CD Projekt Profits Tank Thanks to 'Cyberpunk' Repairs

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    “Cyberpunk 2077,” developed and published by Poland-based CD Projekt, was riddled with bugs upon its release in December — a major surprise given the $130 million budget and eight years of development.

    “This was a huge lesson for us, one we will never forget,” said Adam Kiciński, president and co-CEO of CD Projekt.

    Swift backlash ensued, but 13.7 million copies were still sold through the end of 2020, making it one of the most successful titles in CD Projekt’s history.

    That momentum did not carry through the first quarter of 2021.

    CD Projekt reported that net profits fell to $8.84 million in the first three months of the year, a 65% decline.

    The reason? All of those efforts to patch and fix “Cyberpunk 2077” are expensive.

    “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 company CFO Piotr Nielubowicz.

    First-quarter sales weren’t as dismal as profits, though they were unremarkably flat — up only 2% year-over-year to $53.9 million.

    However, CD Projekt did see “record-breaking positive cash flows.” The company’s holdings nearly doubled to approximately $517 million in the quarter.

    The next step is to attempt to make “Cyberpunk” a true hit despite its initial setbacks. Gabriel Amatangelo, who’s worked on “Dragon Age” and “Star Wars” titles, was appointed as the game’s director last week.