Team17 Issues Profit Warning but Insists Bright Future Ahead
After much speculation in the City this morning, Team17, one of the biggest independent developers in the video game industry, have issued a profit warning. However, the head of the company, Debbie Bestwick, insists that this is merely a temporary setback and the company remains firmly committed to a bright future.
Company spokesperson, Mark Turner, stated that as the credit crunch continues to hit households, some consumers have been finding it hard to justify spending money on expensive video games. Consequently, many retailers are reducing their orders and Team17, who had been expecting an increase, have been forced to revise their financial forecast.
Despite the current situation, Bestwich remained upbeat about the future. She said, “We have some big projects in the works, including a major partnership with another independent studio. I am confident that when the market recovers we will be in an excellent position to reap the benefits”.
Swift action has been taken at the company in order to minimise the effects of the current economic climate. All members of management have agreed to take a pay cut, and more restrictive spending policies have been put in place. In addition, Team17 are actively exploring the possibility of partnerships with other developers.
Asked about the current state of the video games industry, Bestwick stated, “We have seen a lot of consolidation in recent years, but the industry is still thriving. We are seeing some innovative and exciting new projects being worked on, and there has never been a better time for independent developers like us.”
The company has also moved to reassure shareholders that their investments are safe, stating that the profits warning is merely a blip on the road to success. Team17 are investing heavily in their projects and are confident that they will be able to weather the current storm and emerge in a stronger position in the near future.