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RWarehall: [...] Hopefully the drop is mostly development costs for Galaxy, which means they will bounce back up when short-term development nears completion.
Or they blew a crapload of money on purchasing the rights to some more heavily sought-after games, and are going to inundate the store with more of them this year, SSI-D&D-bundle-style; And there will be much rejoicing. :)

Or GOG Connect is greatly weakening their bottom line, since everyone is just buying games on Steam and waiting for them to come to Connect to get them here for "free", and GOG will be sold off to EA in a couple years; And there will be much wailing and gnashing of teeth. =(
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HunchBluntley: Or GOG Connect is greatly weakening their bottom line, since everyone is just buying games on Steam and waiting for them to come to Connect to get them here for "free", and GOG will be sold off to EA in a couple years; And there will be much wailing and gnashing of teeth. =(
Nah their revenues increased... the profits decreased. This means they made more money in 2016 but had greater expenses, operating cost, or something similar that lowered their overall profits. Most logical explanation is Galaxy.

Unless they pay publishers for each game redeemed on connect for some reason in-order to offer it as a way to expand their user-base... but I would hope not because that would be a shitty deal and so not worth it. If so cut that fast, but I really doubt it.


EDIT: The buyout by EA was a good twist though. xD
Post edited April 26, 2017 by BKGaming
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HunchBluntley: Or GOG Connect is greatly weakening their bottom line, since everyone is just buying games on Steam and waiting for them to come to Connect to get them here for "free", and GOG will be sold off to EA in a couple years; And there will be much wailing and gnashing of teeth. =(
Tfishell, stop possessing other people.
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HunchBluntley: Or GOG Connect is greatly weakening their bottom line, since everyone is just buying games on Steam and waiting for them to come to Connect to get them here for "free", and GOG will be sold off to EA in a couple years; And there will be much wailing and gnashing of teeth. =(
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Grargar: Tfishell, stop possessing other people.
[shudders, eyes stop rolling back in his head]
...Wait, where am I? ...I don't remember making that post!
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RWarehall: The good thing is they are still quite profitable. Hopefully the drop is mostly development costs for Galaxy, which means they will bounce back up when short-term development nears completion.
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BKGaming: Most likely... you don't have an increase in revenue like that and less profit unless that money was going to some new significant expense or investment that wasn't around in 2015. Only thing publicly that could explain it that we know of is Galaxy.
Specifically Galaxy and the addition of networking capabilities and matchmaking services for Gwent. The server costs are probably billed to the development arm, but all the effort and expenses to program that in Galaxy probably gets charged to GoG. (The "collaboration" was mentioned in the 3rd quarter summary)
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RWarehall: ...
2016: 4,811,000 PLN
2015: 10,442,000 PLN
2014: 7,105,000 PLN
2013: 9,513,000 PLN
2012: 8,247,000 PLN

1 USD ~ 4 PLN
...
According to this, 2016 was the worst year since at least 2012. Let's hope it was one time costs, not a permanent decline in profitability.

I looked at the chart USD to PLN over the last years. PLN weakened slightly, up to 2015 it was 3:1, since 2015 4:1. This means the situation (in USD) is even slightly worse.
The financial data for Q1 2017 is out now:
https://www.cdprojekt.com/en/investors/result-center/
GOG had increased expenses related to Gwent, but sales revenue was up 63% and profit compared to prior year quarter was up 495% (though 2016 quarter 1 profit was only ~262,000 PLN)
Should I be worried? I don't want to go back to the dark side. If you know what I mean. I love this service.
So GOG's sales increased by 60% year on year (page 25). Selling costs have gone up (Gwent related?) - according to that report, GOG's profit from a $9.99 purchase is $0.07.
From page 35:
With regard to revenues, the most important product offered by the GOG.com segment in the first thiree months of 2017 was GWENT: The Witcher Card Game. GOG.com revenues associated with GWENT in-game transactions represented an important component of the segment’s Q1 revenues, compared to the corresponding period in 2016.
About GOG sharing the burden of Gwent:
The company also intends to reach new customers through GWENT: The Witcher Card Game – this game
requires the GOG Galaxy client, which also provides full access to the GOG.com store. In future reporting periods GOG.com will undertake marketing campaigns specifically targeting GWENT players, with the aim to display the full product range offered on GOG.com. Adding support for further language versions, currencies and payment channels is also being contemplated.
GOG.com financial results will be strongly affected by sales of GWENT: The Witcher Card Game. GOG Poland has established a consortium with CD PROJEKT RED to carry out joint development of the game. In the framework of this consortium GOG.com is responsible for all online gameplay features and matchmaking. Consequently, a portion of the game’s development costs and revenues are attributable to GOG.com.
Page 58:
On 15 May 2017 the Management Boards of two companies wholly owned by CD PROJEKT S.A., i.e. GOG Poland Sp. z o.o. and GOG Ltd. undertook resolutions whose purpose is to effect a merger between said companies. The process involves a cross-border merger between GOG Poland Sp. z o.o. (the Acquirer) and GOG Ltd. (the Acquiree) and transfer of all operating activities of GOG Ltd. to Poland. This is done in order to simplify the organizational structure of the CD PROJEKT Capital Group.
Need I say again that the future is dark? All this focus on Gwent and... everything. But then again, it has been for years...
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Cavalary: Need I say again that the future is dark? All this focus on Gwent and... everything. But then again, it has been for years...
I'd say its actually rather bright. I personally don't care one bit for Magic - The Witchering, but others do. And considering that its alread pretty successful before full release is good for CDP which is also good for gog. Its their current big thing; it is only natural that they beat the drum for it and get the focus there. They did for each of the Witcher titles when they closed in to their releases, they do now with Gwent and they will most likely do it with Cyberpunk 2077.
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anothername: I'd say its actually rather bright. I personally don't care one bit for Magic - The Witchering, but others do. And considering that its alread pretty successful before full release is good for CDP which is also good for gog. Its their current big thing; it is only natural that they beat the drum for it and get the focus there. They did for each of the Witcher titles when they closed in to their releases, they do now with Gwent and they will most likely do it with Cyberpunk 2077.
Right? I don't understand all this hate, especially since it feels so generalized. :(
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Cavalary: Need I say again that the future is dark? All this focus on Gwent and... everything. But then again, it has been for years...
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anothername: I'd say its actually rather bright. I personally don't care one bit for Magic - The Witchering, but others do. And considering that its alread pretty successful before full release is good for CDP which is also good for gog. Its their current big thing; it is only natural that they beat the drum for it and get the focus there. They did for each of the Witcher titles when they closed in to their releases, they do now with Gwent and they will most likely do it with Cyberpunk 2077.
Bright for their finances and the business mindset, dark for those who were here for values and the promise (or at least the hope) of changing the industry (and possibly off (legal) purchases for good (again), since the other notable options remain worse of course). Or more exactly for the few who hadn't been chased away already by now, as for most the last straw came well before.