profitability Archives

AppWizard

March 26, 2025

Sales revenue dips at CD Projekt for 2024, but profitability has increased

CD Projekt recorded sales revenue of zł985 million for the 2024 financial year, a 17 percent decrease from the previous year. The revenue included zł588.8 million from Cyberpunk 2077 and its Phantom Liberty expansion. The company's net profit declined by 2.5 percent to zł469.9 million, while the net profit margin improved from 39.1 percent to 47.7 percent, largely due to CD Projekt Red's profit margin of 58.5 percent. GOG reported a profit margin of 0.6 percent. CFO Piotr Nielubowicz noted that Cyberpunk 2077 and its expansion generated nearly 600 million PLN in earnings, and The Witcher 3 continues to attract players. Joint CEO Michał Nowakowski announced plans for Cyberpunk 2077: Ultimate Edition on macOS and a new animation project set for release on Netflix in 2024.

AppWizard

March 20, 2025

Telegram reached 1 billion users — and became the world’s second largest messenger after WhatsApp, or «a miserable copy» according to Durov

Telegram has reached 1 billion active users each month, making it the second most popular messaging app globally, after WhatsApp. Telegram generated revenues of 7 million in 2024, with each user opening the app 21 times daily and spending approximately 41 minutes per day on it. Pavel Durov returned to Dubai after facing legal challenges in France, where he was detained for nearly six months due to serious allegations. In Ukraine, around 73% of users rely on Telegram for news updates, reflecting a 1% increase over the past year.

AppWizard

March 17, 2025

NCSoft’s PC Games Struggle as Lineage Mobile Generates More Revenue Than Their All PC Games Combined

NCSoft's revenues have sharply declined since peaking in 2022, with 2024 revenues falling below 2017 levels. The company's stock price has decreased by 71% over the past five years. The transition from PC gaming to mobile platforms initially increased revenues, but profitability has suffered due to high platform fees from Apple and Google. NCSoft's legacy MMOs, like Lineage and Lineage 2, avoid these fees. Currently, Lineage M generates more revenue than all of NCSoft's PC games combined, and in 2022, Lineage W brought in nearly three times the revenue of the entire PC game portfolio. However, revenue from Lineage W has also declined. The player base for Throne and Liberty has decreased rapidly, raising concerns about its long-term viability. The upcoming release of Aion 2 is expected in the latter half of 2025, but expectations for success are cautious.

AppWizard

March 10, 2025

Rebellion’s Kingsley: “We’re just very professional with controlling scope and costs”

Jason Kingsley OBE, CEO of UK developer Rebellion, stated that the company's success in avoiding layoffs is due to meticulous cost management practices. Rebellion focuses on keeping project scopes manageable and prefers developing smaller, high-quality games rather than large, unfocused ones. Approximately two-thirds of their games are sequels or established brands, while one-third consists of experimental projects, ensuring a reliable revenue stream and fostering innovation. Kingsley emphasized the importance of job security and the company's commitment to maintaining stability and responsible growth without frequent hiring and firing.

AppWizard

March 1, 2025

Games revenue dipped 53% at Warner Bros during 2024

Warner Bros reported a 53% drop in revenue for its gaming division in 2024, as disclosed in its 10-K filing with the SEC. The overall content revenue declined by eight percent, primarily due to the decrease in gaming revenue, which saw a 29% year-on-year drop in the final quarter of 2024. The decline is attributed to underperforming titles in 2024, following the success of previous releases like Hogwarts Legacy and Mortal Kombat 1. The company plans to close several studios, including Monolith, Player First, and its San Diego studio, and will focus on four key franchises: Harry Potter, Game of Thrones, Mortal Kombat, and DC Comics. Warner Bros aims to restore profitability to its Games division by 2025 and enhance its contribution to the company's growth.

AppWizard

February 26, 2025

Warner Bros shuts down three studios, including Monolith

Warner Bros has announced the closure of three development studios: Monolith Productions, Player First Games, and its mobile-focused San Diego studio. As a result, 131 employees in Kirkland, Washington, will be laid off. Monolith Productions is known for titles such as Fear, Condemned, Shadow of Mordor, and Shadow of War, but its anticipated Wonder Woman game will not be developed. Player First Games is recognized for the game Multiversus. Warner Bros stated that the closures are part of a strategic shift to focus on key franchises like Harry Potter, Mortal Kombat, DC, and Game of Thrones, and emphasized that the decision does not reflect the talent of the teams involved.

AppWizard

February 26, 2025

Warner Bros. is closing Monolith, Player First Games, and WB San Diego, and has cancelled its Wonder Woman game

Warner Bros. Games has announced the closure of several studios, including Monolith Productions, Player First Games, and WB San Diego, following the resignation of David Haddad, the chief of Warner Bros. Games for 12 years. The closures include the cancellation of the Wonder Woman game, which was first unveiled in 2021. Player First Games, known for Multiversus, has left its team with a sense of loss, as expressed by game director Tony Huynh. Monolith Productions, recognized for titles like Blood and Middle-earth: Shadow of Mordor, has also shut down. Warner Bros. Games is facing financial difficulties, including a 0 million loss from Suicide Squad: Kill the Justice League and a 0 million writedown due to Multiversus' underperformance. CEO JB Perrette aims for the company to return to profitability by 2025, acknowledging it will take two to three years to rebuild. Rocksteady is reportedly developing a new single-player Batman game, which could signify a positive direction for the company.

Tech Optimizer

February 20, 2025

Magaya enhances performance with Tessell’s PostgreSQL

Magaya Corporation enhanced its database infrastructure by using Tessell's managed PostgreSQL solution, improving database performance and operational efficiency. After being acquired by a private equity firm in 2023, Magaya migrated customers from the Classic system to the Blue Ivory platform but faced initial performance issues with Blue Ivory's database. The original PostgreSQL setup was not optimized for high-volume queries, leading to bottlenecks, and reliance on a single PostgreSQL expert posed operational risks. Tessell's managed PostgreSQL platform transformed Blue Ivory, achieving a tenfold improvement in query execution speeds and enhancing logistics operations to handle tens of thousands of rows per second. The migration to AWS was seamless, with optimizations in partitioning strategies, memory buffers, and disk I/O. Tessell provided 24/7 expert support, reducing dependency on a single in-house DBA. The optimizations prepared Magaya's Blue Ivory platform for sustainable growth, enabling quicker customer onboarding and smoother migrations, and allowing support for both multi-tenant and single-tenant deployments. This transition to a cloud-native solution met ROI expectations for private equity investors, enhancing growth and profitability. The partnership with Tessell modernized Magaya's database infrastructure and strengthened its position in the logistics and supply chain technology sector.

AppWizard

February 19, 2025

Spencer: Xbox isn’t trying to move players away from owning games

Phil Spencer, head of Microsoft's gaming division, clarified that Microsoft is not trying to move players away from game ownership but aims to provide various options for gaming, including traditional ownership and subscription models like Xbox Game Pass. He reassured gamers about the future of hardware and the ability to continue playing their games, emphasizing the company's commitment to maintaining players' libraries through features like backward compatibility and Play Anywhere. Spencer stated that players can purchase any game available on Game Pass, reinforcing the flexibility in gaming experiences. He acknowledged the need for profitability while focusing on maximizing options for gamers. Additionally, he noted that embracing Windows and cloud technology has been crucial for Microsoft's growth, particularly in Asia, where cloud and PC gaming are expanding rapidly.

AppWizard

February 17, 2025

‘Not every story is told in that way’: Phil Spencer says that live service games aren’t the answer to every problem, and that smaller games play an important role

Live service games are seen as a way to maximize shareholder value in the gaming industry, with EA's CEO suggesting they could have improved Dragon Age: The Veilguard's performance. A GDC survey found that about one-third of triple-A developers are working on live service titles, though some industry leaders are concerned about their prevalence in high-budget gaming. Phil Spencer, head of Xbox, expressed reservations about all games becoming service-based, emphasizing the importance of narrative and creative integrity. Xbox has acquired Activision Blizzard, which includes franchises like Overwatch 2 and Call of Duty, but is also promoting single-player experiences. Spencer highlighted the need for diverse storytelling, recalling his appreciation for games like Limbo. Some developers, including former Dragon Age team members and Hazelight's Josef Fares, oppose the push for live service elements, advocating for complete narratives. Spencer noted Xbox's ability to invest in various gaming experiences, supporting both live service and traditional games with defined narratives.