Cyberpunk 2077’s bad reputation puts its publisher out of the game

Cyberpunk 2077’s bad reputation puts its publisher out of the game
Cyberpunk 2077’s bad reputation puts its publisher out of the game

June 01, 2021
Today at
18:16

Video game sales plummeted in the first quarter of 2021, halving CD Projekt’s profits. Its stock has plummeted 66% since the end of August 2020.

CD Project fails to go up the slope. The Polish video game publisher, known in particular for Cyberpunk 2077 and the series The Witcher, reported on Monday evening of” a turnover of 197.6 million zlotys (approximately 43.2 million euros) for the first three months of the year, which represents a slight increase of 2.4% compared to the same period a year earlier.

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CD Projekt’s first quarter 2021 results, analysts say, imply that sales of its Cyberpunk 2077 game have fallen well below 1 million units, down from 13.7 million at the end of 2020.

The net profit on the other hand fell to 32.5 million zlotys. (7.1 million euros) compared to 91.9 million in the first quarter of 2020. This “is mainly due to the continued depreciation of development expenses for Cyberpunk 2077, the work of updating the game and the activities of R&D related to projects. These expenses are recorded as expenses for the current period and are not subject to capitalization, “explained its vice-president and financial director Piotr Nielubowicz in a press release.

The announcement went very badly on the stock market. And even if the company tried to point out the positive points, evoking record positive cash flow, investors did not want to know. CD Projekt shares lost up to 9.57% in Warsaw. Making it the worst performance of the Stoxx Europe 600 index of the session.

Heavy fall in Cyberpunk sales

According to several analysts, these results imply that Cyberpunk 2077 game sales fell well below 1 million units in the first quarter, against 13.7 million at the end of 2020. Most of them expect 700,000 copies between January and March, while Morgan Stanley is more pessimistic with “only” 500,000 units.


According to analysts, CD Projekt’s first quarter 2021 results imply that sales of its Cyberpunk 2077 game have fallen well below 1 million units, compared to 13.7 million at the end of 2020. ”

“It seems that Sony’s decision to remove the title from the PlayStation Store had a very negative impact on sales of the game,” said Michal Wojciechowski, analyst for the Polish broker Ipopema.

Still, the salvation of Polish society will automatically go through a renewed confidence of the players. Credit Suisse now expects 7 million copies of Cyberpunk will be sold this year, against 8.6 million before. A return of the game to the PlayStation Store “could have a positive, albeit temporary, impact on the share price.”

In short

> Market capitalization: 15.6 billion zlotys (or 3.5 billion euros)

> Performance since the start of the year: -43,44%

> Dividend yield: 3,22%

> Number of analysts to buy on the security: 7 (32%)

Source

Cyberpunk #2077s bad reputation puts publisher game

 
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