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Default CDProjekt Revenue up 38% Thanks to Witcher on Switch

November 22nd, 2019, 21:37
Quarterly revenue is up … and in good part due to a successful port of The Witcher 3: Wild Hunt

From NintendoLife

Our third-quarter revenues were over 38% higher than during the corresponding period in 2018. This is due, among others, to increased sales of The Witcher 3, first shipments of the game’s Nintendo Switch edition and an increase in revenues posted by GOG.com.
I have been loving the game - no one will mistake it graphically for the PC/console version … but gameplay maps well to the Switch, and it is an incredibly solid and well performing port.

Congrats to CDPR!
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November 22nd, 2019, 21:45
I watched some released game-play videos and the graphics are very downgraded. Still it's a plus to play a game like this on the go. Can't wait to play Cyberpunk 2077.
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November 22nd, 2019, 22:01
Bit surprise gog.com is doing well with the pricing pressure from epic. Do you recall how much better it is doing ?
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November 22nd, 2019, 22:09
Originally Posted by you View Post
Bit surprise gog.com is doing well with the pricing pressure from epic. Do you recall how much better it is doing ?
Last I remember reading was the GOG Ltd division doesn't make much of a profit. It's the gaming arm CD Projekt S.A that makes most of the companies revenue every year.

Link - https://www.rpgwatch.com/forums/showthread.php?t=42198
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November 23rd, 2019, 01:10
Yes but that is old - not ancient but old - per Tax's post at the top of this thread which i presume is a quote from the earnings report:

"and increase in revenues posted by GOG.com."

Originally Posted by Couchpotato View Post
Last I remember reading was the GOG Ltd division doesn't make much of a profit. It's the gaming arm CD Projekt S.A that makes most of the companies revenue every year.

Link - https://www.rpgwatch.com/forums/showthread.php?t=42198
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November 23rd, 2019, 01:30
Anyway hopes this helps. It has a breakdown of the earned profits.

Link - https://twinfinite.net/2019/11/cd-pr…yberpunk-2077/

Here is the original 88 page PDF version.

Link - https://www.cdprojekt.com/en/investo…t-for-q3-2019/
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November 23rd, 2019, 01:48
Whatever works. Pump that dough right into Cyberpunk 2077 and polish that thing up until it glistens.
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November 23rd, 2019, 02:43
Well, according to the article your title could also have been CDProjekt Revenue up 38% Thanks to Gwnet on IOS.

ANyway good sales on the switch isn’t a surprise. It has a massive install base and graphics while definitely good wasn’t the reason The Witcher 3 was a good game.
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November 23rd, 2019, 04:02
Originally Posted by JFarrell71 View Post
Whatever works. Pump that dough right into Cyberpunk 2077 and polish that thing up until it glistens.
Absolutely - looking forward to it!
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November 23rd, 2019, 12:16
Looks like gog.com was 1/3 of revenue but was an operating lost. Revenue did increase but loss grew faster than revenue which is not a good sign. Also they have started production of the box version of cyberpunk so it is pretty close to release.
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Despite gog poor performance they consider it critical for selling their own games.

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almost missed this near the end - basically it sounds like they wrote off gwent losses against gog.com:

Commentary regarding the results of GOG.com
During the third quarter of 2019 the value of Revenues from sales of goods and materials (corresponding to the basic activity
profile of GOG.com, i.e. digital distribution of videogames via the GOG.com online platform and the GOG GALAXY application)
increased by 12% compared to the reference period (from 27 388 thousand PLN to 30 580 thousand PLN). This increase in sales,
coupled with greater profit margins, resulted in an increase in taxable profit from sales of goods and materials to 9 391 thousand
PLN, i.e. 17% more than during the reference period in 2018.
The reported revenues from sales of goods and materials mainly reflect distribution of goods licensed from external suppliers. In
this scope, in terms of revenues, Q3 2019 was the best-ever third quarter in GOG.com’s history.
Compared to Q3 2018 an increase was also observed in Revenues from sales of products, mostly corresponding to GOG.com’s
share in sales carried out in the framework of GWENT: The Witcher Card Game and Thronebreaker: The Witcher Tales (governed
by the relevant consortium agreement). Nevertheless, the volume of sales attributable to both of these projects was lower than in
Q1 and Q2. This is mainly due to the fact that the release of the third expansion – Iron Judgement – was scheduled for 2 October,
i.e. after the balance sheet date; consequently, revenues associated with this expansion (including preorders placed in the third
quarter) will be recognized during the final quarter of the year. Note that the preceding expansions were released in the first and
second quarter respectively (Crimson Curse – 28 March; Novigrad – 27 June).
During the reporting period, (i.e. during the third quarter of 2019), future period sales reported by GOG.com corresponding to
preorders – mainly of Cyberpunk 2077 (not reportable in Q3 2019) increased by 4 032 thousand PLN.
A new cost item appearing in the current period (compared to the reference period in 2018) was the Cost of products and services
sold, resulting mainly from depreciation of past development expenses related to GWENT: The Witcher Card Game and
Thronebreaker: The Witcher Tales.
The reported increase (by 1 111 thousand PLN) in Selling costs (compared to the third quarter of the previous year) was mostly due
to costs related to the GWENT project, including the promotion, upkeep and further development of the game. Since the release
of the full version of GWENT, which took place in October 2018, the Group has ceased to capitalize further development expenses
related to the game. Following transition to this new project phase, expenses incurred by the GWENT development team are
recognized directly as selling costs (this concerns maintenance and development costs, including work on the game’s mobile
edition – note that the iOS version was released on 29 October, i.e. after the close of the reporting period).
The surplus of GWENT-related costs attributable to the GOG.com segment in line with the consortium agreement (including costs
incurred during the third quarter of 2019 as well as depreciation of past development expenses) over the corresponding revenues
negatively affected the segment’s current-period result. Concurrently, GOG.com carried on with intensive development work on
the important GOG GALAXY 2.0 project. The initial release of this new technology, carried out in the framework of closed beta
tests, occurred on 24 June 2019, met with enthusiastic reception on the part of invitees. Activities related directly to digital
distribution of videogames on the GOG.com platform and in the GOG GALAXY application – i.e. the core business activities of the
GOG.com segment – retained their upward trend, ensuring a positive net result for the whole GOG.com segment in Q3 2019.
Originally Posted by Couchpotato View Post
Anyway hopes this helps. It has a breakdown of the earned profits.

Link - https://twinfinite.net/2019/11/cd-pr…yberpunk-2077/

Here is the original 88 page PDF version.

Link - https://www.cdprojekt.com/en/investo…t-for-q3-2019/
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