Devolver Digital Inc (AIM:DEVO) shares halved after it issued a profit warning after three poor game launches and higher costs.
The US video game published warned of “slower than expected” sales from newly-released video games, Shadow Warrior 3 (SW3), Weird West and Trek to Yomi.
It attributed the poor revenues to a competitive game release window and "specific factors for each title which are being actively addressed for future titles."
"At the same time there has been an expected step-up in amortisation costs related to these heavier-investment games upon release, as well as increases in general operating expenses due to inflation, headcount and marketing," it added.
The company now expects its revenue for 2022 to be between US$130mln and US$140mln, which would represent a 40% improvement on last year.
Meanwhile, guidance for adjusted EBITDA was cut to US$27-32mln, which would still be an increase of much as 25% in the year.