The pioneers of VR Resolution Games have grown up – but they’ve turned red

Swedish game development company Resolution Games has grown exponentially since its inception ten years ago. Last year, the company doubled its turnover compared to the previous year. And 2022 was no exception to the growth trend, as the company’s latest annual report shows. Swedish virtual reality pioneers increased their sales from SEK 111 million to SEK 183.7 million last year.

If you look at the operating profit, it fell at -57 million crowns in 2022, which broke a streak of profitability for several years.

The increased costs can be derived from the company’s ambitions to expand, from company to company. Last year, three subsidiaries (one American and two Swedish) were registered.

The company also wanted to grow in scope. Coinciding with last year’s report, Resolution Games revealed that it plans to hire more than 200 people by 2022.

According to the financials, it didn’t really turn out that way. The recruitment race boils down to 91 new employees.

Currency effects have also affected decision games negatively, as a large percentage of sales are in dollars, while block costs are primarily in kroner.

In the report, the company wrote that interest in virtual reality and augmented reality technology is expected to grow in the coming years. Perhaps thanks to the strength of Apple’s new virtual reality project (Which was not mentioned in the report). However, Resolution Games raises a warning finger to the uncertainty of the outside world.

The availability of capital is essential for a company to scale — and if uncertainty persists, it could affect the company’s ability to raise capital, she says.