CCP's finances are actually great

Hot take, in contrast to the droolers on Reddit.

The state of comprehensive income speaks for itself. CCP is not ‘losing money’, they are in fact making millions and reinvesting.

Game revenue is up, from 55 to 60 million. Meanwhile, the administrative cost of maintaining the game is much less than revenue. If Eve were actually in maintenance mode, it would generate a profit, and be sustainable. There is some wastage, about 13 million a year gets spent advertising to me on Youtube (I already play the game, thanks), and 5 million is spent disputing credit charges from people who thought this was a casual AFK version of Farmville. However, look at the whopping research and development budget: 45 million dollars! That’s all discretionary non-essential spending on boondoggles and whatamagadgits and hyperraffles and bitcoins in space, and it represents longterm investment in programming and design. That’s a significant expenditure, but just an optional one. At any moment, they can reduce the investment and suddenly they are ‘profitable’ again. This is a very flexible portfolio. So I don’t think they are going bankrupt anytime soon.

I asked ChatGPT if I’m right, and ChatGPT said I’m actually brilliant. Then I asked ChatGPT to summarize my views, in my style, “R&D is not typically required to keep the game running. It’s a long-term reinvestment into new tech, features, or projects. While some R&D might be committed in contracts or internal roadmaps, it’s generally a variable cost and could be cut if needed. They’re choosing to run at a loss by heavily reinvesting — which they can pull back at any time.”

Sometimes I think the worst thing for EvE, is not the griefers and gankers and spacebullies. Even worse are all the doom and gloom carebear bitter vets, who are constantly crying about how the game is dead and dying and blablabla. Honestly, if you look at the bottom line, the game is in a pretty great state. The only thing they need to do now is buff the coercer, and add a tetris minigame for miners.

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Sad Hilmar noises. :thinking:

:ccpguard:

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Is the important part that doomers and ragers forget. Investments look scary and gloomy but they’re not, not necessarily. It’s what companies DO, they try out new ventures and ideas see what works and what doesn’t where most won’t and some will. The trying out part costs money and some of that is lost while other times it pays back just fine.

The problem is that CCP has a history of making bad investment choices.

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Most polite understatement of the century. :thinking:

:face_with_hand_over_mouth:

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The probability of making a good investment choice, raises significantly with every consecutive bad investment choice
– Sage of Turnur

:nerd_face:
* crosses fingers for EVE Vanguard success *

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I don’t have access to the financial records of Cryptic Studios in 2021. Therefor I cannot quote details of financial gains and losses. This is the company that created City of Heroes and City of Villains for NCSoft. After development of those game NCSoft split Cryptic Studios up between, Paragon Studios and Cryptic Studios and acquired the IP rights of both games and ownership of Paragon Studios. Cryptic Studios working on a Marvel based version lost the contract with Marvel Entertainment. They created yet another superhero based MMO call Champions in 2007 and promptly got sued by Marvel. Champions continues to this day, meanwhile NCSoft shutdown both Paragon Studios and their related games in 2012. Disney shutdown Marvel Heroes in 2017.

In 2010 they released Star Trek Online, and Cryptic Studios was sold off to Chinese film and game studio, Perfect World. During 2012 Cyptic Studios dropped the subscription model and went “free to play” with in game currency much like PLEX. Players could buy Zen coins for the games. In 2013 they released their third game called Neverwinter D&D. At this point, from 2013 to 2019, I would guess they were actually doing well financially speaking. All the games were making revenues and this made their overlords happy.

In 2017, they planned a fourth game. Described as an MMO based on Magic the Gathering, titled Magic: Legends. The new game suffered major setbacks, was downgraded from MMO to single player, and finally while in beta, it was cancelled in 2021. At this point, it was obvious they were losing revenues.

In 2022, Perfect World dropped out of online games and continued making movies. Cryptic Studios was sold and placed under Gearbox by their new owners Embracer Group.

Since this sale 3 years ago, no new projects have been announced. Cryptic Studios is quietly maintaining their 3 games; Champions, Star Trek, and Neverwinter. Out of the games available, while Champions has the lowest estimation of daily player population, it continues to hold its own. Star Trek’s population is 15 times greater than Champions, it surprisingly in second place. Neverwinter leads the pack roughly 25% higher than Star Trek in population.

Lesson: Companies get bought and sold, projects get cancelled, people get hired, fired, and quit, but the games remain as long as the studio continues to exist.

Fly safe o7

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would prefer they focus on eve first and then the fps game that they seem to forgot about it…again

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Investment into the future is great if it actually yields positive returns in said future.

With CCP, however, these investments have only resulted in losses in the past. WIS died, Dust died, Vampire whatever died, Legion died, Spark died, Valkyrie died, Nova died, Frontiers is just a grifting scheme. As a result of all these failures, EVE Online itself has suffered greatly because CCP had to milk it ever harder, ever more toxically to get the necessary money for these courageous experiments.

These 45M USD are not investment in the traditional sense. They are like an investment into a meme crypto coin after a crypto bro told you this is the new best stuff on the block.

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Maybe next year CCP will stop all that R&D expenditure and spend all that 40-50 mil on a new fool proof project that will make them a fortune…

:smiling_face_with_horns:

Famous last words. :face_savoring_food:.. :index_pointing_up:

I’m just passing by :man_running:

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Pearl Abyss are selling EvE Online and other mainstream publishers are not looking at it. I appreciate they are just rumours at this stage, but we all highly doubt they’re incorrect.

We’d be able to convince at least one reputable mainstream publisher to pick up Eve Online if there was any significant growth.

It is likely that this is because of the side projects that adorn eve online, that is of course saddening.

As it stands, unless you’re willing to purchase the business— we have a significant problem.

Eve online is not dead in six months. Absolutely not, but we are starting to feel like this may be a significant point in the timeline.

watch it as EA buy it and turn it into a bf2048 mess

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Don’t forget those $40mil were not earned by CCP from EVE Online sales. It is an external investment capital raised specifically for EVE Frontier development.

It is displayed as a cost because it is “owed” to investors.

Why dont CCP monetize the early build of vanguard before release, like they did for frontier ? This ‘could’ improve the development and finances. :thinking:

remember that EVE is a niche game? slow paced / patient player / skill system ? maybe CCP can get growth if they increased the types of expert systems available at some lower plex price with 1 day duration, then alliances can gib ship-fit+ 1-day expert sys for fights so more $$$.

You definitely need a reality check on what’s really going on here… Do you really think that they are going to be honest about the numbers when they are trying to sell it??? They are definitely doctoring those numbers to make it look better for sale…

This game has lost half its players over the past five years and that trend has not changed… It’s no coincidence that all of a sudden their numbers just happen to start looking better with absolutely nothing to justify it other than they need it to look good to sell it…

As far as the “carebear vets” go, they have been more than justified in their complaints about what is being done to this game… Funny how it was perfectly okay for gankers to cry and get the warp core stabilizers restricted to make ganking new and solo players easier… You can’t have it both ways where gankers can cry to get what they want and no one can oppose it without being put down…

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Oh no, please don’t rumourmonger.

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Yes I do expect them to be honest, otherwise it’s called fraud. If you are going to accuse CCP of fraud, please bring evidence.

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There might be something in what you’ve said, but it’s difficult to work out. Eve Online is definitely an alternative experience.

I don’t think Shaigh is accusing CCP of outright frau. It’s naïve to assume that companies don’t massage their narratives when prepping for a sale.
The financial report still shows a worsening loss, so if anything, it proves CCP isn’t hiding the bleeding. But the timing of narrative shifts, the framing of metrics, and sudden PR optimism around retention, monetization, and growth are all conveniently surfacing right before a potential acquisition… yeah this naturally raise eyebrows.
I reckon Eve will enter ghost-mode in three years, unless the new owners pull off a miracle.

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