As GoG.com Struggles, Employees Laid Off, Fair Price Package Program Set to End
CD Projekt Red's GoG.com is facing financial issues that have led to a pair of revelations this week that are designed to cut costs. According to Kotaku, about a dozen employees were laid off with one person offering the opinion that restructuring is due to the market oversaturation and increasing competition from other gaming platforms including Epic Games Store and Discord's Store.
“We were told it’s a financial decision,” that person told me in an online message. “GOG’s revenue couldn’t keep up with growth, the fact that we’re dangerously close to being in the red has come up in the past few months, and the market’s move towards higher [developer] revenue shares has, or will, affect the bottom line as well. I mean, it’s just an odd situation, like things got really desperate really fast. I know that February was a really bad month, but January on the other hand was excellent. We were in the middle of a general restructuring, moving some teams around, not unprecedented. But layoffs that big have never happened before.”
In addition to layoffs, GoG.com also issued a statement that it is ending the Fair Price Package program on March 31, 2019. Under the FPP, in regions "where the game is more expensive, we give users the equivalent of the price difference in GoG Wallet funds...from our own pocket". This means that anywhere from 12% to 37% is returned to players.
"In the past, we were able to cover these extra costs from our cut and still turn a small profit. Unfortunately, this is not the case any more."
Removing FPP is not a decision we make lightly, but by making this change, we will be able to offer better conditions to game creators, which — in turn — will allow us to offer you more curated classic games and new releases. All DRM-free.
We wanted to make sure you have some lead time to still benefit from the Fair Price Package. The program will last until the 31st of March, 2019, so if you would like to take advantage of it, now is the time. The funds you gather from the program will keep the 12 months expiration date from the moment you’ve been granted your last funds.