Stardock CEO Brad Wardell says that the company's strategy RPG Elemental: War of Magic will end up costing the company money in the long run. This will happen, the company says, despite the fact that the game managed to break even on pre-orders.
"Elemental made its money back on day one and has continued to be profitable to this point," Wardell told Gamasutra in an email. "However, based on our projections we anticipate by the end of second quarter 2011 that Elemental will end up losing money overall as our objective is to spend what is necessary to ensure that the game meets the expectations of our customers."
Wardell did not disclose how many units the game has sold to date or how much money the company made off initial sales. While the company will lose money on the game, Wardell sees it as an investment in its PC customer base, who were very dissatisfied with the launch of Elemental.
One of the reasons that Elemental will lose money is several high profile hires to help drive the future development of the game in the right direction. Earlier this month Stardock hired former Civilization V lead designer Jon Shafer to take the reins of the game's development. Shafer will oversee the development of two expansions for the game. After that, he will begin designing his own game for Stardock.