CD Projekt writes off nearly $10 million spent on new Witcher game from The Molasses Flood

CD Projekt has reevaluated the scope of its upcoming multiplayer project in The Witcher series developed by The Molasses Flood. The company will come up with a new framework for the game and its concept.

Ivar Evil-Eye from GWENT

What happened?

CD Projekt made the announcement in a new investor filing on March 20, saying it will establish an impairment allowance with regard to expenses related to The Molasses Flood’s new game codenamed Project Sirus.

These expenses amount to PLN 42.9 million ($9.8 million), of which PLN 33.4 million ($7.63 million) wil affect CD Projekt’s financial results for FY 2022. The remaining PLN 9.5 million ($2.17 million), incurred in January and February 2023, will affect the financial results for the first fiscal quarter of 2023.

“The aforementioned decision is based on results of evaluation of the scope and commercial potential of the original concept of Project Sirius, and ongoing work on formulating a new framework for this project,” the statement reads.

As DM XTB analysts told Bankier.pl, this could be interpreted as “cutting off an unpromising project at an early stage.” So CD Projekt might want to redefine the game’s concept and reboot its production. However, other details about Project Sirius and its development remain undisclosed.

Shortly after the investor filing, CD Projekt shares fell 7.3% to PLN 121.3 per share, but analysts expect the news to have a positive impact in the long term.

What is known about Project Sirus?

• CD Projekt first mentioned Project Sirus in October 2022 as part of its updated business strategy. It was described as a standalone Witcher game developed by The Molasses Flood, which should include a story-driven campaign and multiplayer elements.
• In its report for the third quarter, the company noted that the size of the team working on the project is about 60 developers.
• In January, a Redditor spotted The Molasses Flood’s job listings. According to the texts, Project Sirus was expected to have stylized graphics, co-op and PvE elements, a non-linear storytelling, as well as multiplayer game modes.
• The Molasses Flood, acquired by CD Projekt in 2021, is a small studio founded by former BioShock and Halo developers. It is best known for its survival titles The Flame in the Flood and Drake Hollow.
• Overall, CD Projekt now has five new Witcher games in its development pipeline, including Project Polaris, the next major installment in the series and the beginning of a new trilogy, and Project Canis Majoris, a remake of the first Witcher game developed by Fool’s Theory.