Devolver Digital's Resilience in Challenging Times

The video game industry has experienced significant highs since 2020, but the current year has been particularly brutal, with many companies downsizing, laying off staff, and closing down. Despite a healthy market with rising game sales, it has been a tough year for the industry. Even established indie companies like Devolver Digital have faced challenges, with its stock price plummeting throughout the year and several releases delayed until next year. Devolver went public in November 2021 and has faced a difficult couple of years since. According to COO Graeme Struthers, the company benefited from the success of Team17 but failed to realize it was entering a peak period. The launch of three major projects in March, April, and May did not meet expectations, partly due to the impact of Elden Ring. However, 2022 turned out to be a 'banner year' for Devolver, with the commercial and critical successes of Inscryption and Cult of the Lamb. The company is focusing on its strengths, publishing video games, and believes that everything will gradually improve. Struthers notes that the appetite for games like Inscryption and Cult of the Lamb is stronger than ever, and Devolver has more indie titles in the pipeline, including delayed releases such as The Plucky Squire. The decision to delay some titles was made to ensure they meet their potential, which will result in long-term sales. Devolver's release slate for the year has not been empty, with titles like Terra Nil, Wizard with a Gun, and Gunbrella, and 2024 is looking more stacked than ever. The company has also been affected by the consolidation trend in the industry, with some developers being acquired by other companies. Devolver itself was approached by three companies with acquisition in mind, which contributed to the decision to go public. This move allows the company to transform its model and respond to the changing market. Despite initial reservations, going public seemed the best way forward for Devolver Digital, providing the necessary funds and ability to bring studios into the company.