In 2022, Larian was still losing money, but by 2023, the tables had turned, and in a big way… and that’s when Baldur’s Gate 3 was released!

According to the Irish Independent, Larian reported a pre-tax profit of €249 million for 2023. This represents an almost twentyfold increase in their cash flow compared to 2022. Although Larian is headquartered in Ghent, Belgium, the financial results were released by Larian’s Dublin-based holding company. Larian’s revenues flow through its Dublin office, where much of the studio’s writing staff is based. Because of Ireland’s favorable tax laws, many companies with European or global headquarters are based in Ireland.

Larian generated €427 million in cash flow last year, and according to the Irish Independent, 15 million copies of Baldur’s Gate 3 were sold, although Larian has not released official figures. According to SteamSpy, 20 million people owned the CRPG on Steam alone last year, and Michael Douse, Larian’s publishing director, said in February this year that the number was “well over 10 million”. Hasbro, the owner of Dungeons & Dragons (on which Larian’s game is based), has already taken home $90 million thanks to the success…

Compare that to 2022. With a cash flow of 22.7 million euros, the operating income closed in the red (-214 thousand euros)! This shows how wasteful the gaming industry can be. In the 2018 Divinity: Original Sin Gameumentary, Swen Vincke and Larian employees talked about what it was like to be an independent studio in the 2000s, with downsizing and working on educational games as contractors, before stabilizing with the first Divinity: Original Sin and its Kickstarter campaign.

Larian is now working on two as-yet-unannounced RPGs, neither of which are related to Baldur’s Gate. They remain an independent studio, and the only major exception is Valve, and they are doing quite well on their own, without any plans to become a subsidiary…

Source: PCGamer, Irish Independent