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Devolver financials show stable 2023, despite 'quiet' first-half

2023 nearly had Devolver in the first half, but the publisher managed to recover with its newer releases and some old favorites.

Justin Carter, Contributing Editor

April 18, 2024

2 Min Read
Splash art for 2024's Children of the Sun.
Image via René Rother/Devolver Digital.

At a Glance

  • Cult of the Lamb and Inscryption did a lot of heavy lifting for Devolver in 2023, which it expects to continue in 2024.

Devolver Digital released its financials for the 2023-2024 fiscal year, and for the most part, things went well for the indie publisher.

After a slower first half of the year, the second half made a "strong" recovery. While its $92 million revenue was down 31 percent from the previous year, it remained in line with the company's general expectations.

The positive outlook was attributed to restructuring earlier that year (and in 2022's back half), such as changes made at subsidiary Good Shepard. Credit also went to late 2023 releases like Wizard with a Gun and Talos Principle 2, which did "well."

Even with 11 game launches last year, Devolver's back catalog accounted for 83 percent of total revenue (up 25 percent), which it called "unusually high." Cult of the Lamb was the big driver, having exceeded expectations and still "maintaining good momentum."

Similar praise was given to Inscryption. However, the developer noted subscription deals on consoles may have eaten into sales of some older games, which made up 16 percent of revenue compared to 2022's 23 percent.

Those deals were more fruitful for the Weird West publisher in 2021 and 2022. For 2023, Devolver turned several deals it claimed "undervalued the proposed games' value."

That said, the studio reaffirmed subscriptions are part of its long-term plans, even as it predicts lower revenue from that area over the next several years.

Devolver is looking to its oldies and 2024 games to get through the year

All-in-all, Devolver managed to make 2023 a successful "rebirth year." Looking ahead, Miller said the company will double down on its strengths and "deliver a strong pipeline of fun and creative new titles."

Last October, Devolver snatched up Astroneer studio System Era. That acquisition is "performing well," Miller added, and will allow it to develop "expandable games" with the studio in the future.

Along with this year's titles like Children of the Sun and Pepper Grinder, he put further faith in Devolver's older games. He thinks Cult and Inscryption should help offset lower revenue from subscription deals, and spur back catalog titles to grow in sales.

Even with one of its games already pushed out of the 2024-2025 period, Devolver is hoping to "return to profitable growth" throughout the fiscal year.

About the Author(s)

Justin Carter

Contributing Editor, GameDeveloper.com

A Kansas City, MO native, Justin Carter has written for numerous sites including IGN, Polygon, and SyFy Wire. In addition to Game Developer, his writing can be found at io9 over on Gizmodo. Don't ask him about how much gum he's had, because the answer will be more than he's willing to admit.

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