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GOG to go through some reorganization after suffering losses

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While Steam continues to do well with it being the most popular games store, it seems CD PROJEKT Group's store GOG is really starting to struggle.

CD PROJEKT recently released their latest financial results, along with a call with investors that went over how the whole business is doing. It's not all bad news for them, since they saw overall 38% more sales revenue compared to the third quarter of last year. On the GOG side though, it posted increasing losses and so it's going to be restructured.

Over the current year to date it appears GOG has seen losses of about $2.21 million, which is pretty bad considering the 1.37 million they gained during the same period last year.

They've said that GOG "should focus more on its core business activity - which means offering a handpicked selection of games with its unique DRM- free philosophy" and so there's going to be some changes to the GOG team, with some moving over instead to CD PROJEKT RED. Additionally, they've "initiated reorganization of GOG’s operations" to focus on the "core business" and they're hoping this will "improve its financial effectiveness in 2022".

It's not really surprising, when you think that Epic Games continue to desperately try and turn a profit by pulling more customers to their store and even they don't expect to turn a profit until at least 2024.

Article taken from GamingOnLinux.com.
Tags: GOG, Meta
22 Likes
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102 comments
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TheRiddick 1 Dec, 2021
WELL if they release GOG Galaxy 2 for Linux and Mac they might get some bonus points from the community... just a thought.
Phlebiac 1 Dec, 2021
Quoting: LibertyPaulMit is exceedingly difficult for any PC game store to be profitable unless they sell Steam keys

I know I would be more inclined to purchase from GOG if it included a Steam key along with the DRM-free version, like Humble.

They had their "GOG Connect" program for building up your GOG library based on games you already had on Steam, which was nice, but this would be more the other direction.
fenglengshun 1 Dec, 2021
Personally, I just find other game stores to be a hassle. And most of their feature parity with Steam is lacking, even if you're a Windows gamer.

The whole Steam package is what's keeping me on Steam. Steam Cloud, Steam Workshop, Steam Guide, Steam Community (I don't use it much, but posting cool/funny screenshots do give that dopamine hit), Steam Friends, Steam Chat, easy invite, Steam Play Together (I've used it play a fighting game with a friend - latency isn't great but it's just for fun so whatevs), Steam Overlay (with easy browser access)...
BlooAlien 1 Dec, 2021
Quoting: kuhpunkt
Quoting: STiAT
Quoting: kuhpunkt
Quoting: STiATI'd like a competitor to Steam.

What would be the benefit of that?

Less costs for devs/publishers. I know AAAs usually csn easily afford that and still make millions, but indies often can't really afford it.

And besides that?

What has always been the benefit of competition for the consumer? It forces companies to continue to improve, or lose customers to their competition. With little or no competition, a company can basically abuse the hell outta their customers, and nobody can do jack about it. For examples of this behavior, look to Microsoft, Google, Facebook, Xfinity, and many others who abuse the hell out of their monopoly (or near monopoly) positions in the "marketplace" and notice how they get away with some of the shadiest practices simply because the lack of competition for people to switch to gives them that ability.
redman 1 Dec, 2021
Is really sad news for me, the only store that I buy games is GOG. I don't have thousand of games I only have a few selected games, because time is scarce and why buy something that I will not use. The killer feature for me is that I have the game in my power, I don't depend that the "cloud" is working that day, I can install in any of my machines. Yes, is been a hassle installing them sometimes but PlayOnLinux or Lutris is always making life easy.
What is really bad for me is that always people tend to compare to Valve, Valve is a monopoly in the gaming scene, they can do whatever they want whenever they want it. They have the 75% market share on 2013 and the number are not open (Is a for profit company after all, and doing really good).

The really important thing is that we need diversity, we need more stores that give us choices. That's what good for us the consumers, and yes easy is good but sometimes is Free as in Beer nothing more.
metalinux 1 Dec, 2021
I am a huge supporter of DRM-Free games, movies and software and only currently buy from GOG because of that.

I bought multiple games from Steam in the past, but upon realising that you are only buying a licence and that even backing up the games still requires Steam and an infrequent connection to Steam's servers to play them, kind of put me off from Steam (I realise some games are DRM-Free on Steam, but getting some of them to run is a real faff). I need to have the option to download and backup the games I own to a local drive.

Not to be dismissive of Valve, I am very grateful for the upstream contributions they have made to the Linux Kernel, the WINE Project, MESA development and more - I hope that continues. If Valve made the switch and removed the majority of DRM on their games, I would only buy through Steam, to be sure of that.

Currently, I donate the money I would use to buy some games to the WINE Project itself and any other Linux distro/open source software that I use. In my opinion, they need the money more than an $8 billion dollar corporation like Valve.

Back to GOG though:

GOG/CD Projekt Red, I really hope the following gets addressed (for your sake if nothing else):

- GOG Galaxy Linux Client - I find it very difficult to believe that after years of selling Linux versions of games on GOG, that we still don't have a Linux client. While the website interface is usable enough, it is painful trying to download games unless you use a client like Lutris or MiniGalaxy.

- Contributions to Linux upstream - I feel that GOG would get a lot more credibility, certainly in the Linux community (just look at what Valve has done), if they used some of their clearly talented staff to contribute upstream to projects that use/connect to GOG or its games (like the WINE Project).

- Better Regional Pricing - More currencies need to be supported on GOG, I currently have to buy my games in dollars (with whatever exchange rate I am given).

Aside from that, the store and my library is easy enough to navigate and as I mentioned before, DRM-Free is the way to go in my opinion.
damarrin 1 Dec, 2021
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GOG’s no-DRM policy is nice, but it has nothing to do with Linux or open source.

They started out as an old games store and no-DRM was them trying to stand out and was fitting for their catalogue where publishers wouldn’t be adamant about protecting their investments.

The lines are all blurred now with new games on GOG and old games on Steam and Steam is winning.

But I bet Steam isn’t winning because it has first-class Linux support. In fact, the only reason they do so much for Linux is because they can afford it and someone decided Windows’ monopoly needs to be broken and that is the real reason Valve deserves our (Linux users’) support. For now.
kuhpunkt 1 Dec, 2021
Quoting: BlooAlien
Quoting: kuhpunkt
Quoting: STiAT
Quoting: kuhpunkt
Quoting: STiATI'd like a competitor to Steam.

What would be the benefit of that?

Less costs for devs/publishers. I know AAAs usually csn easily afford that and still make millions, but indies often can't really afford it.

And besides that?

What has always been the benefit of competition for the consumer? It forces companies to continue to improve, or lose customers to their competition. With little or no competition, a company can basically abuse the hell outta their customers, and nobody can do jack about it. For examples of this behavior, look to Microsoft, Google, Facebook, Xfinity, and many others who abuse the hell out of their monopoly (or near monopoly) positions in the "marketplace" and notice how they get away with some of the shadiest practices simply because the lack of competition for people to switch to gives them that ability.

Or... the competition comes in and in the worst case scenario, forces a company to cut down costs and the service becomes worse as a result of that. Do you want that?

It's always this mantra that competition is great... when the status quo is pretty damn good. Steam is getting 20 years old soon. Has Valve ever exploited their situation? Did they ever raise the cut they demand? Did they ever make it worse for customers? No, they improved.

Because they have a philosophy that works and makes sense. They understand that this is a symbiotic relationship... and that's good.
BlooAlien 1 Dec, 2021
Quoting: kuhpunktSteam is getting 20 years old soon. Has Valve ever exploited their situation? Did they ever raise the cut they demand? Did they ever make it worse for customers? No, they improved.

Because they have a philosophy that works and makes sense. They understand that this is a symbiotic relationship... and that's good.

In the vast majority of cases competition is great because in the vast majority of cases people almost always abuse a position of "power" or "dominance". However, I gotta totally agree with you on your assessment of Valve/Steam. I was not a real fan of them at first (way back in the time before…) but they really have in large part just continued to improve.

Sadly, all potential competition has chosen not to even try to compete on merit at all, by creating an equivalent or superior product/service. While Valve earns their 30% cut in a variety of ways that make it more than deserved, companies like Epic take pot shots at them for charging "too much", and play lame exclusivity games with developers and customers, while not offering even a fraction of the functionality, capability, or services Valve has.
CyborgZeta 1 Dec, 2021
I liked GOG when I was on Windows.

But I'm on Linux now, and GOG is no longer an option. Valve caters to me, now a Linux user, through Steam. GOG does not cater to Linux users like me. The choice is, shall they say, obvious.
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