Why Embracer Group's Stock Is Down 13% This Week
Shares of video game company Embracer Group (OTC: THQQ.F), formerly known as THQ Nordic, have fallen dramatically this week. At 2:30 p.m. ET on Thursday, data from S&P Global Market Intelligence shows that the stock is down 13% since Friday's closing bell. A highly anticipated game title hit store shelves on Wednesday, but the release faced a tidal wave of critical reviews when reviewers' nondisclosure agreements expired on Monday morning.
In last week's earnings report, Embracer highlighted the reboot of the best-selling Saints Row crime-drama franchise as a driver of growth in the next quarter. CEO Lars Wingefors highlighted strong preorders and fan buzz for this title, noting that the prereleased avatar editor for this game had been installed more than 1.3 million times.
So expectations were high, but the game didn't impress early reviewers. Critics pointed out graphical glitches, a difficult character control system, and uninspired plot lines as reasons to avoid Saints Row IV. Embracer's shares fell 12.5% that day.
Source Fool.com
