The value of tinyBuild shares declined sharply after the publication of the report for investors. In it, the company announced a drop in revenue, the resignation of the CFO and the decision not to publish games from third-party developers.

In the report, tinyBuild CEO and founder Alex Nichiporchik admitted that he was disappointed with the results of the first half of 2023, which turned out to be lower than expected. Now the company assumes that its financial indicators for the whole of 2023, as well as for 2024, will also be significantly lower than the initial forecasts.

One of the reasons for the fall is the difficult situation in the gaming market. Platforms have become much less invested in AAA games, and deals with them have been an important driver of tinyBuild’s growth in recent years. Among other reasons are the insufficient efficiency of the publisher Versus Evil and the studio Red Cerberus owned by the company, the increase in the cost of creating games and the growth of deductions to third—party developers.

The company notes that what is happening may lead to the depreciation of tinyBuild assets and reorganization.

However, tinyBuild notes that now it has a record number of new games in development, and games from the back catalog continue to sell well. Therefore, instead of publishing other people’s titles, she now intends to focus on her own IP. This may help to rectify the situation.

tinyBuild also reported in the report that the CFO Tony Assenza decided to leave the company for personal reasons. His place will be taken by Giasone Salati, the former head of the M&A team.

At the time of writing the news, the value of tinyBuild shares collapsed by 78.8% to £7.3 ($9.8) apiece. This is the lowest price in the history of the company. Since going public in 2021, tinyBuild has fallen by 92.86%.