CCP Games Fire Two Executives, Closes San Francisco Office

Update: A rep. for CCP Games informed us that CCP Games CFO Joe Gallo and CMO David Reid left the company voluntarily, and were not fired, as was previously reported.

Original Story: EVE Online maker CCP Games announced during its latest financial report that it is shutting down its San Francisco-based game development studio and letting two executives go. The news comes on the heels of the company reporting a downturn in year-over-year profits.

Revenues for the first six month period of its current fiscal year came in at $36.5 million, down from $36.7 million in the same six month period of its last fiscal year. Earnings (before interest, taxes and depreciation) clocked in at $4.5 million, down from $8.3 million in the same six month period a year ago.

The cancelation of the World of Darkness MMO affected the overall profitability of the company during the six month period due mostly to termination and write-down costs for certain assets associated with the property.

As a result, CCP Games decided that it would close its San Francisco operations and let CFO Joe Gallo and CMO David Reid go. CCP Games manager Hilmar Veigar Petursson said that the company's new focus going forward will be solely on its flagship product, EVE Online.

Source: Gamasutra

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  1. 0
    Thipp says:

    Releasing Dust 514 for PS3 only was a strange move, probably not the best choice they could have made. They are working on Project Legion which is a PC game similar to Dust and they are working on Valkyrie for PC and PS4 so they have at least two games in development (that have been announced). It is popular to hate on CCP and Eve but a failed project that had to be shut down years into development, a second released game and several more in development in addition to their main game that has been successful and continually updated for over 10 years does not sound like a developer that just half asses everything. 

  2. 0
    Sleaker says:

    Except it seems like most of their attempts have been half-assed. WoD was in dev for a long time looked decent, but never produced anything and was shut down.  Then they released dust for console only even though their main market was PC…  That's all they've done other than Eve. So one other released product.

  3. 0
    Neeneko says:

    Ahm, that is exactly what they have been trying to do and so far it has backfired on them.  All of their attempts to diversify or even appeal to new markets have gone pretty poorly while draining resources from their core development.

  4. 0
    Sleaker says:

    I have a great idea, lets pour all of our assets into a single game and never expand so we can slowly die off as a company. Yah that makes perfect sense.

    A better response would be that given recent issues with alternative IP we are going to focus on EVE for the short term while we work on a long term stability plan beyond our single product…

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