Icelandic studio CCP Games reported a loss of $21m for the company's most recently completed fiscal year.
That's down from a profit of $4.6m reported for the previous financial year.
A significant increase in the firm's Research & Development budget was the main culprit for the downswing, clocking in at $56.5m in 2013 – compared to just $16.5m in 2012.
According to Games Industry, a major portion of the difference is tied to the recent cancellation of its Vampire MMO World of Darkness – a move that also cost 56 Atlanta-based CCP staff members their jobs this week.
"During the year the company assessed its capitalized development assets and determined that a portion of those assets would likely not have future economic benefits," the company stated as part of its report.
"IAS 38 requires that such assets should be derecognized and removed from the balance sheet. The expense related to the derecognized assets are presented as part of research and development expense in the statement of comprehensive income."
Other factors influencing the enlarged budget likely include development investments into Eve Online, Eve: Valkyrie, and Dust 514.