Worms developer Team17 issues profit warning after recent layoffs
UK-based publisher and developer Team17, best known for its Worms franchise, has issued a profit warning for the current fiscal year due to overspending and the poor commercial performance of some of its titles.
The profit warning was issued over the weekend (via IGN), as the company still expects revenue to be "modestly" ahead of market expectations, but profits will be lower overall.
According to the company, this is due to some of its games "not meeting internal expectations" commercially, which has resulted in a "less favorable mix" of the studio's own IPs and third-party published releases, which have significantly higher royalty costs.
The publisher now states that it is currently reviewing a number of projects, both unreleased and on the market, "to assess the revenue potential in the current market environment, which is expected to result in impairments recognised in FY23," totaling £11.5 million. It also anticipates a significant improvement in financial performance in the coming fiscal year as it prepares for a number of new releases.
Team17 announced last month that it would be laying off a large number of employees from its QA, development, usability, and marketing teams, as well as CEO Michael Pattison. This came after another wave of layoffs in March and allegations of overworking and underpaying staff, ignoring employee complaints about the canceled NFT project, and general mismanagement.
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