CD Projekt to restructure GOG team in wake of $2.2 million losses, focusing on its DRM-free philosophy
CD Projekt has shared its plans for GOG’s future in the wake of the store’s net losses. The company wants to restructure a division, moving some of its employees to the game development team. GOG’s concept will also go back to the roots, focusing on offering DRM-free games.
The company’s CFO Piotr Nielubowicz opened up on the subject, answering investors’ questions during an earnings call.
- GOG reported a net loss of PLN 9.21 million ($2.23 million) during Q3 2021 (ended September 2021). In the third quarter of 2020, the store had a net profit of PLN 5.7 million ($1.38 million).
- CD Projekt will focus on GOG’s core business activity, which means selling a handpicked selection of DRM-free titles. This also implies changes in the team’s structure, with some of its developers moving to CD Projekt RED.
- By the end of this year, the company will finally lift the consortium between GOG and card game GWENT. It means that the expenses and income of these two divisions will be separated and will not affect each other.
- Nielubowicz noted that this decision will improve GOG’s financial effectiveness in 2022. GWENT’s entire operations will be done solely by CD Projekt RED, which will allow the GOG team to focus on its core activities.
- In its financial report, the company also said that the GOG team continues to negotiate with developers and publishers, gradually expanding its partner base.
CD Projekt reported total revenue of PLN 144.46 million ($35 million), which is up 38.2% year-over-year. The company is now getting ready for the launch of Cyberpunk 2077’s next-gen versions, as well as shifting towards a parallel development of two AAA games based on its main franchises.