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so CCP lost 44 mil in the last 18 months on R&D?

First post
Author
Slicr
#21 - 2014-09-08 05:38:02 UTC
Jarod Garamonde wrote:
Morganta wrote:
there appear to be reports circulating stating a new game has been scraped and in the last 18 months eve lost 44 million bucks on R&D yet only makes about 6 million or less a year???

is there an existing discussion about this? is there official news?
what got scrapped?
should I just "not worry, it will be all right?"

is this just propaganda from the RSI people?



Your numbers are made-up and stupid. Your rumor-mongering deserves a lock.
Contract all your stuff to me, and biomass your toons.



I can see numbers being made up, but numbers being stupid?

I believe in being Pro-Active as Opposed to Reactive. Reactive tends to be more costly in time and money.

Ahost Gceo
Center for Advanced Studies
Gallente Federation
#22 - 2014-09-08 06:39:12 UTC
Morganta wrote:
there appear to be reports circulating stating a new game has been scraped and in the last 18 months eve lost 44 million bucks on R&D yet only makes about 6 million or less a year???

is there an existing discussion about this? is there official news?
what got scrapped?
should I just "not worry, it will be all right?"

is this just propaganda from the RSI people?


By Jove you are fugly.

CCP ignore me please, I make too much sense.

Don Aubaris
#23 - 2014-09-08 06:55:27 UTC
I heared that new accounting rules forced CCP to subject all CCP DEVs to an IQ test.
This to have a better idea of their value to the company.
The write-off was a consequence of the results. Blink


And now serious : CCP just cleaned up their books. A lot of mismanagement and hot air got cleaned out.
It doesn't mean they actually spend that money. They just scrapped money that wasn't there anymore anyway.
Don't you just love bookkeeping. Big smile





Mithandra
B.O.P Supplication For Glorious
Dracarys.
#24 - 2014-09-08 07:50:10 UTC  |  Edited by: Mithandra
bacon lettuce tomato wrote:
I wouldn't me surprised if this websites 404'd tomorrow and never came back up. Most lemonade stands I've seen are managed better than CCP



And yet, after more than 10 years , the servers are still up and the hamsters are happy.

Eve is the dark haired, totally hot emo gothchild of the gaming community

Klyith
Republic Military School
Minmatar Republic
#25 - 2014-09-08 08:20:02 UTC
Slicr wrote:

I can see numbers being made up, but numbers being stupid?

I've always hated 9. It's just an upside down 6! X F off, nine, you're a stupid number.


OTOH 4 is the most underrated number. It doesn't get any hype, but four is cool with just sitting back and being the first square number. Very classy. More people should be down with 4.
Amarr Citizen 1312151005
Royal Amarr Institute
Amarr Empire
#26 - 2014-09-08 10:31:20 UTC
Jarod Garamonde wrote:
Morganta wrote:
there appear to be reports circulating stating a new game has been scraped and in the last 18 months eve lost 44 million bucks on R&D yet only makes about 6 million or less a year???

is there an existing discussion about this? is there official news?
what got scrapped?
should I just "not worry, it will be all right?"

is this just propaganda from the RSI people?



Your numbers are made-up and stupid. Your rumor-mongering deserves a lock.
Contract all your stuff to me, and biomass your toons.

http://www.gamesindustry.biz/articles/2014-04-15-ccp-drops-into-red-losing-USD21m-in-fy-2013

They spent 40 Million In R&D. So his numbers have some factual backing.
Stop being a CCP fan boy and getting mad when someone says something mean about "your game"

I know you live and breath EVE but I could never understand why people take it as a personal attack when someone says something bad about EVE.

https://www.ccpgames.com/media/47381/ccp%20financial%20statements%20june%2030%202013.pdf

CCP does not make much profit at the end of the day so even a loss of 23M is a huge deal.
and even after all the lay offs they were still in the RED.

Red means they had to spend money out of pocket to run the business for that year.


Do some damn research so someone else doesn't have to do it just to make you look like the idiot you are.
Mike Adoulin
Happys Happy Hamster Hunting Club
#27 - 2014-09-08 10:36:46 UTC
Don't worry, when EVE dies we can all go play Elite Dangerous multiplayer....

Also, posting in a stealth Goon troll thread....:)

grrr goons!!!

Cool

Everything in EVE is a trap.

And if it isn't, it's your job to make it a trap...:)

You want to know what immorality in EVE Online looks like? Look no further than Ripard "Jester" Teg.

Chribba is the Chuck Norris of EVE.

Destination SkillQueue
Doomheim
#28 - 2014-09-08 10:46:15 UTC
Amarr Citizen 1312151005 wrote:
Jarod Garamonde wrote:
Morganta wrote:
there appear to be reports circulating stating a new game has been scraped and in the last 18 months eve lost 44 million bucks on R&D yet only makes about 6 million or less a year???

is there an existing discussion about this? is there official news?
what got scrapped?
should I just "not worry, it will be all right?"

is this just propaganda from the RSI people?



Your numbers are made-up and stupid. Your rumor-mongering deserves a lock.
Contract all your stuff to me, and biomass your toons.

http://www.gamesindustry.biz/articles/2014-04-15-ccp-drops-into-red-losing-USD21m-in-fy-2013

They spent 40 Million In R&D. So his numbers have some factual backing.
Stop being a CCP fan boy and getting mad when someone says something mean about "your game"

I know you live and breath EVE but I could never understand why people take it as a personal attack when someone says something bad about EVE.

https://www.ccpgames.com/media/47381/ccp%20financial%20statements%20june%2030%202013.pdf

CCP does not make much profit at the end of the day so even a loss of 23M is a huge deal.
and even after all the lay offs they were still in the RED.

Red means they had to spend money out of pocket to run the business for that year.


Do some damn research so someone else doesn't have to do it just to make you look like the idiot you are.

You do realize they actually didn't spend or lose that money that year. What they did was scrap projects, that were a drain on their resources and marked the estimated value of those investments as a negative, since they weren't going to produce a profit. This reduces their expenses, their income stream didn't plummet and they get to put a big negative number on their balance sheet, which probably just allows them to reduce the amount of taxes they have to pay. So a stable amount of money still coming in and a reduction in expenses. All of it puts CCP in a much better position financially then they used to be.
Spurty
#29 - 2014-09-08 10:59:12 UTC
Destination skill queue with the best answer in my mind

EVE is broken but we carry on paying and playing as we know they have the talent to fix it.

As with all good love affairs, the the good times will outshine the bad.

There are good ships,

And wood ships,

And ships that sail the sea

But the best ships are Spaceships

Built by CCP

Derrick Miles
Death Rabbit Ky Oneida
#30 - 2014-09-08 11:16:29 UTC
I'm guessing you're referring to this financial statement, and mangling the facts horribly.

CCP spent 56.6 million in R&D last year and so their total loss for the year was 21.3 million. That was 40 million more in R&D than the year before, so if they had spent the same as last year on R&D, how much would they have made this year?

And for the record, spending money on R&D is not 'losing' money. It is important for any company to continue to expand and diversify in products and technologies. Even if their bid into World of Darkness didn't work, there are no guarantees in the game development business and rolling the dice in the first place is what counts. You'll notice that it hasn't stopped them from getting right back up and giving it another go with Valkyrie.
Charax Bouclier
Silvershield Universal
#31 - 2014-09-08 13:41:37 UTC  |  Edited by: Charax Bouclier
Derrick Miles wrote:
I'm guessing you're referring to this financial statement, and mangling the facts horribly.

CCP spent 56.6 million in R&D last year and so their total loss for the year was 21.3 million. That was 40 million more in R&D than the year before, so if they had spent the same as last year on R&D, how much would they have made this year?

And for the record, spending money on R&D is not 'losing' money. It is important for any company to continue to expand and diversify in products and technologies. Even if their bid into World of Darkness didn't work, there are no guarantees in the game development business and rolling the dice in the first place is what counts. You'll notice that it hasn't stopped them from getting right back up and giving it another go with Valkyrie.


Yep.

CCP still has 67M of development costs sitting on the balance sheet as asset. If a project doesn't work out, they write off that asset as an expense (like what they just did), which is why you saw that blip.

If they were writing off all their development costs, THEN you might be concerned, but hopefully so,e of their projects WILL hit, generating some solid long-term profitability. It's expected that you will see some write-offs in the interim when they cancel stuff they are working on. Better to fail sooner and write it off than to keep throwing cash at it.

Basically, this isn't much of a story except for people who cannot read financial statements and fixate on a non-cash flow bottom line loss number. I guess there are a few trolls who revel in the "sky is falling" mantra.

Edit: Just to give you guys some perspective:

Cash flow from operations: $23.1M
Cash spent on development: $26.6M
Cash spent on financing (largely repayments): $2.6M

If the company flat out stopped development on new projects, they'd be bringing in a nice chunk of cash each year.
Jarod Garamonde
Jolly Codgers
Get Off My Lawn
#32 - 2014-09-08 14:43:14 UTC  |  Edited by: Jarod Garamonde
Amarr Citizen 1312151005 wrote:

http://www.gamesindustry.biz/articles/2014-04-15-ccp-drops-into-red-losing-USD21m-in-fy-2013

They spent 40 Million In R&D. So his numbers have some factual backing.

"spent" is totally different from "lost". And that number is still highly exaggerated. It's not my fault his reading comprehension is bad.
(Note: that written-off amount was accrued over the course of 5 years. Comprehension is your friend)

Quote:
Stop being a CCP fan boy and getting mad when someone says something mean about "your game"

I'm not "fanboy'ing", I'm correcting willfully stupid misinformation. You should see me when someone says "vaccines cause autism".... it's a thousand times worse.

Quote:
I know you live and breath EVE but I could never understand why people take it as a personal attack when someone says something bad about EVE.

Actually, I spend more time wrenching on my project car and going to college than I do on EVE. So, insult fail.

Quote:
https://www.ccpgames.com/media/47381/ccp%20financial%20statements%20june%2030%202013.pdf

CCP does not make much profit at the end of the day so even a loss of 23M is a huge deal.
and even after all the lay offs they were still in the RED.

Red means they had to spend money out of pocket to run the business for that year.

Are you an accountant? Furthermore, are you CCP's accountant? What are your qualifications to determine all of this? Right now, you sound like you just want to stir up a panic, which is what even makes me pissy to begin with. Stop rabble-rousing and either play the damn game, or leave.

Quote:
Do some damn research so someone else doesn't have to do it just to make you look like the idiot you are.

My research begins and ends with "subscription numbers are up and I can still log into the game". What more do I need to know?
You mouthbreathers have been saying "EVE is dying" for 11 1/2 years, and it's going nowhere but up (except the Summer of Rage hiccup). So, kindly sit down, shut up, and leave the rest of us alone.

(PS: reading conjecture-ridden biased blogs writ by basement-dwelling neckbeards who end their "journalism" entries with "#GamerGate", isn't research. That's called the rumor mill)

That moment when you realize the crazy lady with all the cats was right...

    [#savethelance]
Arla Sarain
#33 - 2014-09-08 14:48:53 UTC
WIS is coming!
Persifonne
The Scope
Gallente Federation
#34 - 2014-11-29 06:02:26 UTC  |  Edited by: Persifonne
.
Cristl
#35 - 2014-11-29 06:07:30 UTC
It lives again!
Herzog Wolfhammer
Sigma Special Tactics Group
#36 - 2014-11-29 07:56:24 UTC
There are only two things that rise from the dead.

And threads are one of them.

Bring back DEEEEP Space!

Persifonne
The Scope
Gallente Federation
#37 - 2014-11-29 07:58:10 UTC
It was accident. Mistake. Mishap. Error
Akrasjel Lanate
Immemorial Coalescence Administration
Immemorial Coalescence
#38 - 2014-11-29 08:40:17 UTC
Lost or maby invested in R&D

CEO of Lanate Industries

Citizen of Solitude

Tarpedo
Incursionista
#39 - 2014-11-29 08:51:13 UTC
Don't worry - literally every feature of EVE can be found in other spaceship MMO games now, often with higher quality. Except for territorial warfare - which isn't that much different from PvE grind.

Another reason not to worry - shutdown of WoD and Dust development has resulted in reanimation of EVE development.
Gully Alex Foyle
The Scope
Gallente Federation
#40 - 2014-11-29 08:53:49 UTC
Don Aubaris wrote:
And now serious : CCP just cleaned up their books. A lot of mismanagement and hot air got cleaned out.
It doesn't mean they actually spend that money. They just scrapped money that wasn't there anymore anyway.
Don't you just love bookkeeping. Big smile
Basically, this.

Looking at the balance sheets from the outside, the impression is that CCP for the last years have made lots of money from EVE and spent it on other projects (WoD, Dust, etc.).

But WoD has been scrapped and Dust probably isn't making much money at the moment.


So, from the shareholders' point of view, they wasted money. That can happen to any company that is taking risks on new projects, especially in these troubled economic times. Only a high-level insider can know if, in CCP's case, it was more bad luck or bad management, or both.

OTOH, a large proportion of that money went to paying devs, so from the devs' point of view, it was money well spent while it lasted. Blink

Make space glamorous! Is EVE dying or not? Ask the EVE-O Death-o-meter!

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