Shares in Frontier Developments fell by over 20% on Monday after the company delivered a disappointing trading update.
The Cambridge, UK-based studio said sales of its new real-time strategy game Warhammer Age of Sigmar: Realms of Ruin were lower than expected since its November 17 release for PC, PS5 and Xbox Series X/S.
Following the game’s weak launch, Frontier has downwardly revised its revenue guidance for its current financial year (FY24) ending on May 31, 2024, from around £108 million to in the range of £80-95 million.
It said the outcome would be dependent on sales performance across its game portfolio, including contributions from new platform releases for existing titles.
Founded in 1994 by Elite co-creator David Braben, Frontier is best known for the space flight series and its management sims like Planet Zoo, Jurassic World Evolution and Planet Coaster.
It said the latter three titles, as well as Jurassic World Evolution 2, “continue to perform well”, and confirmed plans to release a new management sim in each of its next three financial years – FY25, FY26 and FY27.
Frontier plans to continue developing and supporting Elite Dangerous, its F1 Manager franchise, and Realms of Ruin. The latter will receive new content, including paid DLC, and the company said it expects sales “to build over time”.
Last month, Frontier announced it was conducting an “organisational review” that would result in a recruitment freeze, spending cuts and redundancies, subject to consultation.
The company said today that it expects to at least break even in FY25.
“I am confident that our renewed focus on CMS will return Frontier back to profitability, deliver stimulating games to our players, and provide rewarding opportunities for our people,” said Frontier CEO Jonny Watts.
“I’d like to thank our people and our shareholders for their patience and support as we go through a challenging period of change.”