Frontier says attempts to diversify portfolio have failed after Realms of Ruin falls short

UK studio Frontier Developments says Warhammer Age of Sigmar: Realms of Ruin delivered lower-than-expected sales and indicated attempts to diversify its portfolio over the last five years have been a failed experiment.

In an update to investors, the studio claimed Realms of Ruin stumbled at launch despite receiving "mostly positive reviews" but pledged to continue supporting the title with post-release content including premium DLC. "We expect sales to build over time," added the company.

The underwhelming performance of the Warhammer-themed RTS, however, means that Frontier no longer expects to deliver full-year revenue of around £108 million. "Updated guidance is for FY24 revenue in the range of £80-95 million, with the outcome dependent on sales performance across Frontier's game portfolio during the remainder of the financial year, including the revenue contributions from new platform releases for existing games," it continued.

Notably, Realms of Ruin's lacklustre debut has persuaded Frontier to stop experimenting within other genres and focus primarily on developing creative management simulation (CMS) titles like Planet Coaster and Planet Zoo.

"Frontier's move to diversify its game portfolio during the last five years, including through third-party publishing and new games in 'adjacent genres,' has not delivered the anticipated success," it continued. "As a result, the Company has refocussed on CMS games which have delivered stronger and more predictable returns through Frontier's expertise and leadership in that genre."

The UK studio noted that its four CMS titles (Planet Coaster, Planet Zoo, Jurassic World Evolution and Jurassic World Evolution 2) have all delivered over $100 million in gross revenue. Each title also became profitable within one month of release.

Frontier has subsequently confirmed plans to develop three more CMS games with a view to releasing one in each of the next three fiscal years. "Alongside this we will continue to develop and support our portfolio of existing games, including Elite Dangerous, our F1 Manager franchise, and Realms of Ruin," added the studio.

Frontier is currently making layoffs and implementing spending cuts in a bid to "refocus on is core strengths" following some disappointing financial results. Outlining those restructuring plans in October, the company said it must return to profit to create a "sustainable foundation for the future."