CCP Has recorded a loss of over $21 million for financial year 2013, a considerable drop from a profit of $4.6 million the previous year. Revenues for the company rose to $76.7 million from $56.3 million.

The predominant, if not only, factor in the sudden profit dip is a massively increased R&D budget, which shot up from $16.5 million in FY 2012 to $56.5 million in FY 2013. Whilst some of those costs are likely to relate to the development of Eve Universe properties Valkyrie, Online and Dust, a significant portion is thought to be attributable to the cancellation of World of Darkness, the Vampire MMO which ceased development earlier this week, resulting in the loss of 56 jobs.

A note in CCP's full financial presentation seems to support the theory that a large factor in this $40 million increase in R&D costs was the removal of asset value previously attributed to World of Darkness.

You're like a year slow man.

Not sure if it works the same for CCP, but when most companies say they take a "loss," its not that they really lost any money.

See companies project to make so much money for the year, say 50 million USD. If they only earn 40m that year, they "lost" 10m.

Oil companies purposely project high every year, so instead of showing that they make Billions every year, they can say they lost a few million...

Massive increases in R&D usually means long term profits.

Example:
Blackbarry = Low R&D expenditures.
Apple = High R&D expenditures.

Blackberry was very successful in the short term, but look at them now.

Not always the case. It depends how the information is being presented.

He's right on this isn't a big deal, for oil companies do it. They "lose" revenue which is shown "in red" because there are people like you in the world that see this and think "they didn't do so good this year", which usually isn't the case at all.

Not quite sure I understand how a decrease in asset valuation would lead to an increase in R&D costs?