GOG, CD Projekt's digital storefront for DRM-free PC games, is losing money. During its most recent earnings report, CD Projekt revealed that while the company as a whole is making plenty of cash on the back of Witcher 3 and Cyberpunk 2077 sales, GOG is not.
Overall revenue at CD Projekt is up 38% year over year (totaling $34.7 million so far), but GOG lost $2.21 million. CFO Piotr Nielubowicz elaborated in a presentation to investors.
"Regarding GOG, its performance does present a challenge, and recently we've taken measures to improve its financial standing," said Nielubowicz. "First and foremost, we've decided that GOG should focus more on its core business activity, which means offering a hand-picked selection of games with its unique DRM-free philosophy. In line with this approach, there will be changes in the team's structure."
Some of GOG's developers will be transferred to other projects, and GOG will also leave the Gwent consortium at the end of 2021. The Gwent Consortium is a multi-division project that focuses on the development of The Witcher card game Gwent, which is largely aimed at competing against other digital card games such as Hearthstone.
GOG launched back in 2008 as "Good Old Games" with a singular mission of updating and selling older, DRM-free PC games. It's since evolved into CD Projekt's digital storefront on PC, selling Witcher and Cyberpunk but also quite a lot of non-CD Projekt games so long as they're DRM-free. Except for Hitman 3, apparently.
Nielubowicz concluded with GOG refocusing "on its core business" to improve its "financial effectiveness in 2022."
Although GOG isn't doing well, Cyberpunk 2077 is having a much better time of things, especially when compared to the game's disastrous launch last year. Cyberpunk is now rated "very positive" on Steam's recent reviews and it's even a top seller thanks to being 50% off on the Autumn Sale.