made said:
Only the official statement that was posted recently. 200k copies shipped EU wide, 28k activations on day 1, which they consider a success.
http://english.boerse-express.com/artic ... /fullstory
Depends a bit on the time period to which they are accruing their costs. They lost from 10-15 million Euros last half-year (from the link). They say that the game cost something in the 'high single-digit million figure' - not much for a large title, and substantially less than the sum of their losses - so they are obviously bleeding money outside of their publishing/development costs. It also raises the question of where the losses come from, as it's almost impossible for back-catalogue to LOSE money - the production cost has been long spent, and they should just be getting profit from whatever sales still exist for G1-3.
That makes me think that EITHER they've separated their running costs from production costs and included them in the 1st half year (and their ratio of running costs : production costs is fucking huge), OR they've placed a chunk of the entire production costs into the 1st half of the year (by which I mean the incidental costs that are in reality needed to produce their product, but aren't required to be accrued together with the value of the product).
In any event, the real cost of creating Arcania (unless they have other major titles in production) includes that 10-15 million that they lost last half-year. We can assume that they weren't burning that kind of money just keeping the lights on, so that's cost needed to maintain the enterprise as a running concern. Which means that when they say that they: 'expect JoWooD to be profitable again in fourth quarter thanks to Arcania', they aren't including the losses that they've been incurring prior to then.
Think of it this way: if JoWood publish a game once every 2 years, they're paying costs for four half-years, but only getting a 'new-release' run of exceptional income for ONE of those half-years (unless their game sells well beyond 6 months). If they aren't making profit IN THE SAME FOUR MONTHS THAT THEY RELEASE THE GAME, they've swum past shit creek and are digging down to the underground shit basin.
Arcania needs to do more than put them in profit in the 4th quarter. It needs to make enough profit in the quarters after that to recoup what they've been spending in the quarters up until now. That is, they need the profits to cover the costs of the entire product cycle.
They aren't out of the woods yet.
Though, sadly enough, 200,000 copies for Europe this close to release is pretty decent. It would take a sharp dropoff to really hurt them from here (although their past troubles could certainly sink them even if Arcania makes a profit).
As for what they really think about the possibility of that happening? Well, they've just deliberately shrunk their company by reducing their capital base (returning funds to their shareholders, where creditors can't get them). You don't do that if you're positive about future investment opportunities.
Oh, and: "Börse Express: In various game forums Arcania did not receive the best feedbacks ... "
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