3 ms·
Maybe they are just heavily reinvesting?
by bcye 9mo ago
Maybe they are just heavily reinvesting?
- Ekaros 9mo agoI 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.
- Detrytus 9mo agoStill, making only 32k PLN ($9k) profit on 137M PLN ($38M) revenue seems like a really badly operated business.
- andriamanitra 9mo agoProfit 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.
- IsTom 9mo agoA counterpoint is Amazon's profit on revenue until 2017 or so.
- SirHumphrey 9mo agoAmazon was basically conducting a price war founded by AWS division. Unless GOG is trying to undercut Steam this is a bit apples and oranges.
- NoahZuniga 9mo agoReinvested money isn't a cost, so the amount of reinvesting doesn't impact the profit number in their report.
- npodbielski 9mo agoIn what country? Of course I do not operate business with milions of income, but investing in Poland is usually a cost. In example buying hardware or paying for servers is an invoice so it is cost of you doing business. Of course it depends on accounting and your taxing method. But yes, your profit in Poland is more or less money you got from clients minus money you paid to someone.
- alexp2021 9mo agoInvestment/CAPEX goes to the Balance sheet, not P&L.