CD Projekt Red just revealed its Q1 2021 financial statements, which coincides a roadmap to the company’s plans along the way.
The Polish company has not been getting a good time since it launched Cyberpunk 2077 late last year. Following a disastrous release, the game has been paving a path of poorer sales for the studio. As per the financial report, the company incurred dramatic loss in sales of up to 64.7 percent as of the first quarter of 2021. Seemingly, partly a reflection of the public’s present purview of the game development company.
Aside from CDPR’s tarnished reputation, the drastic change in sales figure also explains consumers’ changing dispositions. One being the attenuated hype over the game that has been teasing anticipating gamers for years. Another is the waning response to the still ongoing pandemic that previously set a massive onus for home entertainment. Meaning, as people are slowly going back into society, priorities simply have changed.
The Polish company’s sales are not just fixed on a single title, however. Even its five-year old game, The Witcher 3, still remains profitable over the years, especially during the height of COVID-19. Which was a time when enforced lockdowns were in place and people were encouraged to distance themselves from one another.
However, reduction in sales does not imply that the company is suddenly in the “red” when it comes to finances. Despite controversial launch, Cyberpunk 2077 actually did make CDPR massive profits Abundant enough, in fact, that the company manages to set budget for big undertakings in the future. Interestingly, that would entail “parallel development of two AAA games” which are set to kick off next year.
In an interview with Reuters, CDPR CFO Piotr Nielubowicz confirmed that part of the massive loss in sales is due to Cyberpunk 2077. Specifically, due to “continuing depreciation of development expenditures,” efforts to fix the game, and R&Ds relevant with future endeavors.
It seems that the company’s budget is more than sufficient for developing big-budget titles. Looking into the details, it appears that the company also has plans in making acquisitions when it can. Just last March, it acquired Digital Scapes, which is a company it previously works with. Furthermore, this meant that the company is willing to expand on its capabilities by absorbing useful companies.
Meanwhile, CDPR seems busy trying to make a native port of both The Witcher 3 and Cyberpunk 2077 to current-gen platforms.
Image used courtesy of CD Projekt Red IR/YouTube Screenshot