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Comment by apetresc

1 day ago

I'm not sure I understand your figures. What is "32 thousand PLN", surely their entire annual profit for all of 2024 was not literally 32K PLN (approx. 9K USD)? Is this measured in millions? And whatever they're measured in, surely 32K to 910K in the span of a year is considered excellent progress?

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apetresc

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Ekaros  1 day ago

No it was actually just circa 9 thousand Euros from GOG.COM. And it seems there was period of having potential loss of million PLN as well in Q3 of 2024 I think. So it looks quite variable based on which products release.

See: https://www.cdprojekt.com/en/wp-content/uploads-en/2025/11/c...

Starting from page 28.

  • araes  18 hours ago

    Cost of Sales is eating them alive.

    They lose ~72% of every PLN/EUR/USD they bring in. Their financial statement is Really confusingly laid out. However, pg 36 has comparison. GOG is actually not THAT tiny of a segment (percentage-wise, absolute EUR / PLN numbers are still small). 49k PLN / 300k PLN for the CD PROJEKT Red and 350k total.

    Compared to CD PROJEKT RED, insanely horrible cost of sales ratio.

    July 1st, 2025 to Sept. 30th, 2025 (Numbers are in PLN, directly from document)

                     CD PROJEKT RED     GOG.COM
  Sales revenue         303,133      48,982
  Cost of sales          23,310      35,151

    January 1st, 2025 to Sept. 30th, 2025 (Numbers are in PLN, directly from document)

                     CD PROJEKT RED     GOG.COM
  Sales revenue         658,575     143,285
  Cost of sales          61,307     103,075

    PLN numbers can be verified (GOG quarterly is really on the order of 10,000 EUR) by looking at pages 30-31 with export sales summaries.

    For comparison to the 72% ratio, their main video game creation business spends 7-8% on cost of sales.

    From page 8 "Selling expenses represents costs of marketing activities relating to the GOG.COM platform and the work on the development and processing of sales executed through that platform."

    From some of the rest of the document, it seems like "maybe" some of that is prepayments and costs related to providing the software.

    Personal view, while it may be beneficial to not have to deal with GOG from an operational perspective, a significant percentage of sales are on the platform for their own software, and CD PROJEKT's title releases heavily influence sales figures on GOG, so it may end up limiting themselves from an otherwise beneficial distribution channel. Probably provides better negotiating position also if you're trying to barter with Nintendo, Sony, Microsoft, Valve, ect... However, if the partnership continues with the next owners, may not be an issue.

  • bcye  1 day ago

    Maybe they are just heavily reinvesting?

    • Ekaros  1 day ago

      I think reality is that being game retailer is harsh market if you are anyone else but Valve with Steam. Selling copies redeemed on Steam is workable, but seeing that pretty much all big publishers are back on Steam should tell a lot of state of the market. And GOG has bigger mind share than actual market share.

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