As of August 16, 2021, PCF Group S.A. received zero royalty payments from Square Enix Limited for the game Outriders for the period ending June 30, 2021.
The absence of royalties indicates that Outriders failed to exceed the net sales threshold required to recoup Square Enix's production, distribution, and promotion costs during the game's first full quarter post-launch.
PCF Group S.A. reported a lack of transparency from the publisher, noting that Square Enix did not provide detailed data on sales figures, gross receipts, or total recoupable costs.
The 45-day payment window following the second calendar quarter elapsed without a transfer of funds, confirming that the title had not reached the profitability level necessary to trigger profit sharing.
This financial update highlights the risks of traditional publishing models where developers rely on back-end royalties rather than guaranteed milestone payments.
Management signaled to investors that Outriders has not yet generated supplemental income beyond initial development funding, shifting the focus to long-term sales performance for future cost recovery.
PCF Group S.A. reported on August 16, 2021, that it had not received any royalty payments from Square Enix Limited regarding the sales of the video game Outriders for the period ending June 30, 2021. Under the terms of the production and publishing agreement established in February 2016, royalties are only triggered once net sales proceeds exceed a specific threshold designed to recoup the publisher’s costs related to production, distribution, and promotion. Because the 45-day payment window following the end of the second calendar quarter passed without a transfer of funds, the developer concluded that the game had not yet reached the necessary profitability level to mandate profit sharing.
The scope of this disclosure focuses specifically on the financial performance of Outriders during its first full quarter following its April 2021 launch. Despite the game’s high-profile release, the lack of royalties suggests that initial revenue was insufficient to cover the significant recoupable expenses incurred by the publisher. Furthermore, the developer noted a lack of transparency regarding specific performance metrics, stating that the publisher had not provided detailed data concerning sales figures, gross receipts, or the total costs associated with the title’s development and marketing.
This financial update highlights the risks inherent in traditional publishing models where developers rely on back-end royalties rather than guaranteed milestone payments. The situation reflects a disconnect between public perception of the game's commercial reach and its actual net profitability within the specified timeframe. By issuing this report in compliance with market regulations, the management board signaled to investors that the title had not yet become a source of supplemental income beyond the initial development funding, placing the focus on long-term sales tail and future cost recovery.
