BIGtrouble77 wrote on Jun 3, 2019, 11:53:
I hope dragging out development on this doesn't negatively affect CD Projekt Red considering their troubles lately.
Yes, their revenue is declining as Witcher sales drop off more and more, GOG has posted minor red numbers this quarter (~$400K loss for Q1/2019), Gwent has BY FAR missed their lofty expectations of printing money and things won't turn around for the CD Projekt group until they have their next million seller which Cyberpunk 2077 is undoubtedly going to be given all the super-hype.
Yes, everything is on a decline and heading south but it is a very shallow decline. Nothing alarming about it at all (yet).
On a whole, they are still in a very solid financial position:
- They reported a net profit of ~$4 million for Q1/2019.
- They have "cash & cash equivalents" worth ~$40 million in the bank so that's a nice safety cushion. Their short term and long term liabilities are lower than that so they could easily buy out of all debt with their current reserves.
- Their market capitalization (Warsaw Stock Exchange) at the current stock price is north of $5 billion.
- They could easily raise capital or sell some shares if they needed "emergency cash".
On the other hand, they have huge expenses with their staff of 850+ people across the group, 400+ of which are currently involved in development of Cyberpunk 2077.
It's not like they don't have any pressure. Investors are getting impatient. CD Projekt originally promised investors to alternate between huge, profitable releases on a more frequent schedule and now they've been stuck working on Cyberpunk for a long ass time.
The year 2019 will most likely be a rather bleak one for CD Projekt but nowhere near an existential crisis. Investors won't be happy if Cyberpunk doesn't make it this year because they always want to see growth.
If Cyberpunk does not release this year then all the investors are gonna get from CD Projekt is (further) decline but such is the life of project-based video game development.
Things will turn around big time in 2020 when Cyberpunk will come out. It will make CD Projekt and their investors a very happy bunch for several years to come as they will make lotsa monies year after year from the DLCs, the GOTY etc. etc.
I would also bet real money that CD Projekt will remaster Cyberpunk for next gen consoles (Cyberpunk 2077 Punked Up Edition?).
Thanks to their growth, they will also most likely be able to finally work on two huge projects simultaneously so they can release products more frequently.
So, yeah, 2019 is gonna be a slump year and it will be a bit shitty for them but once Cyberpunk is here all of that will be forgotten.