In recent reporting, Cyberpunk 2077’s CD Projekt SA reported their profit was below half of what it was from Q1 2020. Read on for more.
As reported in their financial summary (via Reuters), Net Profit was down 64.7% year on year from Q1 2020 which resulted in 32.5 million zlotys. This was below 80 million zlotys predicted by analysts. That wasn’t the only financial hit, however. Revenue was also down 2% to 197.6 million zlotys. If you’re trying to convert in your head, don’t worry. Using the power of Google, 1 USD is roughly equivalent to 3.66 Polish zlotys. Therefore, Net Profit was $8.87 million and Revenue was $53.9 million.
Additionally, selling costs increased 79.6% year on year to 62.1 million zlotys ($16.96 million). It seems the lower profits are due to CDPR basically fixing Cyberpunk 2077. As Piotr Nielubowicz, Vice President and CFO, noted,
"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. These expenses are recognized as current-period costs and are not subject to capitalization."
This is against the backdrop of Cyberpunk 2077’s catastrophic launch, with last gen consoles bearing the brunt of the enormous performance problems and overall broken nature of the game. In fact, the game was so bad that Sony removed Cyberpunk 2077 from their stores. CEO Adam Kicinski recently remarked that he doesn’t know when the game will return as the decision is largely up to Sony,
“Unfortunately, I have no new information in this regard. We are still in discussions and with every patch the game gets better and there is a visible progress, but as we said the decision is an exclusive decision of Sony, so we are waiting for the information about the fact that they took the decision to bring back this game. Until then I am not able to tell you anything more.”