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CD Projekt has achieved financial independence, says CEO.

F

FACE

Banned
Shamelessly ripped off from the Witcher Forums

CD Projekt has about 26,5 million złotys (~$8,32 million), which allows the company financial independence, which is a "key factor to success", said CD Projekt CEO Adam Kiciński.

"Currently, we are working on two large productions (The Witcher 3: Wild Hunt and Cyberpunk 2077) and two smaller titles (the first one will launch after the new Witcher). We need a financial base to fund our publishing plans. This gives us financial independence, which is a key factor to success. It's good to have a financial background in this industry. It allows you to work on even cooler projects and maintain a high margin, since you don't need to depend on advance payments from distributors" - said Kiciński during the conference.

Vice President and CFO Piotr Nielubowicz pointed out that The Witcher 2 cost 33 million zł (~$10,36 million). Currently, the company has it in stock at 7 million zł (~$2,19 million), which will be "activated" along with further sales. Concurrently, "work in progress", including The Witcher 3 and Cyberpunk, is valued at 25 million zł (~$7,85 million).

"We have reduced debt to "unnoticable" levels. Operating cash flow following the first half of the year amounted to 6,3 million zł (~$1,97 million). The development of Witcher 3 and Cyberpunk cost 9 million zł (~$2,82 million) in the first half 2013" - added Nielubowicz.

CD Projekt CEO pointed out that in the run-up to next year's release of The Witcher 3, the company is negotiating further distribution agreements.

"We already have an agreement with Warner Bros and we're conducting further negotiations. We've divided the globe into areas, allowing optimal financial conditions in different territories. In total, we want to have upwards from ten distribution agreements. In addition, we want advance payments from distributors for each geographical area as a contribution and expression of faith in our product " - stressed Kiciński.

The group consists of CD Projekt RED - developer of video games in the RPG genre, GOG - global digital game distribution platform (over 7,5 million games downloaded) and CDP.pl - video game(among others: Blizzard, Sega) and DVD/Blu-ray (among others: Disney, Discovery) distributor in Poland.
Click to expand...

http://www.gazetaprawna.pl/artykuly...jekt-osiagnelismy-niezaleznosc-finansowa.html

Credit goes to Kodaemon for the translation.
 
C

CareFactorZero

Neo Member
I am glad, having independence will ensure them having creative freedom to do things theirs way and not having their chains yanked by a publisher
 
B

BigDug13

Member
Good, I really like this company. Free DLC expansions, going back to tweak/patch older combat engines based on lessons learned when working on sequels, etc.
 
S

Savitar

Member
Anything that allows them to do what they want and put out great games makes me happy.

Though I will always fear for them of a looming buyout from someone like EA.

That thought scares me to high hell.
 
D

diamount

Banned
I'm assuming this means they'll self-publish the smaller games they've got planned but nothing Witcher 3/Cyberpunk scope.
 
F

FACE

Banned
pixlexic said:
Off of one game? Good for them!
Click to expand...

No.

The group consists of CD Projekt RED - developer of video games in the RPG genre, GOG - global digital game distribution platform (over 7,5 million games downloaded) and CDP.pl - video game(among others: Blizzard, Sega) and DVD/Blu-ray (among others: Disney, Discovery) distributor in Poland.
Click to expand...
 
H

Hedge

Member
Can't wait for my first Witcher game. I really, really hope I'll like it. There were areas in Witcher 2 which seemed iffy (after what I've heard).

Didn't know they were doing cyberpunk as well.
 
W

wildfire

Banned
JDSN said:
They should have ended that statement with "Eat a dick, Namco".
Click to expand...

*wonders what this is about*

*searches google*

In the suit, Namco Bandai claimed its rights to publish the Witcher 2 in the region superseded those that CD Projekt had later given to THQ for the Xbox 360 version of the game. Now, a court has agreed.
Click to expand...

*shrugs*

Namco Bandai's complaint surrounding CD Projekt's offering of the game without DRM through Good Old Games was not addressed in this report.
Click to expand...

*agrees with JDSN*
 
P

patjburns89

Member
BeauRoger said:
I hope the actual developers have good working conditions and decent pay.
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Seriously. Witcher 2 was one ne of the most beautiful and well realized games I've played. Hopefully they got paid well after the game shipped.

Also, I still don't know how they got the console port to look that good and not suffer performance wise. They've got some really talented people there.
 
F

Famassu

Member
kotodama said:
More companies need to achieve this and stay that way.
Click to expand...
Unfortunately

1) not all game devs can move to Poland or similar countries with such low wages
2) not all game devs can set up a service like GoG that brings in the money from selling other people's games

This is as bad an example of "this is how everyone should do it" as Valve, as far as it being possible for a large majority of developers goes.
 
L

Lingitiz

Member
Succinct Verbosity said:
This worries me. Like Factor 5 and Free Radical, one franchise can make your studio and one game can break it.
Click to expand...

CDPR has GOG to rely on also. I can see them in a Valve like status in a few years if it continues to do well for them. They've definitely carved out a market for themselves.
 
G

Grief.exe

Member
Fried Food said:
People must not be getting paid much and/or small teams
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Lower cost of living, among other factors, allows them to produce games cheaply.

pixlexic said:
Off of one game? Good for them!
Click to expand...

They also run the GOG digital distribution platform.

Succinct Verbosity said:
This worries me. Like Factor 5 and Free Radical, one franchise can make your studio and one game can break it.
Click to expand...

They have 8 million liquid right now, that can only go up after Witcher 3 releases early 2014.

They are flush.
 
K

kidko

Member
Excellent, may it continue long into the future. We need more of this in the industry. CDPR quickly moved into my top 5 teams since Witcher 1 and 2.
 
E

Epsilon

Banned
That's good for CD-project, but wouldn't the video game development sector in Poland stall with this low-cost model? I mean, the reason a country like Canada became a global hub for video game development is the ability to attract talent from all-over the world, there's so much homegrown talent a small country like Poland could churn out for it's industry to grow.
 
G

gdt

Member
Hedge said:
Can't wait for my first Witcher game. I really, really hope I'll like it. There were areas in Witcher 2 which seemed iffy (after what I've heard).

Didn't know they were doing cyberpunk as well.
Click to expand...

Why don't you just.....you know....play The Witcher 2. It was just on sale for $5 on Steam. The 360 version is $27.55 new on Amazon.

Edit: Unless you're a PS only gamer I guess. Sorry, I forgot there are people like that.
 
L

Lasthope106

Member
I will buy the Witcher 3 and Cyberpunk day 1 at full price from GOG because I really love this guys. They are one of the few studios willing to make truly "mature" games. The first 2 Witcher games are well on their way to become classic cRPGs in the same way that Baldurs Gate, Fallout, and PST were. I just hope that more people are willing to give their two newest games a try.

TucoBenedictoPacifico said:
Not too shabby for a company that was facing bankruptcy just a couple of years ago.
Click to expand...

What, really? I always thought that since they setup GOG everything was pretty financially secure for them.
 
A

Alpende

Member
Great news for them. Those development costs are significantly lower than anywhere else I presume. That's Poland for you I guess.

Still looking forward to The Witcher 3 and Cyberpunk in the long run. Day one buy.
 
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