CD Projekt will restructure GOG amid losses. Part of the team will develop games

Against the background of GOG’s losses, CD Projekt shared its plans for the store’s future. The main task is to restructure in order to increase its financial stability. Some of the employees will be transferred to the game development team. GOG itself will no longer be financially dependent on other CD Projekt divisions and will continue to develop the concept of selling titles without DRM protection.CD Projekt told about this during a conversation with investors following the results of the third quarter (ended September 30).

Questions about GOG were answered by the financial director of the company, Peter Nelyubovich (Piotr Nielubowicz).

• In the third quarter, GOG suffered a net loss of 9.21 million Polish zloty ($2.23 million). For comparison, a year earlier, the store made a net profit of 5.7 million zlotys ($ 1.38 million).CD Projekt decided to gradually return to the roots and focus on a key element of the GOG business model – to provide customers with manually selected games without DRM protection.
• This approach involves changes in the structure of the team responsible for the store.
• Some of the developers who supported GOG’s online features will switch to CD Projekt RED.At the end of the year, the company will finally completely separate the store from its card game GWENT — both structures will be financially independent.
• This means that the expenses and incomes of these divisions will be accounted for separately, without affecting each other in any way.Nelyubovich noted that such a decision will increase the financial efficiency of GOG in 2022.
• CD Projekt RED will now be responsible for all GWENT operations, and the store’s team will focus on its core business.In the financial report, the company separately noted that the GOG team continues to negotiate with publishers and developers, gradually expanding the partner base.

GOG quarterly revenue (the surge in the fourth quarter of last year was caused by the release of Cyberpunk 2077)In total, CD Projekt earned 144.46 million Polish zlotys ($35 million) in the third quarter, which is 38.2% more in annual terms.

Now the company is actively supporting Cyberpunk 2077 and is preparing for the release of next-gen versions of the game. Other plans include preparing for the parallel development of two AAA titles for their franchises.