Poor Shenmue 3 sales slash Deep Silver’s revenue by $8 million

Shenmue 3 has been out for a while now, and it looks like it didn’t sell too well. Poor Shenmue 3 sales have caused Deep Silver’s revenue estimates to be adjusted downward by almost $8 million.

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ResetEra highlights a recently-released financial report which details updated revenue figures for the Embracer Group (formerly THQ Nordic). Among these detailed figures is a passage which states that Shenmue 3’s performance on the market wasn’t anywhere near what they expected.

Here’s the relevant passage:

Estimate revisions due to FF VII, Shenmue III & Biomutant

We lower our revenue estimate for Deep Silver from SEK 625m [$64.62 million] to SEK 550m [$56.86 million] in Q3’19/20e, mainly due to Shenmue III performing below our expectations. Furthermore, as no official release date has been announced for Biomutant, we have pencilled in a release in the next financial year instead of Q4’19/20e. Lastly, due to a delay of Square Enixs’ Final Fantasy VII remake, we now pencil in a release in Q1’20/21e instead of Q4’19/20e. See page 3 for more details.

As the report shows, the low Shenmue 3 sales were not the only contributing factor; the lack of a release date for Biomutant and the delay in the Final Fantasy 7 Remake also impacted these financial figures. However, it seems that Shenmue 3 likely caused a big hit to this year’s profits.