CD Projekt Red (CDPR) has taken a financial hit this year partially due to Cyberpunk 2077's poor reception and continual development post-launch.
The company reported a 65% profit reduction in its first quarter (Q1), missing market estimates—earning only $8.84 million at the start of its 2021 fiscal year. However, according to a recent earnings presentation published at the end of May, CDPR did note a sizable profit margin of 47%. Its dividend total came to around $138 million USD with each share amounting to just over a dollar.
CD Projekt Red Still Fixing Cyberpunk 2077 Six Months Later
According to Piotr Nielubowicz, CDPR CFO, problems arose due to the massive issues gamers found with Cyberpunk 2077 immediately after its launch. Most of the company's resources were reallocated to fixing the problems with their brand new title instead of directed to other ventures.
"Lower than usual net profitability is mainly due to continuing depreciation of Cyberpunk 2077 development expenditures, work on updating the game, and R&D activities related to future projects," Nielubowicz explained in a statement meant to summarize Q1.
Adam Kiciński, joint-CEO of the CDP Group, seemed to back up the claim. According to him, "a large part of the team" is still working on the game. "Nearly half," he specified, are devoted to perfecting the initial software and adapting it to next-generation consoles.
He did reaffirm the studio's commitment to making sure Cyberpunk 2077 will "live up to what we promised our gamers in January"—which is good news for fans who have grown to love the game despite its unfortunate bugs.
"We are convinced that we can bring the game to such a state that we can be proud of it and therefore successfully sell it for years to come," he said.
Fortunately, CDPR is still chugging along with new projects despite its current roots in Night City. The company still plans on releasing its next-generation versions of The Witcher 3: Wild Hunt and its mobile augmented-reality adaptation The Witcher: Monster Slayer.
Despite setbacks, CDPR appears to be back on the rails and eager to make good on the promises made to its fans. We can't wait to see what this company has in store heading into the second half of 2021.