR title, Assassin’s Creed: Nexus, leading to a projected reduction in spatial gaming investment. Roblox demonstrated strong growth with a 25% increase in bookings and a rising user base of 71.5 million, though it continues to operate at a net loss. The report concludes that while the industry faces a "reset" marked by layoffs and project cancellations at firms like Embracer Group and Bandai Namco, high-quality software and established franchises remain the primary drivers of financial stability.