CD PROJEKT Report: Profit Down by 61%, R&D Expenses Up by 391%

On the evening of November 26, CD PROJEKT released its financial report for the third quarter of 2024. The Polish company group reported a decrease in revenue and profit while noting an increase in game development costs. They also highlighted the sales figures for Cyberpunk 2077.

Cyberpunk 2077

• CD PROJEKT's quarterly revenue amounted to 227.5 million PLN (55.4 million USD), which is 49% less than a year ago.
• CD PROJEKT's net profit fell by 61% to 79.1 million PLN (19.2 million USD).
• The decline in figures is related to the lack of new releases: last year, CD PROJEKT released the Phantom Liberty expansion for Cyberpunk 2077, whereas this year, nothing similar was launched. Nevertheless, CD PROJEKT is generally satisfied with the quarter's results.
• The majority of the revenue came from CD PROJEKT RED — 181.1 million PLN (44.1 million USD, -52.6%). GOG accounted for another 49.3 million PLN (12 million USD, -41%).
• Cyberpunk 2077 and the Phantom Liberty expansion earned 114.6 million PLN (27.9 million USD) during the quarter. Compared to last year, their revenue decreased by 67%.
• Meanwhile, total revenue from The Witcher series games and their expansions increased by 44% to 54.2 million PLN (13.2 million USD).

• The primary market for CD PROJEKT remained North America. By the end of the quarter, the region accounted for 74.2% of the group's revenue. Europe followed with 17.4%, then Asia (2.4%), Australia (1%), and South America (0.5%). The domestic market (Poland) provided 4.4% of revenue.
• CD PROJEKT's expenses on research increased by 391% year-over-year to 22.5 million PLN (5.5 million USD). These are costs for working on games in their initial stages before development. The funds were directed towards Project Orion (the sequel to Cyberpunk 2077), Canis Majoris (a remake of the first The Witcher), and Project Hadar (a new IP).
• CD PROJEKT spent 64.4 million PLN (15.6 million USD) directly on game development during the quarter, nearly the same amount as the previous year.
• The next part of The Witcher has transitioned to full-scale development, with 400 people working on the game.
• The Project Orion team includes 64 people, with 42 people on Project Sirius (a The Witcher spin-off by The Molasses Flood studio), and 18 people on Project Hadar.

• As of November 26, Cyberpunk 2077 had sold over 30 million copies. Sales of the Phantom Liberty expansion reached 8 million copies. In both instances, sales included separate copies as well as those sold as part of the Ultimate Edition.