Dredge publisher says profits will likely be down this year due to certain games 'not meeting internal expectations'

Dredge Stellar Basin - Old Fortress
(Image credit: Team17)

Team17, publisher of the excellent horror fishing sim Dredge, has warned its profits are likely to be down this financial year, as some of its games struggle to meet expectations and certain projects go over budget.

In a trading update published on Friday (via IGN), Team17 said it "remains well positioned with strong traction across its new release and back catalogue titles" and expects its annual revenue to be "modestly ahead of current market expectations".

However, it admitted that "certain titles" are "not meeting internal expectations", while it has also been "too slow to address some project overspends". The publisher is also unsatisfied with the balance between its first and third-party games, the latter of which it says are less profitable as they require it to pay higher royalties.

Consequently, Team17 says that it's "reviewing a number of titles, both under development and already launched, to assess their revenue in the current market environment". Alongside Dredge, Team 17's releases this year include the brutal 2D soulslike Blasphemous 2 and the underwhelming survival city-builder Gord.

It's been a pretty bleak weekend for the UK games industry. Earlier today, Frontier Developments announced its RTS Warhammer Age of Sigmar: Realms of Ruin had underperformed, and as a consequence the company expected to suffer a £9 million loss, having already laid off employees last month. 

Team17 commenced its own round of layoffs in October that could impact as much as one-third of the company. Last year, reports emerged that Team17 staff were "fed up"  with low salaries and long hours, following a controversy over the planned creation of Worms NFTs.

Contributor

Rick has been fascinated by PC gaming since he was seven years old, when he used to sneak into his dad's home office for covert sessions of Doom. He grew up on a diet of similarly unsuitable games, with favourites including Quake, Thief, Half-Life and Deus Ex. Between 2013 and 2022, Rick was games editor of Custom PC magazine and associated website bit-tech.net. But he's always kept one foot in freelance games journalism, writing for publications like Edge, Eurogamer, the Guardian and, naturally, PC Gamer. While he'll play anything that can be controlled with a keyboard and mouse, he has a particular passion for first-person shooters and immersive sims.