CCP Games Records FY13 Loss

CCP Games recorded a loss of over $21 million for financial year 2013, the company announced today. This is a major decline from a profit of $4.6 million in the previous year. Revenues for the company rose to $76.7 million from $56.3 million. So what caused the massive drop for 2013? According to CCP, a massively increased R&D budget. That budget climbed from $16.5 million in FY 2012 to $56.5 million in FY 2013. The costs are likely related to the development of Eve: Valkyrie, Eve Online, Dust, and costs related to the now cancelled World of Darkness MMO.

"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."

Source: GII

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  1. 0
    Neo_DrKefka says:

    Free2play is for dead games that couldn’t pass muster. Even though the hardcore minority love this game this game goes out of making impossible for a casual to play. Even their 1st person shooter was to complex to understand.

  2. 0
    Neeneko says:

    CCP is a good example of how diversification and growth is not always in a company`s best interests.  They did one thing well and had a stable market.  Reaching for the stars might end up really hurting them.

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