In a new report to investors, Polish video game developer People Can Fly said they received no royalties from Square Enix for the sale of Outriders in the first quarter, the developer said This means that despite the success of Outriders, they are not profitable. A new financial report from Poland’s People Can Fly confirms that as of December 31, 2021, Outriders (released April 2021) was still unprofitable, meaning that Square Enix has not provided sales share receipts for development, Marketing, and Distribution. Since Outriders has been completed and released (occurring on April 1, 2021), if developer People Can Fly’s sales-specific revenue (as defined in the agreement) ensures that the publisher is able to repay a predetermined level of development, promotion, and Issue related costs.
Outriders developer People Can Fly received no royalties from Square Enix as of Dec. 31, meaning the net proceeds from the sale of Outriders were not enough to cover publishing costs as of the reporting date. People Can Fly’s partnership with Square Enix entitles People Can Fly to royalties after the collaborative online shooter recouped all costs incurred in developing and marketing the game, but despite Square Enix’s claims of good results, About $3.5 million has been accumulated. In its first month of release, Square Enix received support from Outriders Worldslayer and did not receive any licensing bonuses.
As for People Can Fly, despite not receiving royalties, People Can Fly has mentioned several times in their latest report that continuing to support the game is one of their top priorities going forward, with a big expansion coming soon in June. The expansion suggests a big batch of content drop, with almost 100 Legendary items, a new campaign, and new types of classes into the package.
The CEO said that while the addition may bring more players and interest in Outriders, it could be a factor in the game’s lack of monetization. It may seem odd to develop such a large series for Outriders, but perhaps hope that one big series will be enough to drive it to profitability. Again, this appears to be a considerable risk, as does continue to invest time and resources in Outriders in this way. Outriders don’t seem to have done quite as well as Square Enix and People Can Fly had hoped it would. Critics were featuring Outriders on the lists of the most disappointing games of 2021 with the likes of Back 4 Blood and Aliens: Fireteam Elite because it failed to maintain its momentum just a few weeks after launch.
