Frontier Developments slumps as sales of new Jurassic Park video game fail to meet expectations
Frontier Developments tumbled after it warned sales of an anticipated video game have disappointed.
The AIM-listed company, which has become a stock market darling, said PC sales of Jurassic World Evolution 2 have been lower than expected since its release earlier this month.
Frontier has cut its revenue guidance for the second time this year.
Flop: Frontier Developments, which has become a stock market darling, said PC sales of Jurassic World Evolution 2 have been lower than expected since its release earlier this month
The games developer estimates it will make between £100million and £130million in the year to May – down from a previous forecast of £130million to £150million.
Frontier’s shares sank 31.9 per cent, or 795p, to 1700p following the update.
Jurassic World Evolution 2 – which has received positive reviews – has sold well on consoles. But the PC sales did not match up.
And in another blow, sales of another headline game, Elite Dangerous: Odyssey, have been ‘more muted’ than Frontier had hoped.
Analysts said the company was being hit by the end of Covid restrictions, after sales in the video game industry exploded when lockdowns hit in 2020.
Russ Mould, investment director at AJ Bell, said: ‘Unfortunately, gaming companies have been eager to ride the pandemic-inspired momentum by scrambling to release new titles and so the marketplace has been very crowded just at the time when gamers found they had plenty of new alternatives to keep them busy.’