The absence of royalties from Square Enix means thatOutriders failed to meet certain business goals, even though Square Enix considered the game to be “on the way to becoming a major license” in the spring of 2021. Released in the Game Pass subscription, the sci-fi action-RPG had seen 3.5 million people pass a month after its release, but the number of copies sold was never revealed.
“People Can Fly did not receive any royalties from the publisher for the period up to December 31, 2021, meaning that as of that closing date, the net proceeds from the sale of Outriders were insufficient to recoup 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 that People Can Fly received from the publisher“, can we read.
Although a generous paid extension is expected on June 30, People Can Fly warns that there is no guarantee thatOutriders become profitable one day. “There can be no assurance that the net proceeds from the sale of Outriders in future periods will be sufficient to allow the publisher to recover costs incurred and pay royalties to People Can Fly“, explains the report.
Project Gemini and Project Dagger: two AAA games for 2024
People Can Fly, which does not own any rights to the Outriders franchise, adds that it has the right to refuse to make new content and expansions, in which case Square Enix may choose another developer to replace it. This precision intended for the shareholders does not mean that relations between the studio and the publisher have deteriorated, especially since the Polish studio is still working on a new AAA for Square Enix whose code name is Project Gemini. We also learn that the latter will be of a volume comparable to Outriders and that it is aiming for a 2024 release.
Square Enix created a surprise this week by announcing that it was parting with all the properties obtained in 2009 with the purchase of Eidos Interactive, for the benefit of the Embracer group. This $300 million sale includes Crystal Dynamics studios, Eidos Montreal, Square Enix Montreal and around fifty games and licenses including Tomb Raider, Deus Ex, Thief and Legacy of Kain. Square Enix has however kept control of its games and licenses developed by external studios, such as Just Cause, Life is Strange or Outriders.
In addition to Project Gemini with Square Enix, the studio is working with Take-Two Interactive on Project Dagger, an action-RPG with a substantial budget (between 40 and 60 million euros) whose development has been entrusted to its teams based in the United States. The release of the game is also targeting the year 2024.
In 2021, for its first year as a listed company, People Can Fly achieved a turnover of 38.3 million euros, up 74% and a net profit of 13 million euros. , up 150%. This increase is due in particular to the money received from Square Enix and Take-Two for its two AAAs in development.
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