A huge jump in operating profit has been announced by Europe’s top video game maker Infogrames. The French based company said it has significantly cut its debt and narrowed its losses and is now concentrating on improving profitability.
For the year 2004/05 operating profit was much better than analysts had expected at 22.2 million euros, compared with just 2.6 million the previous year. There was however a fall in sales due to the weak dollar and fewer game releases.
Debt has been reduced thanks to money available from the repurchase earlier this month of some digital gaming rights by US toymaker Hasbro.
Infogrames would not give a specific forecast for the current 2005/06 year during which the industry will move to a new generation of gaming consoles.Over the next 18 months, the market will take on new consoles from all three industry leaders: Microsoft, Sony and Nintendo.
In the past such technological changes have meant fluctuating sales for video games developers.