The value of CDPR's shares has reportedly dropped by 75% since the release of Cyberpunk 2077

[Boleskine]

Time to backup your GOG libraries if you haven't done so already?

https://www.eurogamer.net/cd-projek...dly-plummeted-75-per-cent-post-cyberpunk-2077

CD Projekt's share value has reportedly plummeted 75 per cent post-Cyberpunk 2077​

But it's not quite CD Projekt In-the-Red just yet.

Published on 16 Jul 2022

CD Projekt - the publisher behind studio CD Projekt Red, developer of The Witcher games and, of course, Cyberpunk 2077 - has seen its share value plummet by over 75 per cent.
That's according to Business Insider Poland, which says that the disastrous launch of Cyberpunk 2077 has wiped the value of the then most-valuable games company in Europe from over 40 billion Polish złoty - that's around £7.11bn - to less than zł10 billion - about £1.77bn.

The drop in CD Projekt's value - whilst still remaining one of Poland's most valuable companies - reportedly takes it back to a value last seen around 2017.

That means that Dying Light developer Techland - which is also based in Poland and thought to be worth around 10.6bn Polish złoty (£1.88bn) - is now seemingly worth more and continues to increase in value (thanks, PC Gamer) thanks to the release of Dying Light 2: Stay Human.

ICYMI, Quantic Lab, a company which provides quality assurance (QA) support, has responded to a claim it misled Cyberpunk 2077 developer CD Projekt Red over its work on the game.

A 14-minute YouTube video from a channel named Upper Echelon Gamers claimed the QA studio had placed junior members of its team on the project instead of seasoned veterans, and flagged too many minor bugs. These issues, the video claimed, impacted Quantic Lab's work and therefore the overall game.

"Each project we undertake is unique with regard project requirements. Project direction is agreed and adjusted accordingly as per real time requirements with our clients," Quantic Lab boss Stefan Seicarescu said in response. "Quantic Lab always strives to work with transparency and integrity with our industry partners."

 

[Lim-Dûl]

They should have focused more on making f2p mobile games

 

[notpl]

Technically true, although this is because of an overall hit to overvalued tech-sector stocks than anything to do with cyberpunk. What should be reported on is how ludicrously overvalued it was between 2018 and 2021.

 

[Salvo]

You reap what you sow

 

[Gargaune]

Technically true, although this is because of an overall hit to overvalued tech-sector stocks than anything to do with cyberpunk. What should be reported on is how ludicrously overvalued it was between 2018 and 2021.

Either way, I really hope we don't lose GOG over this shit. It's where I do most of my videogame shopping these days. Probably best I buy that big storage HDD soon, though.

 

[underground nymph]

The only good game CDPR made was the first Witcher. So whatever, good riddance.

 

[Paul_cz]

CDP with 1000 employees was more valued than Ubisoft with 20000. Obviously they were insanely overvalued and even now, at 90PLN, are still overvalued.

 

[rusty_shackleford]

It takes 20 years to build a reputation and five minutes to ruin it

 

[Latro]

this why you don't put dildos in your videogames

 

[RaggleFraggle]

Technically true, although this is because of an overall hit to overvalued tech-sector stocks than anything to do with cyberpunk. What should be reported on is how ludicrously overvalued it was between 2018 and 2021.

Either way, I really hope we don't lose GOG over this shit. It's where I do most of my videogame shopping these days. Probably best I buy that big storage HDD soon, though.

GOG could split off into a separate company and form partnerships with Nightdive, Zoom Platform, the remnants of Interplay, and so on to preserve old games and revive forgotten properties. Reinvent themselves as a company that caters to the nostalgia of millennials for the good ol’ days of gaming.

 

[KeighnMcDeath]

Dandy.... 1800 games to back up... huzzahhhhh.

Its a new game with a countdown timer.

 

[None]

This is what happens when you invest more in marketing and HR than the product side of your business. Unfortunately HR and marketing are self-replicating parasites and wont be held accountable in the long run.

 

[BruceVC]

Time to backup your GOG libraries if you haven't done so already?

https://www.eurogamer.net/cd-projek...dly-plummeted-75-per-cent-post-cyberpunk-2077

CD Projekt's share value has reportedly plummeted 75 per cent post-Cyberpunk 2077​

But it's not quite CD Projekt In-the-Red just yet.

Published on 16 Jul 2022

CD Projekt - the publisher behind studio CD Projekt Red, developer of The Witcher games and, of course, Cyberpunk 2077 - has seen its share value plummet by over 75 per cent.
That's according to Business Insider Poland, which says that the disastrous launch of Cyberpunk 2077 has wiped the value of the then most-valuable games company in Europe from over 40 billion Polish złoty - that's around £7.11bn - to less than zł10 billion - about £1.77bn.

The drop in CD Projekt's value - whilst still remaining one of Poland's most valuable companies - reportedly takes it back to a value last seen around 2017.

That means that Dying Light developer Techland - which is also based in Poland and thought to be worth around 10.6bn Polish złoty (£1.88bn) - is now seemingly worth more and continues to increase in value (thanks, PC Gamer) thanks to the release of Dying Light 2: Stay Human.

ICYMI, Quantic Lab, a company which provides quality assurance (QA) support, has responded to a claim it misled Cyberpunk 2077 developer CD Projekt Red over its work on the game.

A 14-minute YouTube video from a channel named Upper Echelon Gamers claimed the QA studio had placed junior members of its team on the project instead of seasoned veterans, and flagged too many minor bugs. These issues, the video claimed, impacted Quantic Lab's work and therefore the overall game.

"Each project we undertake is unique with regard project requirements. Project direction is agreed and adjusted accordingly as per real time requirements with our clients," Quantic Lab boss Stefan Seicarescu said in response. "Quantic Lab always strives to work with transparency and integrity with our industry partners."

This is never good news for any listed company, its not about the company being profitable and as someone else mentioned it could also have been overvalued so you could look at this as a correction. But obviously sentiment is a big part of the buying and selling of shares and CDPR shouldnt have released Cyb2077 in the state it was in

I believe they have learnt there lesson and I am sure the next Witcher will as entertaining and worthwhile as the previous games in this series

 

[BruceVC]

It takes 20 years to build a reputation and five minutes to ruin it

No there reputation is only ruined for people who are not prepared to accept a gaming company can make a mistake. If W4 is released in a terrible state then I would agree there reputation is ruined. But surely we can all allow a company that has brought us GOG and the beloved Witcher franchise one serious mistake ?

 

[Maxie]

Nothing to laugh about, those stocks directly translate into workplaces.

 

[BruceVC]

Nothing to laugh about, those stocks directly translate into workplaces.

Yes its never something to laugh at when a company loses this type of share value but end of the day they are a product driven sales company and thats a critical part of there survival. So in other words once they release W4 and its well received lots of gamers will buy W4 and there sales revenue will increase and hopefully that will restore confidence in investors buying shares so the share price goes up

But its linked to there games being bought

 

[Darth Roxor]

good

 

[Zarniwoop]

This is the dumbest take since I read a Morgoth or Zombra post.

Everything is down. Or are you going to tell me Cyberjank caused Intel and Tesla to drop as well

 

[Absinthe]

Zarniwoop, are you high? CDPR actually got sued by its investors over CP2077 several times over before the lawsuits consolidated because they were pissed about CP2077 fucking their investment. (The combined lawsuit was ultimately settled for a joke amount of $1.85 mil though.) You really think an absolutely abysmal launch of a flagship product had no impact on CDPR's valuation? Even though pretty much all the investors are blaming CP2077? Yes, stock market is down, but a 75% drop is definitely beating the market.

 

[Zarniwoop]

Zarniwoop, are you high? CDPR actually got sued by its investors over CP2077 several times over before the lawsuits consolidated because they were pissed about CP2077 fucking their investment. (The combined lawsuit was ultimately settled for a joke amount of $1.85 mil though.) You really think an absolutely abysmal launch of a flagship product had no impact on CDPR's valuation? Even though pretty much all the investors are blaming CP2077? Yes, stock market is down, but a 75% drop is definitely beating the market.

For sure it had some effect but it's a little dishonest to blame everything on one game. I'm sure the majority of their revenue comes from GOG anyway.

 

[BruceVC]

Zarniwoop, are you high? CDPR actually got sued by its investors over CP2077 several times over before the lawsuits consolidated because they were pissed about CP2077 fucking their investment. (The combined lawsuit was ultimately settled for a joke amount of $1.85 mil though.) You really think an absolutely abysmal launch of a flagship product had no impact on CDPR's valuation? Even though pretty much all the investors are blaming CP2077? Yes, stock market is down, but a 75% drop is definitely beating the market.

For sure it had some effect but it's a little dishonest to blame everything on one game. I'm sure the majority of their revenue comes from GOG anyway.

Internet forums can be funny places, if you have one wrong post you can be screamed at as if you committed murder

The revenue stream for listed companies like CDPR comes primarily from sales of games. The buying and selling of shares is how companies get additional cash but its not linked to sales of products

So what happens when you have mass selling of shares is companies have to pay out to investors and this hurts overall cash in the bank but the revenue stream from sales of games can still be strong and sustainable

Thats why you find thousands of companies dont list and are privately owned meaning they dont have shareholders

CDPR is a publicly traded company which means anyone can access their financial statements on their website, I havent done that but Im sure sales from GOG and there games is enough so they dont run at a loss. But what really matters is there end of year results and are they going to reach there target because that's what investors expect

 

[Zarniwoop]

So what happens when you have mass selling of shares is companies have to pay out to investors and this hurts overall cash in the bank but the revenue stream from sales of games can still be strong and sustainable

Dude what?

That's not how it works. People selling their shares does not mean the company has to give them money.

Thats why you find thousands of companies dont list and are privately owned meaning they dont have shareholders

A private company means the shares aren't listed for public trade. It doesn't mean they don't have shareholders, it means the shareholders trade their shares privately as opposed to with the general public.

But what really matters is there end of year results and are they going to reach there target because that's what investors expect

Yeah no shit, and they didn't. Partially because of this game but also partially because the entire world economy is FUBAR and especially tech stonks are getting hammered big time.

 

[whydoibother]

The value of CDPR's shares has reportedly dropped by 75% since the release of Cyberpunk 2077

This is true, however there are two things to consider:
1. That's comparing current price to the most inflated bubble price CDPR had, and everyone with a brain knew it would fall from there.
2. The whole market is like that in the given period.
Still, obviously Cyberpunk was expected by investors to do GTAV numbers, and obviously it didn't. No idea why that game, which is a one time purchase without recurring payments, without multiplayer, without DLC and expansions to buy, is the one that drove the price up so much. It could've been a good game, but I can't see how it could've been a good "product" for investors, unless the rights were sold for a movie or something, depending on how the tabletop copyright is written.

Also GOG has been operating at a small loss since forever, they keep saying it sometimes just barely makes a profit, and usually it is around the zero mark/small loss. Its more of a marketing scheme for the company than a business on its own, at the moment.

 

[Zarniwoop]

but I can't see how it could've been a good "product" for investors,

Weren't they planning a shitload of DLC for it? I seem to remember someone saying that. That's why the main storyline is so short and only takes part in a tiny portion of the map, they wanted to expand it into a GTA-like universe through a bunch of quest DLC

 

[BruceVC]

So what happens when you have mass selling of shares is companies have to pay out to investors and this hurts overall cash in the bank but the revenue stream from sales of games can still be strong and sustainable

Dude what?

That's not how it works. People selling their shares does not mean the company has to give them money.

Thats why you find thousands of companies dont list and are privately owned meaning they dont have shareholders

A private company means the shares aren't listed for public trade. It doesn't mean they don't have shareholders, it means the shareholders trade their shares privately as opposed to with the general public.

But what really matters is there end of year results and are they going to reach there target because that's what investors expect

Yeah no shit, and they didn't. Partially because of this game but also partially because the entire world economy is FUBAR and especially tech stonks are getting hammered big time.

You joking right? You think every company has shareholders ?