Shares in Swedish holding company Embracer Group fall by more than 40% overnight

The Embracer Group holding company released its financial report today.

Here's What We Know

Despite the excellent sales figures for Dead Island 2, Metro Exodus and several other games, the situation is very unfavourable for the company.

It consists of two factors: the development of Saints Row cost too much and didn't bring the expected profit.

The second factor is more significant. Lars Wingefors, the head of Embracer Group, said that some big strategic deal worth $2bn was struck at the last moment. This, in turn, led to a projected loss of profit.

It's been a difficult year, negatively impacted by game delays, weak consumer demand and a tepid reception to some major releases. Late last night we were informed that one major strategic partnership that had been under negotiation for seven months would not materialise.

The market reacted instantly to the news received and Embracer Group's share price fell by more than 40%. The share price is likely to recover gradually, but investors are not happy with the situation.

Source: VGC