Frontier said it doesn’t expect to meet its previous sales and earnings guidance for the fiscal year (FY23) in the future, because of the recent failure of its first release, F1 Manager 2022, and more recently, portfolio-wide holiday sales.
Frontier is best known for its space shuttle and flight simulators, like Planet Zoo, Jurassic World Evolution and Planet Coaster.
The F1 Manager 2022, the first game in a big new annual franchise for Frontier, was released in the summer of 2022, and sold over 600,000 copies, according to the company, under its expectations.
The player engagement at the time of the games released in August 2022 was high, and during the first postgame period, this post appeared to be in line, the most often written post.
Unfortunately, sales figures during the holiday season were quite low-low initial expectations. This may partly be attributed to the increase in price sensitivity of players due to the deteriorating economic conditions.
According to the ruffling performance, Frontier has cut its revenue forecasts for the current fiscal year ending May 2023 and for the next quarter 24.
There were real-life Frontier titles made available by June 2022, as well as Elite Dangerous, Planet Coaster, Jurassic World Evolution 1, and Planet Zoo, in line with expectations in the first half of fiscal 2023, Frontier said.
Although sales figures in major market promos in December 2022 were lower than expected, it’s not shown that players listened carefully.
Despite these challenges, Frontier said that the record of 114m in the last years could go on, but changed expectations as far as 100m in revenue.
This company says that while in revenues of 118 m, you can expect in total 10 % the profits will go away.
Jonny Watts said the company’s financial expectations were very disappointing.
As a CEO, I switch focus on our core strengths and skills; with the emphasis on increasing the return on investment we receive from our top ten aides. We intend to increase the number of our development teams to increase the frequency of new releases while continuing to grow our existing portfolio. Our games have built a strong portfolio, and we keep pursuing our success. I’m thankful for the talented staff who continue to work hard.