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HomeTechnologyCD Projekt Red: Cyberpunk refunds cost $ 51.3 million

CD Projekt Red: Cyberpunk refunds cost $ 51.3 million

The Spiel is like a sick patient who now gradually comes to a normal level. His development studio, on the other hand, is in excellent health. (Screenshot: CD Project Red)

CD Projekt Red has published the annual report. It also explains why the cost of provisions for the most anticipated game is not so significant. This does not apply to image damage.

$ 51.3 million is a projected reimbursement cost on CD Projekt Red (CDPR), the Cyberpunk developer 2077. The number apparently applies to all digital and physical withdrawals in 2020 and all projected in 2021. In fact, retailers and online stores received $ 10.65 million. The company’s own reimbursements through the hastily set up “Help me Refund” program cost $ 2.23 million. CDPR expects additional costs and lost sales of 34.34 million in 2021. Editors calculated that gamers only complained about 0.2 percent, i.e. one in 500 games.

Financial damage at different levels

If you look at the income side, you will recognize the relevance of these costs, which appear to be high at first glance. The studio has total sales of around $ 563 million in 2020. It left a profit of $ 301 million. Ars Technica calculates that the provision corresponds to just nine percent of sales. Apart from the accounting-related calculation, there is another one: the share price. It stood at $ 31 on December 4, 2020, a week before the start of “Help me Refund”, and closed yesterday at $ 11.68. Investors are already complaining about it. The damage to the image of the gamer community is also likely to be immense. According to analysts, he is currently making the studio a hot takeover candidate.

“Last Generation” as error-free edition

CDPR states that the release of thick update packages prompted Sony to return the game to the Playstation Store. Observers do not rate the effect as particularly significant. If you look at the sales figures, you will understand why: The console accounts for just 28 percent of sales. Only sales on the Xbox account for less: 17 percent. The lion’s share of sales are PC and Stadia sales with 58 percent. Other numbers say 73 percent of sales were digital. Cyberpunk also sold 38 percent in the US, 24 percent in Europe and 20 percent in mainland Asia. The game had a budget of $ 315 million and 530 developers were working on it. In addition, CDPR paid 2,000 voice actors to translate the narration into 18 languages. The studio renewed its promise to release various free DLC this year. Revised last-generation editions of the game should appear towards the end of the year. They will then probably turn out as the game should have been from the start.

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Tyler Hromadka
Tyler Hromadka
Tyler is working as the Author at World Weekly News. He has a love for writing and have been writing for a few years now as a free-lancer.

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