NEW YORK (BLOOMBERG) – A yr for the reason that botched premiere of CD Projekt’s Cyberpunk 2077, issues have not received a complete lot higher for the struggling Polish video-game studio.
The shares are down 54 per cent in that point and analyst value targets point out an additional 15 per cent draw back over the approaching 12 months.
It’s a far cry from the hype that surrounded the launch of the futuristic role-playing sport that had been touted as the following in a line of blockbusters that culminated with the third instalment of the Witcher sequence in 2015.
The place analysts had initially anticipated Cyberpunk gross sales of 30 million items within the yr after the sport’s launch, they now count on 17.3 million copies to have been offered in that point, in response to the common of 9 estimates compiled by Bloomberg. That features 13.7 million offered in pre-orders and at across the time of final yr’s launch.
“2021 has illustrated how lengthy and bumpy the highway to rehabilitation will likely be,” mentioned Mr Matti Littunen, an analyst at Bernstein. “Fixing Cyberpunk, which is the important thing for viewers relationship, will take some time.”
At the same time as Cyberpunk is lastly getting higher evaluations due to a number of patches, redemption stays distant. In 2022, when the studio plans to launch a brand new, technically superior model of the sport for next-generation consoles, analysts see gross sales rising to solely 5.3 million items from 3.6 million for 2021. They’re additionally unsure about common costs, as Cyberpunk continues to be offered at a reduction to its launch value of US$59.99 (S$81.86).
Aside from lower-than-expected gross sales numbers, the corporate has additionally confronted authorized challenges after it was sued in a California district court docket by traders who misplaced cash betting on Cyberpunk’s success. The plaintiffs don’t straight maintain CD Projekt inventory; they purchased American Depository Receipts that commerce on United States exchanges and should not sponsored by the corporate. The American Depository Receipts misplaced 59 per cent since Dec 10, 2020, the sport’s launch date.
Within the lawsuits, they accused CD Projekt and its managers of deceptive traders by saying that the sport was full and playable forward of the debut. Shortly after launch, the sport was pulled from Sony Group’s PlayStation retailer, solely to return there in June this yr.
This week, the corporate introduced it began talks to succeed in an settlement with the plaintiffs. CD Projekt declined to touch upon the possibilities of a possible settlement when contacted by Bloomberg however mentioned that the “potential settlement ought to on no account be construed as acceptance by the corporate or members of its administration board of any allegations expressed within the plaintiffs’ court docket filings”. The deadline for the settlement draft is Jan 13.
Till now, CD Projekt has not launched new knowledge for unit gross sales. Third-quarter income missed estimates, underlining worries that Cyberpunk’s glitches will drag on its recognition for longer. There’s additionally concern that the studio’s efforts to enhance Cyberpunk hamper work on different initiatives, together with a doable subsequent model of the Witcher sport.
“There is a excessive threat that there will not be any upside, particularly as the corporate trades above fundamentals and can rely on income from one sport solely for a few years,” mentioned Mr Piotr Bogusz, an analyst at Erste Securities Polska.