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EVE Online: CCP Posts $21M in Losses for Fiscal 2013

SBFordSBFord Associate Editor - News ManagerThe Land of AZPosts: 16,622MMORPG.COM Staff Uncommon

CCP Games is reporting over $21M in losses for fiscal 2013 according to a report at GamesIndustry.biz. While overall revenue increased significantly, huge corporate investment in research and development contributed to the decline.

A note in CCP's full financial presentation seems to support the theory that a large factor in this $40 million increase in R&D costs was the removal of asset value previously attributed to World of Darkness.

"During the year the company assessed its capitalized development assets and determined that a portion of those assets would likely not have future economic benefits," a statement accompanying the report explains. "IAS 38 requires that such assets should be derecognized and removed from the balance sheet. The expense related to the derecognized assets are presented as part of research and development expense in the statement of comprehensive income."

Read more at the link above.

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Comments

  • asmkm22asmkm22 Anchorage, AKPosts: 1,788Member

    Here is the link to the actual balance sheet.

    It's been out for a month now.

    You make me like charity

  • CrusadesCrusades Columbus, OHPosts: 480Member
    How is this even possible?
  • CrusadesCrusades Columbus, OHPosts: 480Member
    I guess putting Eve in the title is just misconstrued
  • DamonVileDamonVile Vancouver, BCPosts: 4,818Member
    Originally posted by Crusades
    How is this even possible?

    It has nothing to do with eve, but when you produce a massive flop and then dump a bunch of money into a game you scrap....you tend to lose money.

    The title of this thread is a bit misleading. EvE the game I'm sure is making them a fair bit of money and this loss will go away when they stop wasting money....or put it into better projects that actually produce.

  • orbitxoorbitxo fort lauderdale, FLPosts: 1,408Member Uncommon

    Another one bites the

    'DUST'...

     

    get it?

     
  • kitaradkitarad RomePosts: 1,745Member Uncommon
    it's bites not bits

    image

  • orbitxoorbitxo fort lauderdale, FLPosts: 1,408Member Uncommon

    meh...i didnt loose a dollar over it..

    <.<

    in all fairness, i like CCP, but someone there is navigating this comp eyes closed on the industry- imo.

     

  • Crazy_StickCrazy_Stick Privacy Preferred, NCPosts: 1,059Member
    Originally posted by orbitxo

    meh...i didnt loose a dollar over it..

    <.<

    in all fairness, i like CCP, but someone there is navigating this comp eyes closed on the industry- imo.

     

     

    I disagree in that I think they had good vision for where they needed to go as a company. It's the implementation of those ideas, the achievement planning, that has lead to some sense of failure.

  • DauzqulDauzqul Detroit, MIPosts: 1,407Member Uncommon

    I don't get why it costs so much to make these games - especially since most of them are developed on an engine that is already created, e.g., unreal engine etc.

    Curt Schilling...   all those millions invested in a game that wasn't even close to being completed.

    It's out of control.

     

    There are countless programmers and artists that are yearning to work or be part of a promising project.

  • Laughing-manLaughing-man Dublin, OHPosts: 3,415Member Uncommon
    Originally posted by Dauzqul

    I don't get why it costs so much to make these games - especially since most of them are developed on an engine that is already created, e.g., unreal engine etc.

    Curt Schilling...   all those millions invested in a game that wasn't even close to being completed.

    It's out of control.

     

    There are countless programmers and artists that are yearning to work or be part of a promising project.

    Programming developers, they cost money to hire.

  • rawfoxrawfox HamburgPosts: 648Member Uncommon
    Originally posted by orbitxo

    Another one bites the

    'DUST'...

     

    get it?

     

    was my first thought as well^^

  • SpiiderSpiider BinzPosts: 474Member Uncommon
    CCP is paying the piper now. Anyone surprised is not really informed over the past 5 years of their work.

    No fate but what we make, so make me a ham sandwich please.

  • orbitxoorbitxo fort lauderdale, FLPosts: 1,408Member Uncommon
    Originally posted by Spiider
    CCP is paying the piper now. Anyone surprised is not really informed over the past 5 years of their work.

    xcly.

    eve was my first mmo ever-never forget! (4.5yrs) unfortunately i had to step outta that ship..and land, not on a ps4.

  • Mors.MagneMors.Magne LondonPosts: 1,420Member

    I cancelled my two accounts this year and I've played Eve Online since 2007.

     

    I view Elite: Dangerous as Eve Online's successor. Elite: Dangerous will do everything that CCP should have aimed to do - and stuck to.

     

    Eve Online has partly been a victim of a rabid fan base who don't seem to be able to think straight.

  • adam_noxadam_nox hays, KSPosts: 2,036Member Uncommon
    I suspect that WoD funding was just a way to steal 40 million from corporate coffers and distribute to friends who pretend to be 'working'.
  • hfztthfztt GlostrupPosts: 840Member Uncommon
    Originally posted by rawfox
    Originally posted by orbitxo

    Another one bites the

    'DUST'...

     

    get it?

     

    was my first thought as well^^

    Yeah, bur with WoD shutting down you thought wrong. If you read though the balance sheet you will see that the R&D write off was a product that was neither EvE nor DUST.

  • hfztthfztt GlostrupPosts: 840Member Uncommon
    Originally posted by Mors.Magne

    I cancelled my two accounts this year and I've played Eve Online since 2007.

    I view Elite: Dangerous as Eve Online's successor. Elite: Dangerous will do everything that CCP should have aimed to do - and stuck to.

    Eve Online has partly been a victim of a rabid fan base who don't seem to be able to think straight.

    I'll let the young people with the twitch abilities of my own youth have fun with Elite and SC. I dont assume to have the twitch abilities I had 25 years ago, thus those kids while whipe thier behinds with old farts my age that should be stupid enough to enter those games.

    Fortunately for CCP many of thier players are old farts like me...

  • hammarushammarus minneapolis, MNPosts: 184Member
    The issue with CCP began with the purchase of White Wolf.  Not that White Wolf as its own entity is a bad thing, it just wasn't/isn't right for CCP. Everything went downhill from there.
  • lindenmeyerlindenmeyer Natal, ALPosts: 38Member

    i bet it was because Dust , that fps for console only..

     

  • DenambrenDenambren Montreal, QCPosts: 320Member Uncommon
    Originally posted by hammarus
    The issue with CCP began with the purchase of White Wolf.  Not that White Wolf as its own entity is a bad thing, it just wasn't/isn't right for CCP. Everything went downhill from there.

    Not that I disagree with that, but it's hard to be sure if it might or might not have been a good fit, since we never actually saw anything come from the White Wolf purchase. As in.. absolutely nothing over several years.

  • TibernicuspaTibernicuspa Amherest, MAPosts: 1,198Member
    Guys, this has nothing to do with Eve really. Eve is still going strong, the second biggest MMO on the market, as much as you want to deny it.
  • hammarushammarus minneapolis, MNPosts: 184Member
    Originally posted by Denambren
    Originally posted by hammarus
    The issue with CCP began with the purchase of White Wolf.  Not that White Wolf as its own entity is a bad thing, it just wasn't/isn't right for CCP. Everything went downhill from there.

    Not that I disagree with that, but it's hard to be sure if it might or might not have been a good fit, since we never actually saw anything come from the White Wolf purchase. As in.. absolutely nothing over several years.

    Which is why I said what I said.  Its purchase bore absolutely no fruit, and with staffing and overhead, I would suggest it was a drag on the business.

  • hammarushammarus minneapolis, MNPosts: 184Member
    Originally posted by Tibernicuspa
    Guys, this has nothing to do with Eve really. Eve is still going strong, the second biggest MMO on the market, as much as you want to deny it.
     

    This has everything to do with EVE.  Oh, not in the sense that the game is not healthy, but as virtually CCP's only income.  It puts more pressure on the business to make sure EVE Online IS healthy!

  • asmkm22asmkm22 Anchorage, AKPosts: 1,788Member
    Originally posted by Dauzqul

    I don't get why it costs so much to make these games - especially since most of them are developed on an engine that is already created, e.g., unreal engine etc.

    Curt Schilling...   all those millions invested in a game that wasn't even close to being completed.

    It's out of control.

     

    There are countless programmers and artists that are yearning to work or be part of a promising project.

    Well, apparently you have no idea what kind of work is involved, if you just assume that licensing a game engine means all the hard stuff is done for  you.

    Anyway, if you really think about it, something like a 40M budget for a video game that's developed over, say, 3 years, isn't too bad.  That's about 100-150 employees working for 60-80k a year each (some more some less), plus licensing costs (the engine and other things aren't free), plus datacenters, plus expensive service agreements with the local ISP(s) to make sure bandwidth is covered, and of course marketing costs.

    Yes, when you start getting into games with overblown budgets like SWtOR, it becomes an issue of poor planning and poor efficiency more of than not.

    You make me like charity

  • asmkm22asmkm22 Anchorage, AKPosts: 1,788Member
    Originally posted by hammarus
    Originally posted by Denambren
    Originally posted by hammarus
    The issue with CCP began with the purchase of White Wolf.  Not that White Wolf as its own entity is a bad thing, it just wasn't/isn't right for CCP. Everything went downhill from there.

    Not that I disagree with that, but it's hard to be sure if it might or might not have been a good fit, since we never actually saw anything come from the White Wolf purchase. As in.. absolutely nothing over several years.

    Which is why I said what I said.  Its purchase bore absolutely no fruit, and with staffing and overhead, I would suggest it was a drag on the business.

    Unlikely, considering a small RPG publishing company is pretty small beans compared to even an indie video game studio.

    I think the real issue is that CCP screwed up with the dev resources for EVE around the time of the Incarna expansion.  If you remember, this same Atlanta-based studio was hit with tons of layoffs at the time, as CCP refocused efforts on fixing EVE's direction, and developing Dust.  The Atlanta studio was never really the same after that, and I doubt the WoD team has the proper leadership and vision in place to make use of whatever resources did happen to come their way.

    You make me like charity

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