Comment by 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.

Still, making only 32k PLN ($9k) profit on 137M PLN ($38M) revenue seems like a really badly operated business.

  • Profit is not an appropriate measure of how well a business is operated. I'm sure they have been prioritizing growth because the whole point of the platform is to introduce competition to Steam. Keeping the margins low (or even negative) is smart when the primary goal is not to make profit but to insure the parent company against monopolistic behavior.

  • A counterpoint is Amazon's profit on revenue until 2017 or so.

    • Amazon was basically conducting a price war founded by AWS division. Unless GOG is trying to undercut Steam this is a bit apples and oranges.