[Reuters] CD Projekt Red publishes Q1 results - expected net profit down by 64.7%

Bartski

Bartski

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www.reuters.com

Cyberpunk maker reports slump in quarterly profit amid Playstation delisting

CD Projekt SA reported on Monday that its profit fell by more than half in the first quarter from a year earlier as its flagship game, "Cyberpunk 2077," was kept off Sony's PlayStation Store, which a company official said will continue to impact results.
www.reuters.com www.reuters.com

Net profit in the first quarter fell 64.7% to 32.5 million zlotys, well below the 80 million zlotys expected by analysts, impacted by depreciation of Cyberpunk 2077 development expenditures and work on fixing the game. Revenue fell 2% to 197.6 million zlotys ($53.94 million).
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"The general situation as long as we are not back on the Sony store has not changed. One of the leading marketplaces for us is not available and we generate most of the sales on the PC/digital channels," a company official told the conference call.
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Future sales growth, though, depends on its ability to re-engage Cyberpunk players. It confirmed plans to publish free downloadable content and update both Cyberpunk and The Witcher 3 to next-generation consoles in the second half.
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Q1 Results presentation

https://www.cdprojekt.com/pl/wp-content/uploads-pl/2021/05/q1-2021-results-presentation.pdf

Containing patch crash rate graph...

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Roadmap:


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Profit and Loss Account details:

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Well, word of mouth would eventually spread, even if the launch ended up doing very strong numbers. I'm not sure if just allowing it on PSN would cover that percentage decrease though.
 
They should put all resources to fix the PS version and kiss Sony's feet and beg them to put it back on PSN store that's the only thing that could save them
 
kretos said:
They should put all resources to fix the PS version and kiss Sony's feet and beg them to put it back on PSN store that's the only thing that could save them
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They're already doing that since it was taken off the store, the xsx version still cant hit a stable 60 fps since launch.
 
can anyone with technical insight explain why is the crash rate spiking up whenever patches drop, then to continue declining?
 
I just want the Witcher 3 next gen update. I don't care about Cyberpunk 2077 anymore. I'll probably play it next year after all the patches and dlc have been released.
 
Everyone involved in covering, creating, and selling this game did the entire industry a massive disservice and it will and better not be forgotten anytime soon.
 
Its crazy a game that has been in development for such a long time can have such a disasterous outcome.

I guess thats a good lesson for them and other companies.
 
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kretos said:
They should put all resources to fix the PS version and kiss Sony's feet and beg them to put it back on PSN store that's the only thing that could save them
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The Ps4 version is probably never going to get fully fixed. They might make it a bit more stable and crash less but I doubt it will ever be more than some ugly blurry mess with horrible performance.

IMO the best thing they can do is drop last gen support ASAP and fully focus on making a great next gen (as in Ps5/SX) version. Treat it as some sort of relaunch, launch it as a separate release with a new name ("Definitive edition", "Night City Reborn" or some other stupid name) but give current owners a free upgrade. If it's good I could actually see interest in it rising.

THEAP99 said:
Everyone involved in covering, creating, and selling this game did the entire industry a massive disservice and it will and better not be forgotten anytime soon.
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Well in a way it might have a positive side too.
I do think the way this game failed will definitely have an effect on how not only CDPR but other big devs advertise their games moving forward.
 
Hoo-boy. stock price hit the shitter all year.

When the 2077 debacle hit, the stock price dropped, but it kind of rebounded. Since beginning of the year, it's tanked big time to 150 PL. During 2077 launch it was more like 300-400.
 
well this is what u get when u rush a launch to favor ur shareholders. game needed 1 year atleast extra. they did not listen to their developers. and if they dropped last gen it would have really long legs for years to come but nope..
 
While I think they will be more than fine I really hope they (and the investors) learned their lesson.
 
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mejin said:
And people thought Sony would regret anything.
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Sony lost 30% of millions of copies sold on the store. I guess someone made the calculation in regards of cost of customer support + potential demands, though I dont think it equates the lost income.
 
Bartski said:
can anyone with technical insight explain why is the crash rate spiking up whenever patches drop, then to continue declining?
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They adressed it during the confcall, by saying that the spike is due to the process of downloading and installing the update (when doing it in the background at the same time as playing). Overall the stability is improving (and it shows when you play the game)

They also said that they set key metrics (that do not encompass only crashing issues) to reach in accordance with Sony concerning the PS4 version for putting back the game on PSN and that they intend to reach them sooner than later. My guess is the next update (and that would be why it is taking so long) but we never know.
 
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Those Operating Costs skyrocketed from this time last year. Especially the Selling Costs segment of that. Going through the powerpoint and I'm still not sure what exactly these are. Can anyone clarify?

EDIT: Looks like that is tied to salaries, rent, advertisements, and the like. So probably a ton of marketing on Cyberpunk.
 
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I'm still busting to play this tbf, here's hoping they really fix it for the next gen release, would've loved a proper next gen RPG to get stuck into
 
This is a great sign, it shows these people that they can't release shit products and "get away" with it. Hopefully the industry as a whole learns from this.

I love how their "Crash rate" graph doesn't even have fucking numbers or anything, what a useless fucking graph.
 
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Yeah, that's gonna leave a mark. They didn't publish sales for Cyberpunk 2077 and instead rolled all their game sales into one reporting figure? Last time a video game console did that it was because Xbox was cleaning up after Don Mattrick decimated the brand; things are not well in the house of Red.
 
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When Sony cock blocks you from the world's largest gaming platform with millions of userbase, these things tends to happen to your bank account. Cyberpunk should serve as a warning for other publishers not to fuck with Sony and its consumers.
 
For once, I am with Jim Ryan on this. Cyberpunk is horrendous on base consoles. It's not even that it is buggy or runs at 20 fps. It just looks like shit. GTAV looks better. On Xbox One especially, It looks pixelated and far worse than anything ive seen this gen.

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No game should look like that on the left. it is simply unacceptable and I cant believe MS still has it up on their store.

If CD Project were smart, they would stop worrying about the base version and just get both next gen consoles out. my rtx 2080 can run the game pretty well at 30 fps with RT and a combination of high and medium settings with 1440p DLSS, and while consoles dont have DLSS they can use checkerboarding and settle for medium settings and no RT to get to 1440p. It should be easily doable.

Really poor management by CD Project. Their CEO needs to stop complaining about the Sony decision and step down if he has an ounce of dignity.
 
TheUsual said:
Those Operating Costs skyrocketed from this time last year. Especially the Selling Costs segment of that. Going through the powerpoint and I'm still not sure what exactly these are. Can anyone clarify?

EDIT: Looks like that is tied to salaries, rent, advertisements, and the like. So probably a ton of marketing on Cyberpunk.
Click to expand...

Page 8 of this document:


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SlimySnake said:
For once, I am with Jim Ryan on this. Cyberpunk is horrendous on base consoles. It's not even that it is buggy or runs at 20 fps. It just looks like shit. GTAV looks better. On Xbox One especially, It looks pixelated and far worse than anything ive seen this gen.

o0epylT.gif


hTcyWfD.gif


No game should look like that on the left. it is simply unacceptable and I cant believe MS still has it up on their store.

If CD Project were smart, they would stop worrying about the base version and just get both next gen consoles out. my rtx 2080 can run the game pretty well at 30 fps with RT and a combination of high and medium settings with 1440p DLSS, and while consoles dont have DLSS they can use checkerboarding and settle for medium settings and no RT to get to 1440p. It should be easily doable.

Really poor management by CD Project. Their CEO needs to stop complaining about the Sony decision and step down if he has an ounce of dignity.
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MS had exclusive marketing rights for Cyberpunk and was desperate for a game to boost the launch sales of Series X/S after the delay of Halo Infinite . They turned a blind eye to this abomination at the expense of their consumers to serve their own interest. A surprise to absolutely no one .
 
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