The year is off to a rough start for CD Projekt. Net profit at CD Projekt Red fell 64.7% compared to the same time last year, down to 32.5 million zlotys ($8.87 million USD). That’s according to the company’s most Q1 financial statement that was just released today. It marks a stark departure from 2020’s results which were largely boosted by pandemic lockdowns.
“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,” said chief financial officer Pitor Nielubowicz. In the same conference call, Nielubowicz stated that the majority of CD Projekt’s profits came from sales of Cyberpunk, but he declined to provide any details.
According to Reuters, analysts expected CD Projekt to turn a profit of 80 million zlotys. Much of those lost sales can be attributed to Cyberpunk 2077’s continued delisting from the PlayStation Store, which prevents both PS4 and PS5 owners from downloading the game.
In order to get back on the PlayStation Store, Sony has reportedly provided CD Projekt Red with a set of metrics that it must meet first. We don’t know what those metrics are, but CDPR is working with Sony to ensure all requirements are met.
CD Projekt also notes that falling sales are due to increased costs related to new game development. CDPR has two new AAA games that will begin development in 2022 according to the financial statement, as well as planned next-gen updates for Cyberpunk and Witcher 3 coming in the latter half of 2021.
Cyberpunk 2077 will continue to set the tone for CD Projekt for the next year. The game launched to disastrous performance on previous-gen consoles eventually resulting in the game being removed from the PlayStation storefront. Refund requests eventually totaled $51 million in lost sales.
