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Khamal Jolstien
Caldari
Sick Tight
BricK sQuAD.
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Posted - 2011.06.27 19:31:00 -
[1]
 Originally by: Yarrrrrhh
Edited by: Yarrrrrhh on 27/06/2011 19:28:48
Disclaimer: I am not an accountant, I'm just passing on information. Please read with caution and double check things stated here yourself. No guarantee on this being correct at all.
Someone got their hands on the latest annual report of CCP. You can check it out yourself here.
CCP is a profitable company but it looks like it is having some cash flow problems because development costs for Dust and WoD are high. You can read an analysis of their situation here.
They will have to repay a large loan later this year which will require most of their cash assets therefore they'd have to take another loan or sell parts of their company. For that to be feasible though CCP has to show that it's making a profit and apparently they're trying to use MT to make their cash flow problem look less serious.
Which explains pretty much everything that CCP has done, said and hinted at so far.
TL;DR
Dust and WoD are burning too much of CCPs cash and therefore they need to at least show that MT can work in EVE so they can get their hands on fresh cash from loans/equity deals.
Simple solution:
Cancel DUST and WoT, or outsource/license development to competent studios for these products and become a developer/publisher.
Originally by: McKinlay
When you get on the batphone and the only people left in the phone book are Aeternus and BLAST it might be time to hang up.
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Khamal Jolstien
Caldari
Sick Tight
BricK sQuAD.
|
Posted - 2011.06.27 19:37:00 -
[2]
Originally by: Yarrrrrhh
Originally by: Xinxua
Originally by: Yarrrrrhh
Originally by: Lug Thorne
So really their short term financial future depends on keeping Eve going?
After jeopardizing it with WoD and Dust. That's how it looks to me.
Yes sticking to one product line and not expanding into new markets is the best way to expand your company.
Not sure if serious but: why did they have to start TWO new insanely big development projects at the same time?
I called this a long time ago. One project during the production phase has an extremely expensive burn rate. Having two, on top of EVE, is an exercise in sheer stupidity. Either someone didn't know what they're doing despite their 10 years of doing this (chuckle), or someone had the hubris to think they could do it better than everyone else in the industry.
Originally by: McKinlay
When you get on the batphone and the only people left in the phone book are Aeternus and BLAST it might be time to hang up.
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Khamal Jolstien
Caldari
Sick Tight
BricK sQuAD.
|
Posted - 2011.06.27 19:44:00 -
[3]
Originally by: Saving Face
Originally by: Khamal Jolstien
Cancel DUST and WoT, or outsource/license development to competent studios for these products and become a developer/publisher.
No. If they cancel them they have to write them off, remember all the code they wrote is in the balance sheet as capitalized expenses.
So? I'm no accounting genius, but if these things are dragging you down, there's always the option to cut your losses and focus on what's working.
Outsourcing/licensing these projects would also work, since the development work isn't wasted, but they don't have to take the full risk on it tanking.
Either way you look at it, a one time loss as the game is canceled and the work is written off is a hell of a lot better than recurring losses on top of a game that they have no experience in making.
Originally by: McKinlay
When you get on the batphone and the only people left in the phone book are Aeternus and BLAST it might be time to hang up.
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Khamal Jolstien
Caldari
Sick Tight
BricK sQuAD.
|
Posted - 2011.06.27 19:51:00 -
[4]
Originally by: Alice Katsuko
To be honest, I'd pay a higher monthly fee if it meant keeping this game afloat, and especially if it meant we wouldn't have to deal with pay to win items being sold for PLEX.
They'll do the higher fees. Wait for the rage to die down, and then quietly start reintroducing pay to win.
Originally by: McKinlay
When you get on the batphone and the only people left in the phone book are Aeternus and BLAST it might be time to hang up.
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Khamal Jolstien
Caldari
Sick Tight
BricK sQuAD.
|
Posted - 2011.06.27 20:36:00 -
[5]
Originally by: moneykeeper
Cry me a river. If CCP wanted my cash they should have made the game better instead of making a shop to sell pants. There are many better charities than a failing game making corporation.
Exactly. CCP needs to remember this. They are a business, and simply because they need to l2p doesn't mean we should put up with their crap.
Smart businesses make good use of existing products and grow them, expand them, and build upon them. All of these are based upon customers, and if they do something that drives off the customers then they are lost.
Originally by: McKinlay
When you get on the batphone and the only people left in the phone book are Aeternus and BLAST it might be time to hang up.
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