Astragon Entertainment has made the strategic decision to exit its low-margin physical distribution business. We talked to the two co-CEOs, Julia Pfiffer and Tim Schmitz, about this decision. Going forward, their physical distribution will be handled by experienced external partners.
In a recent trading update from its parent company, everplay revealed that astragon Entertainment had made the strategic decision to exit its low-margin physical distribution business completely by the second half of 2025. "While the effect on adjusted EBITDA is limited, it does provide a headwind to revenues," the announcement reads. GamesMarkt approached astragon Entertainment for comment, and the two co-CEOs, Julia Pfiffer and Tim Schmitz, explained this decision.
GamesMarkt: Why did astragon Entertainment decide to withdraw completely from the physical distribution business?
Julia Pfiffer & Tim Schmitz: "For many years, astragon has been a specialized and trusted partner for physical distribution in the German-speaking market. However, ongoing changes in consumer behavior towards brick-and-mortar retail require new approaches. As part of our strategic realignment, we have decided to evolve our distribution model and align it more closely with our established international setup."
GamesMarkt: Does this decision apply to astragon's own games and partner games? Ultimately, Giants' Farming Simulator 25, which astragon distributed in Germany, was the best-selling physical PC game of 2025 according to GfK.
Julia Pfiffer & Tim Schmitz: "astragon titles will continue to be available physically in retail stores. Going forward, distribution will be handled via experienced external partners, as is already the case in our international business. Recent successful partner releases underline astragon's deep expertise in distribution and marketing. We are working closely with partners to ensure a smooth transition and uninterrupted availability for retailers and customers alike."
GamesMarkt: What effect do you expect this decision to have on astragon's business in future?
Julia Pfiffer & Tim Schmitz: "This step positions astragon for sustainable brand growth in an evolving market, across both digital and physical channels. With a strong portfolio of first-party IPs and a clear focus on publishing, and brand development, astragon is well positioned for continued growth. Fans can continue to purchase astragon titles in physical form, while the company further sharpens its strategic focus and adapts to the evolving market environment."
