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Underperformed

Digital Bros (505 Games) Expects an EBIT Loss of at Least €10 Million

Digital Bros, the Italian group behind publisher 505 Games, now expects EBIT to fall below the level achieved in the previous fiscal year. This is due to the underperformance of Blades of Fire and higher-than-expected write-offs.

Marcel Kleffmann24.07.2025 11:09
Digital Bros (505 Games) Expects an EBIT Loss of at Least €10 Million
Blades of Fire Digital Bros (505 Games)

Digital Bros Group has updated its outlook for the 2025 fiscal year. The Italian company behind 505 Games begins with the following statement: "The video game market remains affected by challenging competitive dynamics, driven by an oversupply of new releases and increasingly selective consumers. These conditions make it particularly difficult to successfully launch new titles and to develop reliable forecasting models capable of accurately projecting sales and volumes at launch." In this context, Blades of Fire (developed by MercurySteam) underperformed the Group's expectations despite receiving generally positive reviews from the industry press and players when it was released on 22 May 2025 for consoles and as a PC exclusive on the Epic Games Store. "This confirms the challenges faced by most industry peers and competitors in attracting consumers to new titles, particularly when these are not backed by an established brand driving a loyal Player community."

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