While down on expectations, Hot Wheels Unleashed 2 did at least provide a positive return on investment, according to parent company Embracer Group.
Images: Embracer Group
Milestone’s latest entry in its flagship gaming franchise – Hot Wheels Unleashed 2 -Turbocharged – has missed the expected launch sales figures.
The diecast racing title’s relative revenue performance was discussed during parent company Embracer Group’s interim Q3 financial report, which covers October and December 2023.
“Revenues from new releases in the [PC and console] segment amounted to SEK 470 million [~€41,775m] in the quarter, an increase of two per cent year over year,” highlighted Lars Wingefors, Co-founder and CEO of Embracer Group during today’s (15th February 2024) call.
“The main revenue drivers among new releases within the quarter were Hot Wheels Unleashed 2, Risk of Rain Returns, Arizona Sunshine 2 and Last Train Home.”
“Hot Wheels 2 and Last Train Home were well received by critics and players but performed a bit below the financial expectations likely, partly, due to a crowded release window.”
Unleashed 2 hit PC, PlayStation, Xbox and Nintendo Switch on 19th October 2023. In our review, we labelled it “ a fantastically pure and genuinely challenging arcade game.”
“Hot Wheels 2 perhaps did not perform as well as the previous game in the franchise and saw a tough release window, but ultimately had a positive ROI contribution in the quarter,” concluded Wingefors.
Hot Wheels Unleashed 2 is the follow-up to Milestone’s record-selling 2021 original, which set a new benchmark for the Italian company by shifting over one million units.
Initial sales aren’t the only determining factor of success. Like its predecessor, Unleashed 2 will see not one, but two, season passes of premium downloadable content – including the recently released set of Hondas and the Made In Italy expansion, released today. DLC revenue is historically bundled into ‘back catalogue’ sales by Embracer henceforth.
In total for the quarter, PC and console game sales for the entire Embracer Group decreased by -5 % to SEK 3,379 million.
The Swedish giant also noted that the venerable Wreckfest was inside its top 10 back catalogue revenue drivers.
SnowRunner too was on that list, following confirmation that it will receive a ‘Year 4 Pass’ of paid DLC and support, even after the release of the studio’s next release – Expeditions: A MudRunner Game.
SnowRunner – helping prop up Embracer Group.
So far, this has seen a headcount reduction of 8% as of 31st December, with further reductions in January and February as many developers are made redundant.
Lars Wingefors, Embracer Group’s Co-Founder and CEO. Image: Embracer Group
Under the Embracer umbrella are racing game teams such as Rainbow Studios (MX vs ATV Legends), Saber Porto (Dakar Desert Rally), Sabert Interactive (SnowRunner, Expeditions), Milestone (Hot Wheels, MotoGP, Ride) and Bugbear Entertainment (Wreckfest).
“Our future games portfolio will be more focused around established owned IP and studios we are confident will generate better predictability and well as increase ROI and profitability going forward,” explained Wingefors.
Did you enjoy the first Hot Wheels Unleashed and pick up the sequel? Let us know in the comments below or on X, @OverTake_gg.
Images: Embracer Group
Milestone’s latest entry in its flagship gaming franchise – Hot Wheels Unleashed 2 -Turbocharged – has missed the expected launch sales figures.
The diecast racing title’s relative revenue performance was discussed during parent company Embracer Group’s interim Q3 financial report, which covers October and December 2023.
“Revenues from new releases in the [PC and console] segment amounted to SEK 470 million [~€41,775m] in the quarter, an increase of two per cent year over year,” highlighted Lars Wingefors, Co-founder and CEO of Embracer Group during today’s (15th February 2024) call.
“The main revenue drivers among new releases within the quarter were Hot Wheels Unleashed 2, Risk of Rain Returns, Arizona Sunshine 2 and Last Train Home.”
“Hot Wheels 2 and Last Train Home were well received by critics and players but performed a bit below the financial expectations likely, partly, due to a crowded release window.”
Unleashed 2 hit PC, PlayStation, Xbox and Nintendo Switch on 19th October 2023. In our review, we labelled it “ a fantastically pure and genuinely challenging arcade game.”
“Hot Wheels 2 perhaps did not perform as well as the previous game in the franchise and saw a tough release window, but ultimately had a positive ROI contribution in the quarter,” concluded Wingefors.
Hot Wheels Unleashed 2 is the follow-up to Milestone’s record-selling 2021 original, which set a new benchmark for the Italian company by shifting over one million units.
Initial sales aren’t the only determining factor of success. Like its predecessor, Unleashed 2 will see not one, but two, season passes of premium downloadable content – including the recently released set of Hondas and the Made In Italy expansion, released today. DLC revenue is historically bundled into ‘back catalogue’ sales by Embracer henceforth.
In total for the quarter, PC and console game sales for the entire Embracer Group decreased by -5 % to SEK 3,379 million.
The Swedish giant also noted that the venerable Wreckfest was inside its top 10 back catalogue revenue drivers.
SnowRunner too was on that list, following confirmation that it will receive a ‘Year 4 Pass’ of paid DLC and support, even after the release of the studio’s next release – Expeditions: A MudRunner Game.
Embracer Restructuring Nearing End
The earnings call also confirmed the end of the current restructuring programme at some point during March 2024.So far, this has seen a headcount reduction of 8% as of 31st December, with further reductions in January and February as many developers are made redundant.
Under the Embracer umbrella are racing game teams such as Rainbow Studios (MX vs ATV Legends), Saber Porto (Dakar Desert Rally), Sabert Interactive (SnowRunner, Expeditions), Milestone (Hot Wheels, MotoGP, Ride) and Bugbear Entertainment (Wreckfest).
“Our future games portfolio will be more focused around established owned IP and studios we are confident will generate better predictability and well as increase ROI and profitability going forward,” explained Wingefors.
Did you enjoy the first Hot Wheels Unleashed and pick up the sequel? Let us know in the comments below or on X, @OverTake_gg.
