Today, during the Q1 2022 earnings report, Enad Global 7 announced that the Marvel MMORPG in development at Daybreak Games has been canceled. The company has reportedly reevaluated the risk associated with such a big investment (over $50 million) in a single project and decided to diversify investments in smaller projects based on current IPs.
The company had planned to invest more than SEK 500 million in the Marvel MMORPG project over the next three years. The company will now diversify this investment across multiple, smaller size projects within the group, including the previously announced major upgrades to The Lord of the Rings Online and DC Universe Online, and new game opportunities with our first party, original IPs. Along with this reallocation, the company expects a write down of approximately SEK 230 million in project related assets in Q2 2022. As one of the long-term investments, the change to the Marvel project plan will not impact near to medium term revenues and profits other than the balance sheet and P&L impact related to the write-down.
The Marvel MMORPG project was in development at Dimensional Ink, the studio helmed by Jack Emmert, who has recently left the company to join NetEase as the head of the new US-based studio Jackalope Games. It is possible Emmert's decision was influenced by the cancellation of the Marvel MMORPG.
The updated short-term lineup presented today by Enad Global 7 still includes launching Block N Load 2, Evil v Evil, and Fireshine's indie games pipeline this year. The company is also expecting a boost to Lord of the Rings Online thanks to the Amazon TV show Rings of Power, due to debut in early September.
Medium-term, EG7 still plans to deliver major updates to Magic Online, Lord of the Rings Online, and DC Universe Online, while new game releases include Power Chord, IGI, '83, Minimal Effect, and other indies from Fireshine.
Long-term, EG7 plans investments in game-as-a-service titles based on core first-party IPs, which could rekindle the hopes of Everquest fans.