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Decline in numbers... starting to turn into RAPID!!!

First post
Author
Remiel Pollard
Aliastra
Gallente Federation
#3141 - 2015-12-29 01:17:14 UTC  |  Edited by: Remiel Pollard
Tyberius Franklin wrote:
Remiel Pollard wrote:
You tried to claim they are losing money. Tell me, how much money have they lost? If the report shows a profit, regardless of any reduction in profit from previous years, then it only shows a net gain. Who's twisting?

And 'some punk'? Really? Grow up.
As someone who doesn't understand the reports but can get a gist of the numbers and description meanings can I ask you to explain?

You said "A reduction in net profit margin does not mean they are not making a profit." but the -49% referred to looks like simply the yearly income - operating costs, not a comparison to year over year profits. I read it as a direct operating loss. Am I misreading that?



The number that matters is the one at the top, EVE subscriptions. It's in a good place. Any profit loss or gain at the bottom has to take a number of other factors into consideration, including how much CCP spent on R&D, which was substantial. Even if they lost money in 2014 though, subscriptions were healthy. Very healthy.

The only reason that is ever posted is to show that "EVE is dying" because CCP is losing money. Well, all it does is prove that lots of people are still subscribed to EVE and love it, and that it's as healthy now, if not healthier, as when CCP was making a profit. What CCP chooses to do with their money as a result of that is up to them as a company, and given their previous huge profits, even a net loss of 49% wouldn't hurt their reserves accumulated from previous profits.

Operating profit margin, though, is not net profit. And it's the operating profit of CCP as a whole, including R&D costs put into other games, not an indicator of the health of EVE Online.

For the record, this is an edited financial statement on a personal blog with no citation to the original. Let that sink in a moment as well. But if we're going by that financial statement as accurate, all it says is if CCP goes under, it'll be because of Dust and Valkyrie, not EVE.

“Some capsuleers claim that ECM is 'dishonorable' and 'unfair'. Jam those ones first, and kill them last.” - Jirai 'Fatal' Laitanen, Pithum Nullifier Training Manual c. YC104

Tyberius Franklin
Federal Navy Academy
Gallente Federation
#3142 - 2015-12-29 01:28:44 UTC
Remiel Pollard wrote:
The number that matters is the one at the top, EVE subscriptions. It's in a good place. Any profit loss or gain at the bottom has to take a number of other factors into consideration, including how much CCP spent on R&D, which was substantial. Even if they lost money in 2014 though, subscriptions were healthy. Very healthy.

The only reason that is ever posted is to show that "EVE is dying" because CCP is losing money. Well, all it does is prove that lots of people are still subscribed to EVE and love it. What CCP chooses to do with their money as a result of that is up to them as a company, and given their previous huge profits, even a net loss of 49% wouldn't hurt their reserves accumulated from previous profits.

Operating profit margin, though, is not net profit. And it's the operating profit of CCP as a whole, including R&D costs put into other games, not an indicator of the health of EVE Online.

For the record, this is an edited financial statement on a personal blog with no citation to the original. Let that sink in a moment as well.
I agree with the statement of the top number being particularly important for the health of the game, I was just curious about the idea of a specific profit being turned in 2014. I can certainly see that not being the case with the official cancellation of WOD and the development of other projects during that timeframe.

We all know a lot happened that year making it atypical and that the full financials are not indicative of just operating Eve alone and judging its health (the huge contrast in R&D expenses pre-2013 with 2013 and 2014 make that obvious). I was more just curious about that one point regarding that specific number meaning yearly profits vs a net profit change.
Remiel Pollard
Aliastra
Gallente Federation
#3143 - 2015-12-29 01:33:22 UTC  |  Edited by: Remiel Pollard
Quote:
I agree with the statement of the top number being particularly important for the health of the game, I was just curious about the idea of a specific profit being turned in 2014. I can certainly see that not being the case with the official cancellation of WOD and the development of other projects during that timeframe.

We all know a lot happened that year making it atypical and that the full financials are not indicative of just operating Eve alone and judging its health (the huge contrast in R&D expenses pre-2013 with 2013 and 2014 make that obvious). I was more just curious about that one point regarding that specific number meaning yearly profits vs a net profit change.


I've edited my post above with some elaboration on a few points.

I may be wrong about what I'm reading about CCP's profits, but they still don't mean EVE is struggling, and they also don't mean CCP is struggling. I've managed enough businesses to understand that a loss in profit says nothing to the health of the business overall. Could just mean we had a slow month.

Additionally, I cannot emphasise this enough and I know you're already aware, but this figure he's using to speak to the health of the game says nothing to the health of the game. In 2009, EVE subs were 51,782.4, while operating profit was positive. 2014, EVE was even stronger with negative operating profit. If the two are directly associated, then that means CCP is losing money with MORE subscriptions? No, he can get out with that nonsense.

If CCP is losing money, it's because they're investing in new games. That's the cost of doing business, you spend money to make money.

“Some capsuleers claim that ECM is 'dishonorable' and 'unfair'. Jam those ones first, and kill them last.” - Jirai 'Fatal' Laitanen, Pithum Nullifier Training Manual c. YC104

Mr Epeen
It's All About Me
#3144 - 2015-12-29 01:51:22 UTC
Remiel Pollard wrote:
I may be wrong about what I'm reading about CCP's profits,
It's been a while since you and I were on the same page about something.

Mr Epeen Cool
Jill Xelitras
Xeltec services
#3145 - 2015-12-29 01:53:02 UTC
Indahmawar Fazmarai wrote:
Ferrari only sells one product. It's not as if they were staying in business thanks to all the guys buying vans and trucks, which is much the case for CCP and EVE.


Ferrari is selling more than just sports cars. They make quite a lot from licensed products.

$ 1.5 billion in 2010 from licensed products (see link above) is not bad compared to what they make overall (PDF 2010 financial report FIAT see page 41 for Ferrari)

So basically Ferrari is making more money off of people who can't afford the cars, than it is from people buying their cars.

Don't anger the forum gods.

ISD Buldath:

> I Saw, I came, I Frowned, I locked, I posted, and I left.

Scipio Artelius
Weaponised Vegemite
Flying Dangerous
#3146 - 2015-12-29 01:57:08 UTC
Remiel Pollard wrote:
... CCP's profits, but they still don't mean EVE is struggling, and they also don't mean CCP is struggling. I've managed enough businesses to understand that a loss in profit says nothing to the health of the business overall. Could just mean we had a slow month.

In fairness to King Aires, he didn't say that Eve is struggling, but that CCP is losing money and subscribers at a faster rate than gaining them.

The second part of that statement is has been known for a while (to what extent is debatable as we don't have true subscription numbers). The first part I'm not sure currently.

He is right in saying that CCP have been on s certain path for a while and the effects have resulted in decline, at least in terms of PCU. Why is the thing we all argue about here and I doubt any of us have the one truth and that there's some truth in all of our views.

I'm not a doomsday predictor like others are in the thread and believe Eve is a great product (otherwise I wouldn't be here), so don't see Eve dying any time soon and not sure even that CCP are losing money (which would be a driving factor for business decisions), but change is going to happen. The direction of change is where we seem to have a huge chasm.

I'm firmly in the "make it more sandboxy and allow individuals to be responsible for their safety" camp rather than the "make it appeal to more people" camp, but I also think it's possible to do both, though I might just be a dreamer in that regard.
Scipio Artelius
Weaponised Vegemite
Flying Dangerous
#3147 - 2015-12-29 01:58:12 UTC  |  Edited by: Scipio Artelius
Mr Epeen wrote:
Remiel Pollard wrote:
I may be wrong about what I'm reading about CCP's profits,
It's been a while since you and I were on the same page about something.

Mr Epeen Cool

Then can you explain it in simple terms that CCP are losing money, based on everything in that data?
Mr Epeen
It's All About Me
#3148 - 2015-12-29 02:03:12 UTC
Scipio Artelius wrote:
Mr Epeen wrote:
Remiel Pollard wrote:
I may be wrong about what I'm reading about CCP's profits,
It's been a while since you and I were on the same page about something.

Mr Epeen Cool

Then can you explain it in simple terms that CCP are losing money, based on everything in that data?
Don't know...don't care.

But neither can anyone else other than the people who are involved with CCP financials. And you won't find any of them posting in GD.

Mr Epeen Cool
Scipio Artelius
Weaponised Vegemite
Flying Dangerous
#3149 - 2015-12-29 02:05:12 UTC
Mr Epeen wrote:
Scipio Artelius wrote:
Mr Epeen wrote:
Remiel Pollard wrote:
I may be wrong about what I'm reading about CCP's profits,
It's been a while since you and I were on the same page about something.

Mr Epeen Cool

Then can you explain it in simple terms that CCP are losing money, based on everything in that data?
Don't know...don't care.

But neither can anyone else other than the people who are involved with CCP financials. And you won't find any of them posting in GD.

Mr Epeen Cool

Ok, so nothing constructive then? Just the typical snipe at someone for no purpose other than feeling elite about yourself.

Fair enough.
Remiel Pollard
Aliastra
Gallente Federation
#3150 - 2015-12-29 02:05:50 UTC  |  Edited by: Remiel Pollard
Mr Epeen wrote:
Remiel Pollard wrote:
I may be wrong about what I'm reading about CCP's profits,
It's been a while since you and I were on the same page about something.

Mr Epeen Cool


I can't help you with your personal problems or your inability to display an ounce of impartiality or contribute anything constructive ever.

Intellectual honesty would be acknowledging when someone is capable of deferring to and admitting their own errors. You, of course, demonstrate the exact opposite with such consistency that anyone with a modicum of critical faculty is going to struggle to take you seriously. Who even are you? You never ever post with anything but this troll toon that appears to have accomplished nothing in and contributed nothing to EVE except a few snarky comments on the forums that mean literally nothing to anyone but you.

So why are you here? Forget it. Every time you post something antagonistic and unconstructive, I'll just report it. Good day.

“Some capsuleers claim that ECM is 'dishonorable' and 'unfair'. Jam those ones first, and kill them last.” - Jirai 'Fatal' Laitanen, Pithum Nullifier Training Manual c. YC104

Remiel Pollard
Aliastra
Gallente Federation
#3151 - 2015-12-29 02:06:38 UTC  |  Edited by: Remiel Pollard
Scipio Artelius wrote:
Remiel Pollard wrote:
... CCP's profits, but they still don't mean EVE is struggling, and they also don't mean CCP is struggling. I've managed enough businesses to understand that a loss in profit says nothing to the health of the business overall. Could just mean we had a slow month.

In fairness to King Aires, he didn't say that Eve is struggling, but that CCP is losing money and subscribers at a faster rate than gaining them.

The second part of that statement is has been known for a while (to what extent is debatable as we don't have true subscription numbers). The first part I'm not sure currently.

He is right in saying that CCP have been on s certain path for a while and the effects have resulted in decline, at least in terms of PCU. Why is the thing we all argue about here and I doubt any of us have the one truth and that there's some truth in all of our views.

I'm not a doomsday predictor like others are in the thread and believe Eve is a great product (otherwise I wouldn't be here), so don't see Eve dying any time soon and not sure even that CCP are losing money (which would be a driving factor for business decisions), but change is going to happen. The direction of change is where we seem to have a huge chasm.

I'm firmly in the "make it more sandboxy and allow individuals to be responsible for their safety" camp rather than the "make it appeal to more people" camp, but I also think it's possible to do both, though I might just be a dreamer in that regard.


Fair call. I'm certainly more used to seeing people post CCP financials as 'proof' that EVE is dying. Call it a knee-jerk on this one. My bad.

“Some capsuleers claim that ECM is 'dishonorable' and 'unfair'. Jam those ones first, and kill them last.” - Jirai 'Fatal' Laitanen, Pithum Nullifier Training Manual c. YC104

Scipio Artelius
Weaponised Vegemite
Flying Dangerous
#3152 - 2015-12-29 02:29:16 UTC  |  Edited by: Scipio Artelius
Remiel Pollard wrote:
Fair call. I'm certainly more used to seeing people post CCP financials as 'proof' that EVE is dying. Call it a knee-jerk on this one. My bad.

I don't think your wrong either in the follow up. When statements are made about CCP's financial position it's pretty widely acknowledged that it isn't Eve that has been losing money.

If money is lost its because CCP has taken risks in other development projects, which haven't worked out and the executive have then made the hard decisions that good executive management need to make.

Again, I may be more of an idealist, but while a company is prepared to take risks, it's a good sign. When they go conservative it's time to worry. Projects like WOD, now Valkyrie and more broadly the VR area, are a good sign to me about the health of CCP, whether they end up profitable or not. At least they show signs of moving forward, which sets a tone in a company and that will flow back into Eve (I think it already does).
Mr Epeen
It's All About Me
#3153 - 2015-12-29 02:48:48 UTC
Remiel Pollard wrote:

Every time you post something antagonistic and unconstructive, I'll just report it. Good day.
Sheesh. Reporting someone for agreeing with you? That's new.

Mr Epeen Cool
Remiel Pollard
Aliastra
Gallente Federation
#3154 - 2015-12-29 03:37:20 UTC
Mr Epeen wrote:
Remiel Pollard wrote:

Every time you post something antagonistic and unconstructive, I'll just report it. Good day.
Sheesh. Reporting someone for agreeing with you? That's new.

Mr Epeen Cool


For unconstructive passive-aggressive antagonistic and snarky trolling. Don't play coy with me, I know believing I'm stupid gets you stiff but you're not just transparent, you're like a lense magnifying your own snarkiness.

“Some capsuleers claim that ECM is 'dishonorable' and 'unfair'. Jam those ones first, and kill them last.” - Jirai 'Fatal' Laitanen, Pithum Nullifier Training Manual c. YC104

Indahmawar Fazmarai
#3155 - 2015-12-29 07:55:03 UTC
Concerning CCP's financials, 2014 was an atypical year since they derecognized WoD and that made a -22 million $ hit in their financials. As for 2015, we know that they spent an estimate of 16 million dollars to buy back their bonds, which has removed the need to reelase their financial statements. Also we know that CCP has obtained 30 million dollars to develop VR projects of which we know very little beyond some prototypes shown at Fanfest and Vegas.

Depending on how VR pans out, CCP's prospects in the short and middle term look in a range going from "fine enough" to "oh my God".

But that's because of VR products, not EVE; and so far, EVE still is the cash cow for everything else. I don't think that DUST 514 has paid itself back, no matter if 3,000 guys online pay for the operational cost so it is not losing money.
Lucas Kell
Solitude Trading
S.N.O.T.
#3156 - 2015-12-29 08:38:17 UTC
Remiel Pollard wrote:
When literally everything you say is wrong, and it's essay length, I'm not going to bother arguing.
If it's wrong, then it shouldn't be too hard to argue. You're actually bowing out because you disagree with my opinion and simply have no way to argue against it.

Remiel Pollard wrote:
Obvious to you =/= obvious to everyone. Intentions assumed are not obvious intentions, and without evidence, you are assuming. If something is obvious, then it should be really easy to provide a citation. 2+2=4 is obvious, for example. Intentions of CCP, without a statement to them, is not.
Obvious is obvious. If CCP has no intention of making money, why would people invest over 30 million in them? Why do they even exists as a business, and how do they pay their staff? Effectively if you're saying that CCP don't want to operate as a business to make money, the onus is on you to prove that. Ammusingly by pointing out their foray into microtrans, you pretty much proved the opposite.

Remiel Pollard wrote:
This game can be played casually, but it's not a casual game. Casual games don't require subscriptions, and don't require time and energy investment to get to endgame content, or where an endgame doesn't exist, the most high-end goals available. This game is functionally ideal for hobbyists, not casuals. Ease of gameplay does not a casual game make. Investment required is the key determining factor.
Casual games are games you can play casually and still accomplish a lot. In EVE, you can skill up without logging on, plex your account with less than 10 minutes effort a day and achieve nearly anything by simply paying people to do stuff for you. Like you say, investment required is the key determining factor, and EVE requires no real investment to succeed.

Remiel Pollard wrote:
Now please, carry on with your denial. I'll not be addressing it further in the assurance that CCP are big boys and girls and are wholly capable of ignoring your complete and utter stupid.
So incredibly mad Roll

The Indecisive Noob - EVE fan blog.

Wholesale Trading - The new bulk trading mailing list.

Kagura Nikon
Native Freshfood
Minmatar Republic
#3157 - 2015-12-29 08:48:42 UTC
King Aires wrote:
Scipio Artelius wrote:
King Aires wrote:
CCP is an extremely unknown company that has been losing money for a while ...

Do you have a source for this?

I'd be interested in reading it.


CCP Financials thru 2014

Even in a good year like 2014 they were operating at a -49% net profit margin.

They had negative cash flow most years, and started floating bonds for cash.

The two seats sold for the VR partnership with Valkyrie and the loans to take the company private again makes me a bit worried they are in deeper trouble than the Eve-Offline numbers would suggest.



good year? you take exactly the year publicly known for being a disaster and forcing them to close offices and fire people as example? Surely they are not the size of EA, but a company is not only the size.

"If brute force does not solve your problem....  then you are  surely not using enough!"

Lucas Kell
Solitude Trading
S.N.O.T.
#3158 - 2015-12-29 09:01:53 UTC
Remiel Pollard wrote:
I suggest you learn how to read financial reports. A reduction in net profit margin does not mean they are not making a profit.

Anyway, I just remembered this existed. Enjoy the read.
Wait a minute, you mean the community manager said something the community wants to hear? I'm shocked. At the end of the day if CCP said "hey falcon, what about if we stop paying you but you keep on working?" He'd be laughing his way out the door in a heartbeat. There's sentiment and then there's reality, and the reality is that few if any of the CCP employees would work for nothing but the joy of EVE.

Remiel Pollard wrote:
Additionally, I cannot emphasise this enough and I know you're already aware, but this figure he's using to speak to the health of the game says nothing to the health of the game. In 2009, EVE subs were 51,782.4, while operating profit was positive. 2014, EVE was even stronger with negative operating profit. If the two are directly associated, then that means CCP is losing money with MORE subscriptions? No, he can get out with that nonsense.
This can actually happen though. Business see it a lot, in fact Christmas is one of those times for shops, as they tend to make more sales but less margin because of sales. Same could be true of EVE, that they sell more subs but they have to pay more out to get them. The truth is though that without a better breakdown it will be difficult to see, but with CCP getting rid of a lot of staff, development in EVE slowing, user count dropping and a massive investment in Valkyrie, it's hard not to see that as a bad thing for EVE.

The Indecisive Noob - EVE fan blog.

Wholesale Trading - The new bulk trading mailing list.

Remiel Pollard
Aliastra
Gallente Federation
#3159 - 2015-12-29 09:29:48 UTC  |  Edited by: Remiel Pollard
Lucas, for future reference... I can see that you've posted and I know you're trying to address me but I have your posts hidden, and I won't be unhiding them. I don't know what you've said, and I don't care. In my experience, it's entirely irrelevant dribble anyway. Your propensity for denying simple facts and making assumptions that run completely contrary to easily available evidence, while denying the evidence using half-baked tin-foil exaggerations, is on par with a 9/11 "twoofer" and as such, I've become slightly more partial to sitting down and having a friendly coffee with Germany's greatest supervillain than ever having to mentally digest your hyperbolic diarrhea ever again.

“Some capsuleers claim that ECM is 'dishonorable' and 'unfair'. Jam those ones first, and kill them last.” - Jirai 'Fatal' Laitanen, Pithum Nullifier Training Manual c. YC104

Lucas Kell
Solitude Trading
S.N.O.T.
#3160 - 2015-12-29 10:05:24 UTC
Remiel Pollard wrote:
Lucas, for future reference... I can see that you've posted and I know you're trying to address me but I have your posts hidden, and I won't be unhiding them.
Good. Perhaps that means I won't have to put up with you firing ad hominems at me when you fail to make a point. At the same time I can continue to respond to your posts and both CCP and other players will continue to see them. That's a win-win to be honest.

Remiel Pollard wrote:
Your propensity for denying simple facts and making assumptions that run completely contrary to easily available evidence
So what you are saying is that when I say that EVE is shrinking, in terms of staff and players, that is contrary to the evidence which supports exactly what I'm saying? At the end of the day, people like you have your heads buried in the sand and you try to pretend everything is sunshine and roses. I'm more of a realist.

The Indecisive Noob - EVE fan blog.

Wholesale Trading - The new bulk trading mailing list.