CD Projekt’s Q1 2021 Net Profits Are Down 65% In Part Due to Fixing Cyberpunk 2077 – IGN

CD Projekt has revealed that its Q1 2021 net profits missed market expectations and fell 65% to $32.5 million PLN ($8.84 million USD) in part due to the costs associated with fixing Cyberpunk 2077.

The news was shared during CD Projekt’s Q1 2021 earning presentation, and it was explained that, despite the lower than usual net profitability, the company saw “record-breaking positive cash flows.”

CD Projekt’s aggregate balance of cash, bank deposits, and treasury bonds increased by over 1 billion PLN ($272.1 million USD) to 1.9 billion PLN ($517 million USD. 500 million PLN ($136 million USD) of that has been “earmarked for a dividend, at 5 PLN per share, that will be paid out on 8 June.”

As for why Q1 2021 saw lower profits year-on-year, CD Projekt CFO Piotr Nielubowicz explained that it was in large part due to the work on fixing the problems associated with Cyberpunk 2077.

“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. These expenses are recognized as current-period costs and are not subject to capitalization” Nielubowicz said in a statement.

President and joint CEO of the CD Projekt Group Adam Kiciński said that the company intends to “live up to what we promised our gamers in January” in regards to Cyberpunk 2077, while also rolling out the initial changes in its move to develop two large AAA projects in parallel.

In its presentation, CD Projekt shared a timeline of its “Commitment to Make Cyberpunk 2077 a Long-Term Success,” and it still shows free DLCs and next-gen editions scheduled for later in 2021, in addition to multiple patches and updates.

The company also shared a “Cyberpunk 2077 Stability Improvement” graph that shows how the number of crashes has gone down with each subsequent patch and hotfix.

As for if Cyberpunk 2077 is any closer to being sold on the PlayStation Network, Axios’ Stephen Totilo Tweeted that CD Projekt Red said there are “metrics Sony needs them to hit.”

“We cannot go into the details of where we are with that,” CD Projekt said. “But there is a process. We’re in the middle of [it]…conversations happening…the decision will be announced when it’s ready to be announced”

CD Projekt also reiterated that, in addition to the next-gen edition of Cyberpunk 2077, it also is still planning on releasing PS5 and Xbox Series X/S versions of The Witcher 3: Wild Hunt and the location-based AR mobile game The Witcher: Monster Slayer.

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Adam Bankhurst is a news writer for IGN. You can follow him on Twitter @AdamBankhurst and on Twitch.