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Frontier's Shares Drop Over 20% Due to Weak Sales of Realms of Ruin

As a response to the figures, Frontier has decided to redirect its portfolio towards creative management simulation games.

Image credit: Frontier Developments, Warhammer Age of Sigmar: Realms of Ruin

Yesterday, Frontier Developments shares experienced a significant drop of over 20% following the announcement of poor sales for Warhammer Age of Sigmar: Realms of Ruin. As a result, the company has revised its revenue expectations for the financial year from £108 million to a range of £80-96 million. If the higher end of the forecast is achieved, the company is projected to incur a loss of £9 million.

In response to these challenges, Frontier Developments has decided to shift its focus towards creating simulations. The company has a successful track record in this genre, with four major titles released over the past seven years: Planet Coaster, Planet Zoo, Jurassic World Evolution, and the upcoming Jurassic World Evolution 2. Each of these games achieved profitability within a month of launch and generated revenues exceeding $100 million. Looking ahead, Frontier Developments plans to release one simulator game per year over the next three financial years.

"Frontier's move to diversify its game portfolio during the last five years, including through third-party publishing and new games in 'adjacent genres', has not delivered the anticipated success. As a result, the company has refocussed on CMS games which have delivered stronger and more predictable returns through Frontier's expertise and leadership in that genre," stated the company.

As for now, the shares of Frontier Developments appear to be continuing their downward trend.

In October 2023, we reported that Frontier Developments shared an update with investors stating that their goal was to reduce annual operating costs by 20%. The strategy involved an undisclosed number of layoffs, a hiring freeze, and reducing some expenses.

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