20.5 million less profit in 2023 (2022 49 mil, 2023 28 mil)

The currency exchange swing from +11 million NZD in 2022 to a -6 million in 2023 makes me wonder which currencies caused that dynamic: Euros, USD, Yuan, Rubles?

EDIT: a little checking shows that the NZD fell against both the USD and the Euro for most of 2023. 1 USD and 1 Euro each converted into fewer NZD.


https://www.exchange-rates.org/converter/nzd-eur

There is a world-wide downswing in all tech sectors after the Covid years, and games especially have been hit hard - as would be expected. Look at same year financial statements for other companies. It's a blood bath right now. Witness all the layoffs from Blizzard, EA etc.

Knowing what I know, those figures actually look reasonable.

"

ChanBalam wrote:

The currency exchange swing from +11 million NZD in 2022 to a -6 million in 2023 makes me wonder which currencies caused that dynamic: Euros, USD, Yuan, Rubles?

EDIT: a little checking shows that the NZD fell against both the USD and the Euro for most of 2023. 1 USD and 1 Euro each converted into fewer NZD.


https://www.exchange-rates.org/converter/nzd-eur

If the NZD weakens - falls - against USD, say, then 1 USD copnverts into MORE NZD, not less.
A weakening home curency is generally good for companies who earn in foreign currency and then convert back to their home currency when calculating profit, especially if most of their costs are also in that weaker local currency.

TL:DR GGG should be doing better if the NZD falls because the mostly foreign userbase pays with currency converting to more NZD.

~~ edit: this is assuming they don't fix their MTX prices in NZD so they get chepaer when the currency falls. Pretty sure that doesn't happen.

"

t0lkien wrote:

There is a world-wide downswing in all tech sectors after the Covid years, and games especially have been hit hard - as would be expected. Look at same year financial statements for other companies. It's a blood bath right now. Witness all the layoffs from Blizzard, EA etc.

Knowing what I know, those figures actually look reasonable.

False. Tech is having it easy compared to most other industries.
You make it sound like it's an amusement park or something.

"

ShamelessWhiteknight wrote:

False. Tech is having it easy compared to most other industries.
You make it sound like it's an amusement park or something.

can you substantiate that at all? especially in context with profits skyrocketing during covid for anything online entertainment (streaming services, but also gaming) since people were stuck inside?

"

ArtCrusade wrote:

"

ShamelessWhiteknight wrote:

False. Tech is having it easy compared to most other industries.
You make it sound like it's an amusement park or something.

can you substantiate that at all? especially in context with profits skyrocketing during covid for anything online entertainment (streaming services, but also gaming) since people were stuck inside?

You are free to substantiate why I'm wrong and why the former poster is not with a "trust me bro" source.

They are sinking monstrous amounts of $$$ into POE2 so that's why. POE2 is going to wipe the floor of all ARPGs, even POE1 is competitive or better with CURRENT new gen ARPGs, let alone when POE2 comes out.

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poeGT wrote:

They are sinking monstrous amounts of $$$ into POE2 so that's why. POE2 is going to wipe the floor of all ARPGs, even POE1 is competitive or better with CURRENT new gen ARPGs, let alone when POE2 comes out.

That's a bit pollyanish to be fair.

We don't know how PoE2 will land with the main PoE1 playerbase, let alone the entire arpg market. In fact I'd argue that there will be more than a few that will prefer PoE1, and might even be resentful at the attention PoE2 gets.

As far as monetization goes, I will be interested to see how this works in practice since MTX are shared between games. For example I will never need stash tabs for PoE2.

It all depends on how PoE2 plays. Right now, based on what we have seen, it's possible PoE1 might still be preferred by many arpg enthusiasts. I do think PoE2 is trying to appeal to a broader audience, and the harcorde PoE1 players might not like that type of focus.

Global inflation,
recession,
lots of amazing games releases.
Bills are higher.
Food cost are higher.
Electricity are higher.
Farmers on strike.
Gasoline up in prices.
Rent up in cost.
And those who have 2 or more children knows food cost goes up even higher.

Some countries are in really bad economics troubles. Go look it up.

TLDR: Spending on games has hit hard on all game studios. GGG included.

"

DarthSki44 wrote:

As far as monetization goes, I will be interested to see how this works in practice since MTX are shared between games. For example I will never need stash tabs for PoE2.

PoE1 has kinda saturated the market. PoE2 is a new chance to find a bigger audience whom will have to buy stash tabs again, and supporter packs will always be a safe way to monetize for GGG. It's a lateral expansion