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dex3108

Member
Oct 26, 2017
22,776
Amid a month full of mass layoffs across the video game industry, the digital store GOG quietly let go of what it says was a dozen staff last week. GOG, which is owned by The Witcher 3 developer CD Projekt Red, did not say why the layoffs happened, but one laid-off staffer tells Kotaku that the store has been in financial trouble.

In an official statement to Kotaku this afternoon, a representative for GOG confirmed the layoffs but did not offer much more clarification. "Letting people go is never easy," they said. "We have been rearranging certain teams since October 2018, effecting in closing around a dozen of positions last week. At the same time, since the process started we have welcomed nearly twice as many new team members, and currently hold 20 open positions."

"We were told it's a financial decision," that person told me in an online message. "GOG's revenue couldn't keep up with growth, the fact that we're dangerously close to being in the red has come up in the past few months, and the market's move towards higher [developer] revenue shares has, or will, affect the bottom line as well. I mean, it's just an odd situation, like things got really desperate really fast. I know that February was a really bad month, but January on the other hand was excellent. We were in the middle of a general restructuring, moving some teams around, not unprecedented. But layoffs that big have never happened before."

https://kotaku.com/facing-financial-pressures-gog-quietly-lays-off-at-lea-1832879826
 
Oct 29, 2017
4,515
UK
Sounds like GOG store might be in trouble. I mean I haven't really bought anything from them in a while, because I just tend to go to Steam.
 

Chacranajxy

Member
Oct 29, 2017
905
I'm not terribly surprised. Selection has just never been able to keep up, and it feels like they really shit the bed on that front last year. I haven't bought a game from there since August, and I used to be a huge supporter. Epic opening their store definitely doesn't help -- if you're a developer deciding to support an alternative storefront, why wouldn't you focus on Epic, where you get a better rev-share?
 

Instro

Member
Oct 25, 2017
15,107
Concerns me a bit for the storefront. There a ton of old games on there that can't be bought elsewhere.
 

Admiral Woofington

The Fallen
Oct 25, 2017
14,892
Why do the ysay "let go" when they got fired? It's not like they asked to leave the company
Laid off means you weren't fired and might get a financial package of some sort since you're being let go due to financial reasons.

Fired would imply you were doing a poor job. Under the eyes of the government in the US for getting unemployment benefits, being laid off makes a difference.
 

Kolx

Member
Oct 25, 2017
8,505
Hopefully everyone lands on their feet. With nothing successful to show for financially after TW3, I really hope we don't get a rushed Cyberpunk because GOG and Gwent failing is probably putting a lot of pressure on them.
 

Eolz

Banned
Oct 25, 2017
7,601
FR
Damn that sucks.
Both for the employees and for GOG. They're a good store, but didn't seem to find a bigger audience all while trying to expand at the same time.
 

Deleted member 48897

User requested account closure
Banned
Oct 22, 2018
13,623
And that's why you don't hire openly those gatery folks to run your social media accounts. I would be very surprised if that wasn't connected to their loss of revenue. Certainly I haven't bought anything from them since learning about that despite having a substantial wishlist.
 

GhostTrick

Member
Oct 25, 2017
11,408
I'm not terribly surprised. Selection has just never been able to keep up, and it feels like they really shit the bed on that front last year. I haven't bought a game from there since August, and I used to be a huge supporter. Epic opening their store definitely doesn't help -- if you're a developer deciding to support an alternative storefront, why wouldn't you focus on Epic, where you get a better rev-share?


Because selection as you said.

But yeah, people saying the 12% cut is sustainable. When I see that GOG with a 30% cut is struggling or that Itch.io is barely breaking even...
 

chrominance

Sky Van Gogh
Member
Oct 25, 2017
13,749
If it turns out that actually dropping below the 30% cut digital storefronts were getting isn't sustainable without Tencent-level backing or Steam-level monopolies, then we're probably going to see a lot more of this kind of thing.

That said, we don't know why GOG's revenue isn't keeping up with growth. I can't remember from the Noclip documentary on GOG if CD Projekt Red tapped some GOG resources to help with Gwent or The Witcher (I think it's the former, to help with store-related UI?) but Gwent's failure and any potential GOG expansion due to Gwent could've been an issue. Or maybe GOG Galaxy development is costing too much. Or maybe GOG's just been pushed too close to the red due to market factors that have always existed but are slowly getting worse (Steam market share, for example).

And that's why you don't hire openly those gatery folks to run your social media accounts. I would be very surprised if that wasn't connected to their loss of revenue. Certainly I haven't bought anything from them since learning about that despite having a substantial wishlist.

Though it might be nice to think that this is true, I very much doubt it. Play-Asia arguably did worse with their social media account and it doesn't seem to have affected their business at all.
 
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VX1

Member
Oct 28, 2017
7,002
Europe
"Given GOG's troubles and the poor sales of Gwent/Thronebreaker, I have to wonder if CD Projekt Red is feeling pressured to get out Cyberpunk as quickly as possible, no matter how much crunch it takes."

Yeah,this doesn't sound good at all....
 

Tovarisc

Member
Oct 25, 2017
24,498
FIN
And that's why you don't hire openly those gatery folks to run your social media accounts. I would be very surprised if that wasn't connected to their loss of revenue. Certainly I haven't bought anything from them since learning about that despite having a substantial wishlist.

Large majority of consumers don't care and extremely unlikely those social media fucks up have anything to do with GOG's financial situation.
 

kubev

Member
Oct 25, 2017
7,533
California
I guess not enough companies want their games to be DRM free?
That, or not enough customers want their games to be DRM-free. Frankly, I always used Steam for convenience, but I think I would've supported GOG more had they not pulled that stupid publicity stunt years ago. In recent years, I only bothered with GOG when a game that wasn't available anywhere else digitally was available through GOG or when I got one of those emails reminding me about GOG Connect.
 

Icemonk191

Banned
Oct 25, 2017
3,814
And that's why you don't hire openly those gatery folks to run your social media accounts. I would be very surprised if that wasn't connected to their loss of revenue. Certainly I haven't bought anything from them since learning about that despite having a substantial wishlist.

Unfortunately no matter how much I wish this was true the majority of gamers have proven time and time again that they don't give a shit about stuff like that. The real reason is probably something more mundane like "I don't want to open another launcher on my PC!".
 

Deleted member 48897

User requested account closure
Banned
Oct 22, 2018
13,623
Unfortunately no matter how much I wish this was true the majority of gamers have proven time and time again that they don't give a shit about stuff like that. The real reason is probably something more mundane like "I don't want to open another launcher on my PC!".

That's really ironic because I think Galaxy went a long way to me liking the way things worked. The old system they had wasn't terrible, but since the downloader didn't automatically extract and install there were a lot of unnecessary manual steps (the above steps, and of course deleting the zip file once it was no longer necessary)
 

LewieP

Member
Oct 26, 2017
18,148
Sucks for those effected, but I think they've not really been doing much to draw customers into their store for a while now.

PR blunders like their awful social media stuff a while back can't have helped, either.

I hope they are able to find some direction. I think having a major store with a hard line stance on being DRM free is good for the industry.


Edit: I could see Cyberpunk doing GOG + Epic store only at this point.
 

Deleted member 27751

User-requested account closure
Banned
Oct 30, 2017
3,997
Because selection as you said.

But yeah, people saying the 12% cut is sustainable. When I see that GOG with a 30% cut is struggling or that Itch.io is barely breaking even...
That is a massive doubt with connection to firing staff. As much as it was disgusting it was a fleeting moment and with today's 24/7 set and forget media it was forgotten very quickly.

Seems like that Epic % of cut is already having a wonderful effect on the pc storefront market.

Sure let's just ignore all the bad shit Epic is doing because yay not a "monopoly" anymore and fuck staff.
 

Instro

Member
Oct 25, 2017
15,107
That's also kinda the problem though. Once I bought every old game I wanted, I never bought anything else from them again.
Very true, and admittedly many of the most requested games ended up making their way to Steam anyway.

I'm surprised they never tried becoming a small indie publisher frankly.
 

LewieP

Member
Oct 26, 2017
18,148
Seems like that Epic % of cut is already having a wonderful effect on the pc storefront market.
Any speculation that GOG being in trouble could be in any way a consequence of the existence of Epic store is (I think) wildly misguided. Maybe if there was any data to back it up...

Edit: I was also referring to the speculation in the article, not just (sarcastic) to your post.
 

LewieP

Member
Oct 26, 2017
18,148
What they would have to gain from that if they really are financially in hole? How cutting out Steam audience would benefit them in that situation?
I think maybe more than any other game, Epic would pay a huge amount to prevent Cyberpunk from being on Steam.

I don't think this is a good thing, but it could happen.
 

Tovarisc

Member
Oct 25, 2017
24,498
FIN
I think maybe more than any other game, Epic would pay a huge amount to prevent Cyberpunk from being on Steam.

I don't think this is a good thing, but it could happen.

Amount would need to be quite staggering for CDPR to anger a lot of people and gamble with longterm sales of the game. It also could end up harming them more in long term than short term benefit would be.
 
OP
OP
dex3108

dex3108

Member
Oct 26, 2017
22,776
I think maybe more than any other game, Epic would pay a huge amount to prevent Cyberpunk from being on Steam.

I don't think this is a good thing, but it could happen.

And by doing that they would loose pro-consumer image that they are building since day they were founded.
 

LewieP

Member
Oct 26, 2017
18,148
Amount would need to be quite staggering for CDPR to anger a lot of people and gamble with longterm sales of the game. It also could end up harming them more in long term than short term benefit would be.

And by doing that they would loose pro-consumer image that they are building since day they were founded.

Agreed on both counts. It's not an outcome I would desire, but I imagine Epic are putting together a greasy pitch to them right now. Might end up being an offer they can't refuse.

ok how in the flying hell did this turn into an Epic thread too

Y'all need Jesus

I'd guess when it was a thread based on an article that discussed Epic Game Store.
 

srtrestre

One Winged Slayer
Member
Oct 25, 2017
18,983
Time to download my entire gog library to back it up just in case I guess