The online-only cooperative looter shooter Outriders is another game that was a complete commercial disappointment for publisher Square Enix.
The nonpayment means that Outriders failed to meet sales expectations and has been unable to recoup its development and marketing expenses since release.
People Can Fly “received no royalties from the publisher for the period to December 31st 2021, which means that as of 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,” stated the financial report.
Square Enix previously stated that Outriders was outperforming its expectations for an all-new intellectual property. The publisher also noted at the time that it was content with sales. The game failing to turn a profit since its release, however, goes against that statement.
To make matters worse, People Can Fly does not expect Outriders to ever become profitable. Without any expected royalties, the developer could possibly refuse to create new content for the game.
Square Enix, as the owner of the intellectual property, can though approach any other developer to support the game.
“There can be no assurance that net proceeds from the sale of Outriders in future periods will be sufficient for the publisher to recover the costs incurred and to pay royalties to the Group,” continues the financial report.
Outriders is not alone. Square Enix reportedly suffered a loss of $200 million between Marvel’s Avengers and Marvel’s Guardians of the Galaxy. The mounting losses have pushed the publisher to sell three of its western studios along with their franchises to the Embracer Group for an estimated $300 million.
Crystal Dynamics and Eidos Montreal along with their Tomb Raider, Deus Ex, Thief, and Legacy of Kain franchises, and more will be owned by the Embracer Group once the acquisition gets approved by regulatory bodies in the coming months. Outriders, however, was not part of the sale.