Football Manager 25 cancelled: FM26 make or break for Sports Interactive

In a surprising and disappointing announcement, Sports Interactive (SI) and SEGA have revealed that Football Manager 25 (FM25) has been officially cancelled.

For decades, the Football Manager series has been synonymous with overheating laptops, procrastination in university libraries, and neglected loved ones during the holiday period as fans of the immersive football simulator strive for tactical perfection.

The news comes after a previous setback in November 2024, when the studio responsible for delivering the game, SI, made the decision to delay the game for release until March 2025.

But fans and YouTube "FM influencers" have been speculating for months whether or not a game would actually arrive in March, with many beta tests and formalities that the FM community had become accustomed to over the years were not happening.

The very little information coming out of the London-based studio has caused frustration amongst fans of the series.

Why was FM25 cancelled?

In a statement posted on the official Football Manager website, SI explained that the decision to cancel FM25 was made after extensive internal discussions and careful consideration.

The decision to cancel FM25 also highlights the challenges of transitioning to a new game engine.

SI had been working on switching to the Unity engine for six years, but the complexities of this transition ultimately proved too great to overcome in time for FM25.

This has led some fans to question whether the studio bit off more than it could chew, particularly given the risks associated with such a significant technical overhaul.

SI had initially set out to deliver the "biggest technical and visual advancement in the series for a generation," aiming to lay the foundation for a new era of Football Manager.

However, as development progressed, it became clear that the game would not achieve the required standard, even after multiple delays.

The studio emphasised that releasing an unfinished product was not an option, as it would compromise the trust and loyalty of their fanbase.

Will Football Manager survive?

The cancellation has undoubtedly impacted one of the FM community, who have undoubtedly been the most loyal fanbase in gaming with many players buying the game since the early 2000s.

While many fans expressed their disappointment, others acknowledged the difficult position SI found itself in and appreciated the studio's commitment to quality over a rushed release.

For some fans, the cancellation is a bitter pill to swallow, especially given the multiple delays and the lack of communication leading up to the announcement.

One Reddit user lamented the lack of significant changes in the franchise over the years, stating, "The game hasn’t changed in about 20 years, save for some wanky inclusions like hand gestures in WhatsApp style messages."

But many FM fans criticised SI for failing to deliver on their promises, particularly after setting high expectations for FM25 for almost five years.

Why aren't Sports Interactive releasing a FM24 database update?

Another point of contention among fans is the lack of a roster update for Football Manager 2024.

Many had hoped that, even if FM25 was cancelled, SI would at least provide an updated database for the current season.

However, legal issues surrounding licenses likely made this impossible.

How much will the FM25 cancellation cost Sports Interactive & SEGA?

The cancellation of FM25 raises questions about the future of the Football Manager franchise. For a series that has relied on annual releases to generate revenue, skipping a year is a significant move.

According to publicly available financial statements, SI has incurred an actual operating loss of £115 million between March 2019 and March 2024 due to the development costs of FM25.

These costs have been primarily covered by SEGA, which has been footing the bill for the ambitious project.

The development costs for FM25 have already exceeded £128 million as of March 2024, with estimates suggesting that the total cost could now be well over £180 million as of early 2025. This figure is expected to rise further, potentially surpassing £200 million by the time the next iteration of the game is released.

The financial strain is exacerbated by the fact that SI’s official operating profits over the past five years have been artificially inflated by the way development costs are accounted for.

Specifically, the costs of SI’s subsidiary, Sports Interactive VGDC Limited (SI VGDC), which was established in January 2020 to handle FM25’s development, are recognised as "studio-generated revenue" in SI’s financial statements.

This accounting practice masks the true financial impact of FM25’s development, as the revenue is theoretical and tied to the game’s eventual release rather than actual sales.

When adjusted for these accounting practices, SI’s actual operating loss over the past five years stands at £115 million, a figure that underscores the financial burden of FM25’s development. This loss is expected to grow as development costs continue to mount.

Will FM26 get released?

When Sports Interactive announced a full architectural overhaul of the game during the Covid-19 pandemic, there was optimism among the community about where FM was headed.

After all, Sports Interactive have had a sublime reputation as an innovative gaming studio that, as one fan put it, only having "one fuck up in 20 years is pretty darn good."

The challenges of completely rearchitecting the game, particularly under the pressure of a yearly release cycle, has caused significant issues for SI.

Sports Interactive and SEGA have no other option than to release FM26 on schedule to attempt to repair the damage caused by the FM25 cancellation.

Despite the disappointment, the cancellation can be seen as an opportunity for SI to refocus and deliver a truly exceptional game in 2026.

By shifting their full attention to the next release, the studio has the chance to address the technical and visual shortcomings that plagued FM25 and create a game that sets a new standard for the franchise.

Should they not deliver FM26 on time, and to the high standards that have now been set, it could be an irrecoverable hit to the reputation of the studio and the FM franchise.

The pressure is now on SI to deliver a groundbreaking game in 2026, one that not only meets but exceeds fan expectations.

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