Nacon Reports Weak Third Quarter, but Expects Strong Growth in 2025/26

Between October and December 2024, Nacon saw a decline in sales, mainly due to the gaming business rather than the accessories business. However, the French company is very optimistic for 2025/26, partly due to the release of Switch 2.

In the third quarter of 2024/25, Nacon generated revenues of €52.9 million, a decrease of ten per cent compared to the previous year. €24.5 million were generated by the games division and €25.2 million by the accessories division.

Games revenues decreased by 23.7% year-on-year. Games published in the third quarter of the current fiscal year totalled €9.8 million, a decrease of 52.9%. Only MXGP 24: The Official Motocross Videogame was released in the third quarter, whereas the prior year period was boosted by the success of Robocop: Rogue City and the releases of Cricket 24 and Gangs of Sherwood. Test Drive Unlimited: Solar Crown, released in September 2024, "is continuing to sell", and has more than 500,000 players. More content is to be added. GreedFall II: The Dying World, released in Early Access on 24 September 2024, was not mentioned in the report, but is having a difficult time on Steam. No information on Daedalic Entertainment's business was given in the report. The back catalogue showed good momentum, with revenues up 24.5% to €15.6 million. "That strong growth vindicates the strategy adopted by Nacon", the company states.

The accessories business performed positively, with continued strong sales of RIG headsets and Revolution 5 Pro controllers in the USA and Australia (5.3%). This performance was achieved despite the delayed launch of certain products (Cobra seat, Drive Pro Stand, Revosim range and Xbox Revolution X Unlimited controller), which will now be launched in 2025. The company writes: "In addition, Nacon has recently announced plans to build its future production plant for video gaming accessories at the Lauwin-Planque site in France. The plant will be operational later in 2025 and will give Nacon better control over its supply and logistics chain, as well as enabling it to keep more value in-house and optimise its inventories."

In the nine months from April to the end of December 2024, the company generated revenues of €129.9 million (+2.5%), of which €71.1 million was generated by games (-4.6%), €54.2 million by accessories (+11.1%) and €4.5 million by other areas (mobile and audio; +35.8%).

In the current quarter, January to March 2025, Rugby 25, Dragonkin: The Banished (Early Access) and Ambulance Life: A Paramedic Simulator (6 February 2025), developed by Aesir Interactive in Munich, are scheduled for release. The accessories business is expected to continue to perform well. For the year as a whole, Nacon expects sales to increase slightly, while operating profit may be lower than in the previous financial year. This forecast is based on the postponement of some previously announced games and delays in the launch of several accessory products.

Strong growth is expected in the first half of the 2025/26 financial year (April to end September 2025), including the contribution of new games and accessories not launched in 2024/25. The back catalogue will remain strong, with the publisher planning to release around ten new games, the main ones to be revealed during the Nacon Connect event on 6 March. The French publisher is also expecting the Nintendo Switch 2 to be released in the same period, for which Nacon already has compatible games and accessories (case, Joycon grip, wheel case for Joycon, new folding wheel, pouch, temp glass).

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