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[Lunatic_Gamer]

“Some good news for CD Projekt RED and the fans of the studio. The creator of Cyberpunk 2077 and The Witcher video game series is now worth $8 billion in the market. According to the latest stats, the company is now the second biggest game developer in all of Europe. CD Projekt RED is only tailing Assassin’s Creed creator Ubisoft, the company that’s worth between $8.5 to $9.5 billion.”

Despite Releasing One AAA Game Every 4-5 Years, CD Projekt Red is Now Worth $8 Billion

CD Projekt RED is now worth $8 Billion, it is now the second biggest game development studio in all of Europe, only tailing Ubisoft.

respawnfirst.com

 

[Wizav]

It has to be related to GOG ... they are probably doing well with that digital game store.

 

[LazyParrot]

It has to be related to GOG ... they are probably doing well with that digital game store.

GOG barely makes any money. This is entirely thanks to the brand value of The Witcher and the hype for Cyberpunk.

 

[BouncyFrag]

The next Witcher game will be juggernaut as fuck.

 

[MiyazakiHatesKojima]

They deserve every success mainly for creating GOG, in my opinion.

 

[Halo is Back]

Fuck.....I should have bought some stock in them before TW3 came out

 

[Herr Edgy]

Wow. Barely less than Ubisoft and Ubisoft is a global player with about 12k employees if I remember correctly.

Shame I'm not a fan of their games, but I do enjoy their tech talks.

 

[kittoo]

Good for them and they deserve this.
Though it is weird that they are as big as Ubisoft while having only one or two franchises, while Ubisoft has so many juggernauts and pumps them out every year. Strange are the ways of valuations.

 

[lyan]

a google search shows it has a PE ratio of 304, that's .... unhealthy

 

[FranXico]

If this means GOG will stick around the way it is, I'm happy.

 

[Herr Edgy]

a google search shows it has a PE ratio of 304, that's .... unhealthy

Can you explain what that means? Something about their worth being 300 times their actual earnings?

 

[Punished Miku]

The Netflix show is probably increasing exposure a bit too, but I guess they don't get money from that.

I guess they're following the Rockstar model in terms of game release schedule. It works for only a handful of developers.

I'm shocked they're on par with Ubisoft honestly.

 

[xrnzaaas]

The Netflix show is probably increasing exposure a bit too, but I guess they don't get money from that.

I guess they're following the Rockstar model in terms of game release schedule. It works for only a handful of developers.

I'm shocked they're on par with Ubisoft honestly.

Netflix has more influence than some people think. Formula 1 popularity greatly increased (especially in the US) after Drive to Survive documentary series and the same is now happening with The Witcher (for both Sapkowki's books and CD Projekt's games).

 

[DiscoJer]

Shouldn't it really be one AAA game, period? The first two Witcher games were not AAA.

 

[lyan]

Can you explain what that means? Something about their worth being 300 times their actual earnings?

Loosely yes, 300years of current profits to repay a share bought now.
Usually you would see a PE somewhere between 10-40 so people still buying their shares now is betting on Cyberpunk to be a gigantic success, though it's more muddled when there is anticipation, and anticipation of other's anticipation etc.

 

[hemo memo]

Despite Releasing One AAA Single Player Only Game Every 4-5 Years, CD Projekt RED is Now Worth $8 Billion

 

[Herr Edgy]

Loosely yes, 300years of current profits to repay a share bought now.
Usually you would see a PE somewhere between 10-40 so people still buying their shares now is betting on Cyberpunk to be a gigantic success, though it's more muddled when there is anticipation, and anticipation of other's anticipation etc.

That's insane. So basically share holders are super confident in CDPR. Great for those with shares before, but buying now would seem unlikely to bring you any real profits, right? Cyberpunk is certainly going to be a success, but I doubt it's going to be so huge that it validates that 300.

 

[lyan]

That's insane. So basically share holders are super confident in CDPR. Great for those with shares before, but buying now would seem unlikely to bring you any real profits, right? Cyberpunk is certainly going to be a success, but I doubt it's going to be so huge that it validates that 300.

Not necessarily ultra confident since everyone, more or less, knows what everyone else knows in the market generally (for the big players) so they definitely have a reasonable estimate, It is why I think it is "unhealthy" now since it really is just a means for people to gamble against each other (kinda like poker, though to many that is what the stock market is about).

Impossible to say (as always) whether buying now would bring any profits, it could still go up 20% or even higher over the next weeks/months when more people happen to bring money to the table, but yes I wouldn't suggest anyone inexperienced to touch this.

 

[Fuz]

Being pro-consumer WORKS.


Take notes, other publishers.

 

[HaveButOneLife]

How much were they worth when they started development on Witcher 3? If anybody deserved such success, it's definitely them.

 

[Gargus]

Well CD projekt is part of gog.com it's the same company. So the sales from gog.com factor into that.

They have had other games outside the mainline series. They have had 10 witcher games in total if you could DLC for the mainline series. One of which is gwent which is a quite popular and has microtransactions for cars packs and such.

They own all witcher IP rights. Meaning Netflix pays them for the show.

Witcher has a lot of merchandise also from comic books, soundtracks, figures, t shirts, cups, jewelry, etc.

Even owning sites adds value like their various websites including reddit.

Unreleased products also add value. Especially ones as hyped as cyberpunk.

 

[Gargus]

Being pro-consumer WORKS.


Take notes, other publishers.

No, making products people want works. Truth be told I don't give a fuck how nice and friendly and pro consumer a company is, all I care about is the product and if I want it or not.

Not being consumer friendly works just fine. Activision, Bethesda's, blizzard, ea and so on still make buckets of money because they make products people want. A ton of companies are consumer neutral as they don't even address them much and they do fine also. Sure they may bitch, but they still buy them because at the end of the day it comes down to the product.

 

[yuadesa]

thats what happens when you support your games and customers. Witcher 1 and 2 both got tons of support and revamped enhanced editions totally free, just to do right by their customers. besides being a game of the generation Witcher 3 was great value at launch, got lots of free support, and expansions that are well worth their money and set most other developers to shame.

 

[mckmas8808]

GOG helps

 

[vaibhavpisal]

GOG barely makes any money. This is entirely thanks to the brand value of The Witcher and the hype for Cyberpunk.

Brand value and hype also isn't money.

Setting up a gaming store is super expensive, especially with strong following. Gog would be much more valuable than money it makes.

 

[Dragon Lord]

This just goes to show it isn’t necessarily to release a ton of games at a high frequency. It works just fine to take the time to craft seriously high quality games.

 

[Mista]

The Polish firm, which is the parent company of Witcher game developer CD Projekt Red and the owner of PC digital distribution platform GOG, has seen its market capitalisation jump approximately 17% in the past two months alone.

That’s despite the company delaying the release date of Cyberpunk 2077, one of the industry’s most eagerly anticipated games, from its original April window to September 17, 2020.

CD Projekt’s market valuation was $6.8 billion in December 2019, when Bloomberg said the company had posted a return of 21,000% over the previous decade, comfortably the biggest rise of any stock then listed in the Stoxx Europe 600 Index.

By way of comparison, European games industry heavyweight Ubisoft’s current market valuation is $9.8 billion, behind Take-Two ($12.88 billion), Electronic Arts ($31.29 billion), Nintendo ($47.19 billion) and Activision Blizzard ($49.45 billion).

Other companies with gaming arms have larger market valuations, including Microsoft, Sony and Tencent, but their businesses are more diversified than the publishers listed above.

In December 2019, CD Projekt signed a new agreement with The Witcher book author Andrzej Sapkowski which will see both parties continue to work together.

It grants CD Projekt extra rights, as well as confirming the company’s title to The Witcher intellectual property in video games, graphic novels, board games and merchandise.

CD Projekt said in June 2019 that the Witcher games had sold more than 40 million copies across three releases since launching in 2007, although that figure is now likely significantly higher.

US physical sales of The Witcher 3: Wild Hunt in December 2019 were up 554 percent compared to December 2018, according data from market research firm the NPD Group.

The significant year-on-year increase coincided with the release of the live-action Netflix series, which Netflix claimed is itself on target to become its biggest debut season for a TV show to date.

CD Projekt’s market valuation hits $8 billion | VGC

Value has risen 17% in the past two months alone…

www.videogameschronicle.com

 

[HarryKS]

Grossly overvalued. Like many other stocks though. But hey, enjoy the gains longs.

 

[Mista]

 

[Pidull]

Better to get it on GOG tho

 

[Mista]

Better to get it on GOG tho

I mean its their own platform but only the stupid that will ditch Steam.

 

[zeorhymer]

Weird thing to write about. Their revenue has been in decline year over year from a high in 2015.

 

[Elektro Demon]

Weird thing to write about. Their revenue has been in decline year over year from a high in 2015.

It's gonna go up pretty soon.

Spoiler

cyberpunk

 

[it_wasn't_me]

Buy CDPR, MS! Before Cyberpunk launch. Later it will be, maybe, 10 bil. But, fuck it, even if will be 10$ bil. in the end. You have moneeeeey!

 

[Dontero]

Grossly overvalued. Like many other stocks though. But hey, enjoy the gains longs.

More like actual value is finally reaching its appropriate value.
Witcher 3 is huge success likes of only few games achieved.

Cyberpunk2077 is so hyped that i expect really to break GTA like numbers. Maybe not crazy GTA5 numbers but 50mln should be possible with that much hype assuming game will be good. Once they do that they are effectively second rockstar.

 

[Mista]

Buy CDPR, MS! Before Cyberpunk launch. Later it will be, maybe, 10 bil. But, fuck it, even if will be 10$ bil. in the end. You have moneeeeey!

Its impossible. CDP are heavily supported by their government

They'll only be stupid to be acquired by anyone honestly

 

[it_wasn't_me]

Its impossible. CDP are heavily supported by their government

They'll only be stupid to be acquired by anyone honestly

You think that polish government wouldn't accept 10$ bil.? Don't underestimate politicians.

 

[Mista]

You think that polish government wouldn't accept 10$ bil.? Don't underestimate politicians.

FYI, Poland is a rich country.

 

[Gargus]

Well they also own gog.com

All of their websites even like redkit add value to them.

The witch alone has been made into 10 games including dlc. Gwent the tcg one has microtransactions so that brings in a lot.

They own merchandise licenses to witcher stuff including the netflix show, toys, figures, shirts, jewelry, etc.

Then like cyberpunks hype alone added a lot of value to the pile.

Course I don't care how much money any company makes. It doesn't effect me. All I care about is do I like their products.

 

[KingdomHeartsFan]

God dam. Good to see a company that doesn't fuck over their fans get rewarded.

 

[diffusionx]

For context this is over 3x what MS paid for Minecraft back in 2015. It seems high IMO.

It's gonna go up pretty soon.

Spoiler

cyberpunk

Cyberpunk would already be priced into it.

 

[EverydayBeast]

If money mattered to gamers these stats would mean something.

 

[CyberPanda]

Now watch EA buy them

 

[Mista]

Now watch EA buy them

In their dreams that is locked behind a $10 DLC

 

[CyberPanda]

In their dreams that is locked behind a $10 DLC

Lmao

 

[molasar]

Its impossible. CDP are heavily supported by their government

They'll only be stupid to be acquired by anyone honestly

We already have threads regarding it. It is a public traded company but its combined shares available on the market do not even make a control stock.
That is why it is hard to acquire it.

FYI, Poland is a rich country.

It is a country with a huge potential. Although parasites in power still waste it. Thus its citizens do not thrive at all. They just turn them into modern slaves.

 

[Darkmakaimura]

Good.

I adore CD Projekt Red mostly because of GOG.

Really happy to hear they're doing well. I want to see GOG continually growing and making its mark as the place for DRM free games.

 

[killatopak]

Thanks Henry Cavill.

 

[Siri]

Good to see a company that doesn't fuck over their fans get rewarded.

You mean like deliberately releasing their first game unfinished because they ran out of money and needed to release on time for the (back then) lucrative Christmas market.

Or the way they fixed their first game.... after an entire year had passed.... but instead of apologizing, decided to call their ‘patch’ The Enhanced Edition, which, golly gee whiz, they gave to us for free! Thanks CDPR, you’re the best!

Or the way they bragged about being DRM free and then attempted to sneak Securom into the disc manufacturing process.

Or the the quite frankly pathetic attempt to showcase The Witcher 3 by presenting bogus footage - not even a heavily modded Witcher 3 in the year 2020 looks as good as the bogus demo did.

Or the way they constantly groom their fan base by removing parts of their games and then presenting it later on as ‘free DLC’.

Nah, this developer doesn’t fuck with its fan base. Horse crap. This developer has the single biggest PR machine in all of gaming.

 

[Dontero]

Its impossible. CDP are heavily supported by their government
They'll only be stupid to be acquired by anyone honestly

CDPR only received small grant after tw3 was released which was shared among other few studios.
They are not heavily supported by government.

Also shares on market do not count toward 51% So entire ownership is hands of heads of studio.