The developers of Cyberpunk 2077, CD Projekt Red, just reported a 60% drop in profits. There are many reasons for this, and they all have to do with Cyberpunk 2077's disastrous launch. As a result of months of controversy, Cyberpunk 2077 recently got a new director to oversee the game's future updates.
One of the most anticipated video games in recent memory has been tumultuous in its development and release. CD Projekt Red started issuing refunds for the game because it was in such poor shape. CD Projekt lost $2 million by just giving refunds.
Several months after Cyberpunk 2077's release, stories about the game's shortcomings are still making the rounds in the media. CD Projekt Red has been trying to get Cyberpunk 2077 back on the PlayStation Store for a while, but the PlayStation Store has yet to humor the company. In our last update, we shared some positive news:
CD Projekt Red lost a lot of its profits because of Cyberpunk 2077's issues
Reuters reported on May 31 that CD Projekt SA missed its net profit expectations for Q1 by 64.7%, resulting in a loss of $8.8 million. CD Projekt SA's chief financial officer, Piotr Nielubowicz, said in a statement, "Lower than usual net profitability is mainly due to continuing depreciation of Cyberpunk 2077 development expenditures, work on updating the game," plus ongoing research for future projects.
Cyberpunk Boss speaks on issues: Cyberpunk 2077 Will "Live Up To What We Promised", Claims CD Projekt Boss
According to Reuters, Cyberpunk 2077's patch 1.2, which resolved over 500 issues, generated cost increases of 79.6% ($16,921,040). Reuters reports that CD Projekt will begin high-budget development by 2022 and explore various merger and acquisition opportunities to recoup some of its losses. CD Projekt's share prices reached an all-time high before the release of Cyberpunk 2077, when they dropped heavily.
Nevertheless, the profits of the company have fallen by 60% since the game launched. Cyberpunk 2077's release still has a massive impact on CD Projekt SA, which could affect them until they make it back onto the PlayStation Store.