2021 GGG profit = 45 mil NZD (31 mil USD) after taxes.

"

Aldora_the_Summoner wrote:

Glad to see someone else pick up on that.

The big take aways that I can see is:

They made a significant profit - yay.
They have a heap of cash on hand - interesting.
Their profit declined by a bit more than 20% in comparison to the previous year - that's not a pleasing metric.

My big conclusion from this is: there's absolutely no reason they couldn't put on a number of additional resources to apply the QOL features desperately need, to add more people to the QA team to stop these stupid bugs that keep getting through or to otherwise improve the performance of the game.

I assume last year leagues are 3.13-3.16? If so then 3.13 and 3.14 should do great financially. Meanwhile the tanking profit number should happen between 3.15 and 3.16, especially 3.15.

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Shagsbeard wrote:

No one is "wrong". I'm saying that they should base their calcs on revenues and they did. The only mistake I see is that people are assuming that 100% of the revenue comes from players. We don't know that.

Ofc it doesn’t all come from players. They have a Steam rights agreement. However, that agreement also gives Steam a portion of revenue. They also have console agreements.

But, there are two MAJOR things to consider: Poe will not renew its Steam and console contracts if they aren’t more profitable than not having them, and Steam/consoles wouldn’t host Poe if it wasn’t more profitable than their contracts.

In other words, the money in play on Poe is actually larger than what GGG reports, and the amount surplus exceeds the contractual costs. Players are paying this.

Something worth mentioning: POE’s last top tier supporter pack was $480, so it’s very likely Less players are paying than last year. I did. I’m a sucker for my dead end of a cockroach game that’s impossible to kill.

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brunowa wrote:

Amazing that they make $100million a year.

Chris has mentioned that there are about 2 million active players. So that means every person spends about $50 a year on average which is pretty good.

The problem is that in normal accounting parlance "make" typically refers to profit and not revenue. GGG sold 94 million in MTX etc. to players. The company made 49 million in profit. The calculation of 100/2 = 50 is correct. The choice of using "made" is less precise. "Made" is not a formal accounting term on the income statement, but it is associated with profit rather than sales. Accounting tries to use specific words to avoid confusion and to be precise. Shags was calling attention to that.

use gross or net to be unambigious

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Networm13 wrote:

"

Aldora_the_Summoner wrote:

Glad to see someone else pick up on that.

The big take aways that I can see is:

They made a significant profit - yay.
They have a heap of cash on hand - interesting.
Their profit declined by a bit more than 20% in comparison to the previous year - that's not a pleasing metric.

My big conclusion from this is: there's absolutely no reason they couldn't put on a number of additional resources to apply the QOL features desperately need, to add more people to the QA team to stop these stupid bugs that keep getting through or to otherwise improve the performance of the game.

I assume last year leagues are 3.13-3.16? If so then 3.13 and 3.14 should do great financially. Meanwhile the tanking profit number should happen between 3.15 and 3.16, especially 3.15.

Did you miss the fact the highest supporter package is up $120? They will still make the same.

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rekikyo wrote:

But, there are two MAJOR things to consider: Poe will not renew its Steam and console contracts if they aren’t more profitable than not having them, and Steam/consoles wouldn’t host Poe if it wasn’t more profitable than their contracts.

I've never heard of a single case where Steam pulled a game off the shelf because it wasn't "more profitable than their contracts". That statement alone doesn't even make sense. The prediction that self-proclaimed master accountants will take over this thread was correct.

"

RandallPOE wrote:

"

Phrazz wrote:

This can't be right. PoE has allegedly been dying for years. Lost Ark and Elden ring were allegedly the nails in the coffin that finally killed PoE. How can they make money on an allegedly dead game that no one cares about?

I don't understand.

Don't worry I'm sure team Well Ackshually will be along shortly to set you straight.

:)))

This is the clear winner of the thread, we can all go home now :D

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MagicalHacker wrote:

"

rekikyo wrote:

But, there are two MAJOR things to consider: Poe will not renew its Steam and console contracts if they aren’t more profitable than not having them, and Steam/consoles wouldn’t host Poe if it wasn’t more profitable than their contracts.

I've never heard of a single case where Steam pulled a game off the shelf because it wasn't profitable enough. The prediction that self-proclaimed master accountants will take over this thread was correct.

You do realize that threshold isn’t very high? Most publishing contracts only ask either a fixed small amount or a % of direct revenue from reporting of about a 5% commission. All Steam and console Poe are responsible for is download portals. They don’t even directly host the game. Their overhead is cheap.

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rekikyo wrote:

You do realize that threshold isn’t very high? Most publishing contracts only ask either a fixed small amount or a % of direct revenue from reporting of about a 5% commission. All Steam and console Poe are responsible for is download portals. They don’t even directly host the game. Their overhead is cheap.

What I realize is that you're throwing around generalizing statements without pointing to actual Steam contracts that would back you up on that.

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MagicalHacker wrote:

"

rekikyo wrote:

You do realize that threshold isn’t very high? Most publishing contracts only ask either a fixed small amount or a % of direct revenue from reporting of about a 5% commission. All Steam and console Poe are responsible for is download portals. They don’t even directly host the game. Their overhead is cheap.

What I realize is that you're throwing around generalizing statements without pointing to actual Steam contracts that would back you up on that.

Neither you nor I have access to those, and you know it. The only thing we can do is research the general practice. That IS generally accessible.