Join gaming leaders, alongside GamesBeat and Facebook Gaming, for their 2nd Annual GamesBeat & Facebook Gaming Summit | GamesBeat: Into the Metaverse 2 this upcoming January 25-27, 2022. Learn more about the event.
The cancellation of the World of Darkness has reversed CCP’s financial fortune — and then some.
In its latest financial presentation, the Icelandic developer reported a loss of over $21 million for the 2013 fiscal year, a stark contrast to its $4.6 million in profit in fiscal 2012. The main cause of the sudden dive is a drastically increased research and development expense year-over-year — from $16.5 million to $56.5 million. Some of this $40 million spike must be from development costs of its properties: the space sim Eve: Valkyrie (still in development), the massively multiplayer online game Eve Online, and the shooter Dust 514. But according to Gamesindustry.biz, analysts think most of it consists of lost value from World of Darkness, a vampire-themed massively multiplayer online game that CCP canceled yesterday.
All this happened despite revenue rising from $56.3 million in fiscal 2012 to $76.7 million in fiscal 2013.
The following statement from the full financial report provides evidence for this theory:
The 2nd Annual GamesBeat and Facebook Gaming Summit and GamesBeat: Into the Metaverse 2
January 25 – 27, 2022
“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. IAS 38 requires that such assets should be derecognized and removed from the balance sheet. The expenses related to the derecognized assets are presented as part of research and development expenses in the statement of comprehensive income.”
GamesBeatGamesBeat's creed when covering the game industry is "where passion meets business." What does this mean? We want to tell you how the news matters to you -- not just as a decision-maker at a game studio, but also as a fan of games. Whether you read our articles, listen to our podcasts, or watch our videos, GamesBeat will help you learn about the industry and enjoy engaging with it. How will you do that? Membership includes access to:
- Newsletters, such as DeanBeat
- The wonderful, educational, and fun speakers at our events
- Networking opportunities
- Special members-only interviews, chats, and "open office" events with GamesBeat staff
- Chatting with community members, GamesBeat staff, and other guests in our Discord
- And maybe even a fun prize or two
- Introductions to like-minded parties