The devs made more than $101.4 MILLION dollars? But "iNfLaTiON"?

[DuX1112]

So Factorio has sold over 3.5 million copies since its release according to the devs.

Sources:
1. https://80.lv/articles/factorio-sales-surpassed-3-5-million-copies/
2. https://www.factorio.com/blog/post/fff-372
3. https://vginsights.com/developer/11073/wube-software-ltd

Each copy is $30.

Mutiply $30 x 3,500,000 and you get...

According to Video Game Insights (link above) = $101,400,000

Basically 101.4 MILLION DOLLARS in revenue. AND still counting.

But they need to increase the price for $5 to "adjust for inflation." I'm sure $100+ million won't be enough for that and can't cover their bills and pay their developers (which, not sure if you know, but they have THOUSANDS of developers for Factorio). It's completely justified and makes total sense.

On a serious note, this move is just an insult to people's intelligence.

Is inflation going to even be noticeable to Wube, though? Let's see how this year will work for them below.

Just FYI, the game's loyal followers will try to convince you that even a profit of $38 million dollars (the lowest possible number they have been able to arrive at, lmao!) is "small potatoes." 😁

Originally posted by FullFrontal Asschemist:

Which [$38 million] is small potatoes when you run a company, as I understand it. You are free to provide your own calculation, though.

So yeah I will provide my calculation. Let's see how 2023 would work out for Wube, according to their own provided data, shall we?

First, small potatoes? They were a 9 man team until a couple of years ago! (When they made the $101M+ in revenue). Now they're 31. This is not a company with 2,500 employees and a huge building in Seattle or something.

So let me actually be generous to the fanboys and add stuff in Wube's favor. Let's say those 31 employees get a salary of $4000/month. (Note: this is THREE TIMES MORE than the average salary in Czech Republic!)

That's $124,000/month for salaries.

Or, multiplied by 12 months, to arrive at the yearly cost for salary expenditures, we get:

$124,000 x 12 = $1,488,000/year for salaries

Meaning, if RiO's assesment of them having $38 million in the bank, they could finance the current level of game development for... Exactly 25.5 YEARS.

Also, according to Wube's OWN numbers, they said they are selling roughly 500,000 copies every year. Considering the price will soon be increased, let's see how much revenue Wube will be getting from 500,000 copies in 2023, shall we?

500,000 copies X $35 per copy = $17,500,000 projected revenue for 2023.

Or rather, Wube plan to sell Factorio copies in the worth of $17.5 MILLION DOLLARS THIS YEAR ALONE.

Now, let's say the expenses are super high! Let's assume Wube has to give 2/3 of its revenue away. We still arrive at $17,500,000 / 3 = $5,833,333.

In this worst case scenarion, Wube will have $5.8 million dollars MORE by 2024.

Which is roughly 4 TIMES what they need for salaries in a single year, or in other words, their "profit margin" is at least 4-5 X than their expenses. That's a very profitable company! And the salaries were factored as being THREE TIMES higher than the average salary in the Czech Republic. Which means that this profit margin is EVEN HIGHER for them. Maybe up to 10 X.

So, no, FullFrontal Asschemist, according to even the worst assumptions, Wube are still very rich, and will be still very rich, with the inflation or without the inflation. Which is not necessarily bad - maybe they will hire 200 more people and start working on 5 new games at the same time? Hopefully so! But it would be good if they would SHOW SOMETHING for all that money, not just piling it like a mountain and being "gib moar moneyz."

PS - Wube have 31 developers and are based in the Czech Republic - you can calculate costs and expenditures by finding the relevant information online.

PPS - Valve actually doesn't "take 30% off" since 2018. This change by Valve, ALONE, is MORE THAN ENOUGH to "account for inflation":

"Valve has changed the way it shares revenue with developers on Steam—and it’s good news for games that make a lot of money. Currently, revenue for Steam games is split 70/30 between the developer and Valve. But from now on, Valve will only take a 25% cut of any earnings over and above $10 million, and only 20% of earnings beyond $50 million. The first $10 million will still be split 70/30, and the change will impact any revenue earned after October 1 this year."

4. https://www.theverge.com/2018/11/30/18120577/valve-steam-game-marketplace-revenue-split-new-rules-competition
5. https://store.steampowered.com/news/group/4145017/old_view/1697191267930157838

Finally, let us also remind ourselves that the Factorio developers, Wube, have already raised the price several times before (while NEVER offering a discount), and that back in 2018, they promised that they will never increase the price again (spoilers, they did):

Originally posted by dev:

After careful consideration, we have decided to set the new price of the game to 30 USD (or your regional equivalent). This change will become effective as of the 16th of April 2018. This is the final Factorio price update, unless something unforeseen happens, so it will also be the price for the game for 1.0 release.

The recent move to increase the price also contradicts the developer's own philosophy, as described here, in a Reddit post by founder Kovarex:

kovarex | 1 yr. ago | Developer

Thanks, this is appriciated. Big part of it is, that our (or at least mine) approach to money is, that once you have enough to live comfortably, and enough to financially support the ongoing (and future) projects you want to do, you don't really need more. There is no reason to squeeze the extra $ just to get yacht bigger then the next millionare, or to buy the overprised expensive stuff when you buy it just to show off. And this has some deep implications, because once you feel that you have enough, you can safely ignore all these people trying to buy % of your company for big cash. I actually reply to these kind of offers with the sentence "Thanks, but I have no use for the extra money". This feels very different to the culture I sense to be prevelant, where big amount of startups is created with the goal of "big exit" in mind.

So the implication of my approach is that we have no investors and shareholders pressuring us into the "service for investors to exploit", which would be very understandable demand once they invested big.

So in the end, we can feel smug about it, and you can't put a pricetag on that :)

Source: https://www.reddit.com/r/factorio/comments/skdfna/comment/hvno6jc/?utm_source=share&utm_medium=web2x&context=3

[DRY411S]

How much money Wube and their owners have in their bank accounts is pure conjecture and
has not been backed up by any facts.

The headline figure of 100 million plus revenue does not stand up to scrutiny. Before it reached the first million sales, I had paid £15 , not $30. This was before it was on Steam, but after the initial backer funding.

Am I fan of the game? Oh yes. I literally have the t-shirt they sold in 2017. Maybe the OP would like to add the revenues from 'merch' into the very dodgy arithmetic they have used?

For the record, I understand the rationale of the price increase. Do I support or approve the magnitude of it? I'm neutral. But it suggests to me that Wube are a company that have an eye on careful financial business management, rather than personal greed.

[DRY411S]

I'm sorry to spoil this topic with some FACTS, all of which are in the public domain, but

TL:DR Wube has less than £6M in the bank and the directors took no dividends out of the business in the last 12 month. Salaries and operating costs are not in public domain, balance sheet is.

Wube are a company based in Prague, Czechia.
In a financial sense, they are small, private limited company, registered in the UK. Their company registration number is 9201188. Source "Who We Are" at https://www.factorio.com/privacy-policy
Under UK Law, small private limited companies must file annual accounts. These accounts are published in the public domain. The last accounts in September 2022 and all previous accounts are filed by Wube at UK Companies House Source https://find-and-update.company-information.service.gov.uk/company/09201188
The last annual Balance Sheet shows that the company PAID NO DIVIDENDS to the directors (the 3 founders of Wube). If they had paid dividends, legally these must be shown on the balance sheet
It shows the actual cash in the company bank account adjusted for creditors and debtors.
No profit & loss accounts are presented. There is no requirement in UK Law for small companies to provide these. This is where you would see the sales, salaries and other company costs, including payment of debts.
A UK company is defined as ‘small’ if it has any 2 of the following:

a turnover of £10.2 million or less
£5.1 million or less on its balance sheet
50 employees or less

Source:
https://www.gov.uk/annual-accounts/microentities-small-and-dormant-companies#:~:text=Your%20company%20will%20be%20'small,50%20employees%20or%20less
Turnover is defined in UK Companies Act 2006 section 474(1)(I) amended January 2009 https://www.legislation.gov.uk/ukpga/2006/46/section/474/2009-01-01#pageTitle

Those are hard facts. Less hard is that actual profit can be estimated. The balance sheet shows that UK Corporation Tax of slightly less than £72,800 was paid. Corporation Tax is paid on profits after allowable expenses, but before dividends, at a rate in 2022 of 19%. Thus it can be deduced but not PROVED that Wube made a profit (NOT REVENUE) of about £383,000 last year.

For the record, I own a UK small private limited company of my own, and therefore have practual knowledge and experience in this legislation. I am not in anyway associated with Wube Software or any of the employees. Also, if any of this were not in public domain, I would not be posting it here.

[Merque]

Originally posted by DRY411S:

Great post.

BAMMM bloody mike drop!
Well done Sir. I indeed had found some information akin to yours... which was unfortunately hidden behind a paywall.

[🐠🍑]

Originally posted by Merque:

Originally posted by DRY411S:

Great post.

BAMMM bloody mike drop!
Well done Sir. I indeed had found some information akin to yours... which was unfortunately hidden behind a paywall.

Probably some journalist stole the info right out of this thread.

[schnappkatze]

Originally posted by DRY411S:

I'm sorry to spoil this topic with some FACTS, all of which are in the public domain, but

TL:DR Wube has less than £6M in the bank and the directors took no dividends out of the business in the last 12 month. Salaries and operating costs are not in public domain, balance sheet is.

Wube are a company based in Prague, Czechia.
In a financial sense, they are small, private limited company, registered in the UK. Their company registration number is 9201188. Source "Who We Are" at https://www.factorio.com/privacy-policy
Under UK Law, small private limited companies must file annual accounts. These accounts are published in the public domain. The last accounts in September 2022 and all previous accounts are filed by Wube at UK Companies House Source https://find-and-update.company-information.service.gov.uk/company/09201188
The last annual Balance Sheet shows that the company PAID NO DIVIDENDS to the directors (the 3 founders of Wube). If they had paid dividends, legally these must be shown on the balance sheet
It shows the actual cash in the company bank account adjusted for creditors and debtors.
No profit & loss accounts are presented. There is no requirement in UK Law for small companies to provide these. This is where you would see the sales, salaries and other company costs, including payment of debts.
A UK company is defined as ‘small’ if it has any 2 of the following:

a turnover of £10.2 million or less
£5.1 million or less on its balance sheet
50 employees or less

Source:
https://www.gov.uk/annual-accounts/microentities-small-and-dormant-companies#:~:text=Your%20company%20will%20be%20'small,50%20employees%20or%20less
Turnover is defined in UK Companies Act 2006 section 474(1)(I) amended January 2009 https://www.legislation.gov.uk/ukpga/2006/46/section/474/2009-01-01#pageTitle

Those are hard facts. Less hard is that actual profit can be estimated. The balance sheet shows that UK Corporation Tax of slightly less than £72,800 was paid. Corporation Tax is paid on profits after allowable expenses, but before dividends, at a rate in 2022 of 19%. Thus it can be deduced but not PROVED that Wube made a profit (NOT REVENUE) of about £383,000 last year.

For the record, I own a UK small private limited company of my own, and therefore have practual knowledge and experience in this legislation. I am not in anyway associated with Wube Software or any of the employees. Also, if any of this were not in public domain, I would not be posting it here.

Are you some kind of fact super hero?

[Overeagerdragon]

Originally posted by ఆ:

Originally posted by Merque:

BAMMM bloody mike drop!
Well done Sir. I indeed had found some information akin to yours... which was unfortunately hidden behind a paywall.

Probably some journalist stole the info right out of this thread.

Troll confirmed... the guy literally posted his sources... click on the link and do some work yourself instead of strawmanning in favour of your trolling...it's public domain. It's called irrefutable truth and makes you look like a bloody idiot; even if you ARE doing this just to troll

[🐠🍑]

Originally posted by Overeagerdragon:

it's public domain. It's called irrefutable truth

What is public domain?

[Merque]

Originally posted by schnappkatze:

Are you some kind of fact super hero?

Sounds like something DC would come up with.

*puts up trailer voice*

In the summer of 2023 a single man will go against an army of liars and hypocrites to deliver the ultimate truth.

STARRING

Hugh Jackman as THE FACT CHECKER "DRY411S"

Ben Stiller as THE WEASEL "Dux"

and bringer of doom, destroyer of laughter, was-funny-in-one-and-a-half-movies

I present you

Adam Sandler as Dr. FLAT EARTH Shepard

Coming to a theatre near you
(inflation rates may apply)

[Overeagerdragon]

Originally posted by Merque:

Originally posted by schnappkatze:

Are you some kind of fact super hero?

Sounds like something DC would come up with.

*puts up trailer voice*

In the summer of 2023 a single man will go against an army of liars and hypocrites to deliver the ultimate truth.

STARRING

Hugh Jackman as THE FACT CHECKER "DRY411S"

Ben Stiller as THE WEASEL "Dux"

and bringer of doom, destroyer of laughter, was-funny-in-one-and-a-half-movies

I present you

Adam Sandler as Dr. FLAT EARTH Shepard

Coming to a theatre near you
(inflation rates may apply)

*searches for his "oscar material" award...
Damn; no such thing
*searches for his "Emmy-worthy" award....
G'DANGIT....
Fine; just take my points then...

[Merque]

Originally posted by Overeagerdragon:

*searches for his "oscar material" award...
Damn; no such thing
*searches for his "Emmy-worthy" award....
G'DANGIT....
Fine; just take my points then...

Thank you kind sir.

But it was indeed a low hanging fruit... any reason is a good reason to have Jackman manhandling Sandler infront of a jury while informing the latter on the intricacies of british tax law.

[Overeagerdragon]

Originally posted by Merque:

Originally posted by Overeagerdragon:

*searches for his "oscar material" award...
Damn; no such thing
*searches for his "Emmy-worthy" award....
G'DANGIT....
Fine; just take my points then...

Thank you kind sir.

But it was indeed a low hanging fruit... any reason is a good reason to have Jackman manhandling Sandler infront of a jury while informing the latter on the intricacies of british tax law.

I kinda want Morgan Freeman as a narrator in that movie though :P

[Merque]

Originally posted by Overeagerdragon:

Originally posted by Merque:

Thank you kind sir.

But it was indeed a low hanging fruit... any reason is a good reason to have Jackman manhandling Sandler infront of a jury while informing the latter on the intricacies of british tax law.

I kinda want Morgan Freeman as a narrator in that movie though :P

Sorry mate, Wube's the producer and with Sandler and Jackman in the cast our budget of 101.4 million $ is kinda reaching its limits.

[🐠🍑]

Originally posted by Merque:

Originally posted by Overeagerdragon:

I kinda want Morgan Freeman as a narrator in that movie though :P

Sorry mate, Wube's the producer and with Sandler and Jackman in the cast our budget of 101.4 million $ is kinda reaching its limits.

Maybe they could cast AI Morgan Freeman?

[Khaylain]

Originally posted by DRY411S:

-snip-

Jesus Christ, you didn't have to make it a massacre.

Bloody well written and sourced. It's lovely to see straight facts instead of "back of the napkin calculations" for this.

[DRY411S]

Originally posted by schnappkatze:

Originally posted by DRY411S:

I'm sorry to spoil this topic with some FACTS, all of which are in the public domain, but ...

Are you some kind of fact super hero?

tbh, my interest was piqued by the 'what have Wube done with all the money earned from factorio?' aspect of the OPs topic. The notions that it was either stored in a huge pile of cash in a bank, or the Devs had taken it and were living a millionaire's life, and greed is driving the price increase are interesting propositions, and it got me thinking about what the actual position is.

When I realised that Wube are a UK registered business, and being a UK business owner myself, who has to follow the exact rules they do, it was easy to find what I needed to fact check.

I am surprised at the low level of annual profit though, now Ive looked at every yearly balance sheet. I'd love to see the profit & loss and understand the costs more. The costs as a percentage of estimated revenue (because we cannot be sure what the revenue is), do seem high. But that kind of data won't be available until they stop being a small company.