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While news like this make my primal hunter and collector instincts twitch I have to face that in 2018 I actively bought 6 games (2 of them addons) for myself for less then 20 bucks (after sales and wallet fund savings). Of these I played that new X-Com for a few hours and Titan Quest also for a few hours till I realized that it has no greatswords which deflated any further immediate enthusiasm to continue it. I might go back to all of them at some point but I think I resist the "buy everything pritty and colorful nao!" temptation. At least for a while.
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satoru: https://www.cdprojekt.com/en/wp-content/uploads-en/2018/11/condensed_financial_statement_q3_2018.pdf

GOG has been bleeding money the ENTIRETY of 2018

Stuff was bad BEFORE the '10th anniversary'

You want to 'go back' to when GOG was 'bleeding money like a screen door on a submarine'. Sure please explain how losing 500k PLN in Q1-Q3 is 'awesome'
I don't dispute your point, but nevertheless, its validity doesn't change mine one iota. Okay, granted, GOG was doing badly before the 10th Anniversary too.

That still doesn't mean it's was a good, or even okay, idea to ruin the site as of the 10th Anniversary.

And likewise, it still doesn't mean that the GOG shotcallers refusing to rollback the site is a good idea either.

Even if they were doing badly before, keeping the site in it's post-10th Anniversary state is an ongoing contributing factor to their condition of having a not-so-great income. Keeping the site like that is causing GOG to be worse off financially than it would otherwise be, even if it would still otherwise be in bad shape too.
Bad news is spreading like wildfire.

Gog could have contained it, but they didn't heed my warnings!
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RWarehall: Right now, GoG supplements the sales of games within Europe by both paying VAT and offering the "fair price package". If I were to guess, and GoG were forced to become more competitive, I'd expect that at the very least, they might start charging VAT in Europe. They would almost have to if they felt forced to reduce their cut below 30%.
Wut? Of course they 'supplement' VAT, every store does. It's required to be *included* in the price. They can't charge us for it, except by raising the price entirely. Since prices are mostly the same as other major stores they're not taking a hit on VAT here, they're doing the same as everyone else.

VAT being included in price is also why people who still complain 1$ =/ 1Euro are missing the point.
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Pheace: Wut? Of course they 'supplement' VAT, every store does. It's required to be *included* in the price. They can't charge us for it, except by raising the price entirely. Since prices are mostly the same as other major stores they're not taking a hit on VAT here, they're doing the same as everyone else.

VAT being included in price is also why people who still complain 1$ =/ 1Euro are missing the point.
The problem is that by including the VAT in the price and then also having the fair price package, they lose a lot of their 30% cut while developers still consider it a large cut. If Epic is a success and GoG needs to reduce that cut, I believe something will have to give in that regard.

But, that really depends on Epic's success as an actual storefront and not just a "free games" distributor.
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liquidsnakehpks: i wonder if Thronebreaker did more damage then they let on , i mean them having to admit not only it did not sell well but gog not having the reach....must not be enticing to people bringing their games here
Yeah, between that and GWENT. The double failure of Thronebreaker + the GWENT drop off really hurt them I think. They didn't expect it. They thought Thronebreaker would be an automatic success because it was a Witcher game and GWENT profits started off so great that they thought it would maintain it through official release.

It seems that way if you read between the lines of how they explained it in the financial statements.
Post edited February 26, 2019 by RWarehall
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RWarehall: The problem is that by including the VAT in the price and then also having the fair price package, they lose a lot of their 30% cut while developers still consider it a large cut. If Epic is a success and GoG needs to reduce that cut, I believe something will have to give in that regard.

But, that really depends on Epic's success as an actual storefront and not just a "free games" distributor.
You're making it sound like GOG is swallowing the entire VAT% or something. I highly doubt that. It just means EU games have a lower amount post-sale for the cut to be taken from. ((50E - ~20%VAT)x30% GOG cut) or something like that. That seems to have worked fine for most other stores. I doubt that's where the issue is. If anything the fair price package is where the issue would be, not in the least because it's based on an outdated premise. I'm honestly surprised they kept that package this long since I'm pretty sure they introduced it to appease the massive wail that came out when they introduced regional pricing.
Post edited February 26, 2019 by Pheace
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PixelBoy: These days I hardly check what new GOG releases are, because it's just some DLC to some games I'm not interested in.
At the same time, Steam has dropped their Greenlight thing, and now almost every game can access the store. When I browse Steam, I find countless of games that I'm interested in. There are lots of interesting games on itch.io too. But I can't even remember the last time that GOG released something that I'm really interested in.
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fronzelneekburm: Precisely. A little word on "curation" in general: Why does everyone buy on Steam? Because they've got all the games. Sure, there's the occasional whining about how all the shovelware clogs up the storefront and the actual good stuff barely gets a chance to be in the spotlight. But ultimately, it doesn't matter, because people still buy their games there.

Gog could work the same way: The place where you can get all the games - but without DRM. The way gog "curation" actually works is the complete opposite and IMHO harmful to the website. In the past, the curated store approach made sense. Because you're selling "good old games", so curation meant that you're going to get the best version available and ensured that the games would run on modern systems. And while the current gog still clings onto that same pretense, it's simply not true anymore: you get outdated builds, games that aren't feature-complete, a lot of them are buggy as hell and won't run properly (Hi, Bioshock Remastered!), support is hopelessly overburdened and a lot of the more recent releases simply aren't very good at all. "Curated store" went from a seal of quality to a seal of approval. As in: some rando gets to decide for me which games I want to play, Sorry, I'd rather decide for myself.

I share your sentiment that they don't release anything I'd be interested in any more. My average monthly spending on gog has gone down by 95% since the 10th anniversary update. That partly has to do with how off-putting I find the new site layout, but mostly with how gog rejected (or pointlessly delayed) pretty much all the games I'd be interested in.
That's bullcrap. Itch has 5x more games than gog. And with a smaller cut. Are they making any better because of that? No.
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fronzelneekburm: Precisely. A little word on "curation" in general: Why does everyone buy on Steam? Because they've got all the games. Sure, there's the occasional whining about how all the shovelware clogs up the storefront and the actual good stuff barely gets a chance to be in the spotlight. But ultimately, it doesn't matter, because people still buy their games there.

Gog could work the same way: The place where you can get all the games - but without DRM. The way gog "curation" actually works is the complete opposite and IMHO harmful to the website. In the past, the curated store approach made sense. Because you're selling "good old games", so curation meant that you're going to get the best version available and ensured that the games would run on modern systems. And while the current gog still clings onto that same pretense, it's simply not true anymore: you get outdated builds, games that aren't feature-complete, a lot of them are buggy as hell and won't run properly (Hi, Bioshock Remastered!), support is hopelessly overburdened and a lot of the more recent releases simply aren't very good at all. "Curated store" went from a seal of quality to a seal of approval. As in: some rando gets to decide for me which games I want to play, Sorry, I'd rather decide for myself.

I share your sentiment that they don't release anything I'd be interested in any more. My average monthly spending on gog has gone down by 95% since the 10th anniversary update. That partly has to do with how off-putting I find the new site layout, but mostly with how gog rejected (or pointlessly delayed) pretty much all the games I'd be interested in.
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blotunga: That's bullcrap. Itch has 5x more games than gog. And with a smaller cut. Are they making any better because of that? No.
Itch doesn't have any commercial aspirations either (neither do most of the devs they host), so that's a pretty dumb comparison.
All this talk of backing up your games... even if GOG were to close shop, they wouldn't come out one morning and say ''that's if folks, show's over, all downloads are down, your libraries are erased, if you haven't already backed it up then tough titties''.
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Pheace: You're making it sound like GOG is swallowing the entire VAT% or something. I highly doubt that. It just means EU games have a lower amount post-sale for the cut to be taken from. That seems to have worked fine for most other stores. I doubt that's where the issue is. If anything the fair price package is where the issue would be, not in the least because it's based on an outdated premise. I'm honestly surprised they kept that package this long since I'm pretty sure they introduced it to appease the massive wail that came out when they introduced regional pricing.
But they are! Because of "Fair Pricing". They are charging the same number of U.S. dollars because any difference is paid back in fair pricing. They will still have to pay the developers for those games bought with fair pricing as well as the VAT again even when that creates more fair pricing.

Sell in the U.S., they keep all 30%. Sell in Europe, all that regional pricing is taken straight out of their profits because it is given back to the users. Straight out of their 30%. It's the combination of the two that is the problem.
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timmy010: thronebreaker needs a 90% off sale
Wouldn't buy it even then. Even if they make another full-page ad that says "SAVE GOG.COM! BUY THRONEBREAKER!"
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Pheace: You're making it sound like GOG is swallowing the entire VAT% or something. I highly doubt that. It just means EU games have a lower amount post-sale for the cut to be taken from. That seems to have worked fine for most other stores. I doubt that's where the issue is. If anything the fair price package is where the issue would be, not in the least because it's based on an outdated premise. I'm honestly surprised they kept that package this long since I'm pretty sure they introduced it to appease the massive wail that came out when they introduced regional pricing.
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RWarehall: But they are! Because of "Fair Pricing". They are charging the same number of U.S. dollars because any difference is paid back in fair pricing. They will still have to pay the developers for those games bought with fair pricing as well as the VAT again even when that creates more fair pricing.

Sell in the U.S., they keep all 30%. Sell in Europe, all that regional pricing is taken straight out of their profits because it is given back to the users. Straight out of their 30%. It's the combination of the two that is the problem.
I agree fair pricing was always a concession out of their own pocket. I don't see that as a VAT problem though but I get your point. They should just drop the fair price package really, it's nonsense these days. 50$ vs (50E -~20%VAT + ~15% dollar currency diff). We may pay in a currency that's higher valued but devs get less of what we pay from an EU sale with their current prices because it doesn't even offset our VAT entirely.
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TentacleMayor: All this talk of backing up your games... even if GOG were to close shop, they wouldn't come out one morning and say ''that's if folks, show's over, all downloads are down, your libraries are erased, if you haven't already backed it up then tough titties''.
That's the way I see it too.
Well this piles on my already shitty day... when it rains it pours. I guess me spending the obscene amounts I've been spending on GOG this year, meant nothing, when not enough people were willing to spend.

Yesterday I was happy with Thimbleweed Parks announcing that 30% of their sales were on STEAM and 6% on GOG, which overall are very good numbers for GOG, and now this.

What's worse, even if the situation isn't as bad as some posts make it seem, just the rumor that it might be, will cause most people to reduce/stop their spending. This will be a hit for GOG.

How would I ever backup 1000+ games. :(
Should worst come to worst they won't have to spend much time on their final notice :p
Dear GOG users,

We have recently had to give serious thought to whether we could really keep GOG.com the way it is. We’ve debated on it for quite some time and, unfortunately, we’ve decided that GOG.com simply cannot remain i̶n̶ ̶i̶t̶s̶ ̶c̶u̶r̶r̶e̶n̶t̶ ̶f̶o̶r̶m̶.̶

We’re very grateful for all support we’ve received from all of you in the past t̶w̶o̶ eleven years. Working on GOG.com was a great adventure for all of us and an unforgettable journey to the past, through the long and wonderful history of PC gaming.

T̶h̶i̶s̶ ̶d̶o̶e̶s̶n̶'̶t̶ ̶m̶e̶a̶n̶ ̶t̶h̶e̶ ̶i̶d̶e̶a̶ ̶b̶e̶h̶i̶n̶d̶ ̶G̶O̶G̶ ̶i̶s̶ ̶g̶o̶n̶e̶ ̶f̶o̶r̶e̶v̶e̶r̶.̶ We're closing down the service and putting this era behind us a̶s̶ ̶n̶e̶w̶ ̶c̶h̶a̶l̶l̶e̶n̶g̶e̶s̶ ̶a̶w̶a̶i̶t̶.̶

On a technical note, this week we'll put in place a solution to allow everyone to re-download their games. Stay tuned to this page and follow us on Twitter and Facebook for updates.

All the best,
GOG.com Team
https://steamunpowered.eu/gog-com-is-not-shutting-down-the-end-of-beta-is-here/