Gaming
Outriders Did Not Reach Profitability In 2021
People Can Fly has confirmed that they have not received any royalties for Outriders as of the 31st of December 2021, meaning that the game has not made a profit […]
People Can Fly has confirmed that they have not received any royalties for Outriders as of the 31st of December 2021, meaning that the game has not made a profit as of December 2021. This means that Square Enix has yet to recoup the development, marketing and distribution costs for the game. Despite this Square Enix has claimed that Outriders has exceeded its expectations, both in sales and active users.
People Can Fly previously stated in August 2021 that they had not received any royalties and that they estimate that the game would have to sell 2-3 million to guarantee a profit. At the time the day one Game Pass release and excessive marketing were two of the reasons cited for the lack of profitability. No official sales figure for the game has been revealed.
People Can Fly is currently working on an unannounced project with Square Enix, it is also working on the Worldslayer paid expansion for Outriders. The Worldslayer expansion will release on the 30th of June 2022 for the PlayStation 4, PlayStation 5, PC, Xbox One and Xbox Series.
Here’s what People Can Fly had to say about Outriders:
Since the game was completed and placed on the market (which happened on April 1st 2021), the Company has been entitled to royalties payable if specific proceeds (as defined in the agreement) from its sales ensure that the publisher recovers a predetermined level of costs incurred in connection with the development, promotion and distribution of the game. The level of royalties depends on the amount of specific proceeds from the game’s sales.
The Group received no royalties from the publisher for the period to December 31st 2021, which means that as at the reporting date net proceeds from the sale of Outriders were insufficient to recover the costs and expenses incurred by the publisher to develop, distribute and promote the title.
This was confirmed by the royalty statement for the fourth quarter of 2021, received by the Group from the publisher.
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