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[boskee]

CD Projekt Red representative has responded to a financial question added on their official corporate forums.

By the end of June 2015 platform split looked as follows:

PC - 30%
Consoles - 70%

25% - Digital sales (50% of the total revenue)
75% - Retail

Recently released financial data excludes the proceeds from Expansion Passes/preorders.

80% of all marketing costs were covered by the distributors - namely Namco Bandai, Warner Bros and partners in other regions.

Around 4.3% of all copies were sold in Poland.

 

[Durante]

No wonder everyone wants to have their own DD platform. 30% of 50% is a lot.
(CDPR already enjoys that benefit)

 

[Chariot]

I don't quiet get how digial can be only 25% of sales, but 50% of revenue. How many people are buying products more expensive when buying digital?

 

[Sheriff_Battlesnake]

Oh wow. Weird to me (I'm sure I'm uninformed) it seems huge! Like it would take up all of the internal hard drive huge.

 

[Nirolak]

No wonder everyone wants to have their own DD platform. 30% of 50% is a lot.
(CDPR already enjoys that benefit)

This is why we've also seen several other publishers like the Blizzard half of Activision or EA maintain their own digital distribution platforms if they have large PC titles.

Oh wow. Weird to me (I'm sure I'm uninformed) it seems huge! Like it would take up all of the internal hard drive huge.

Well, you have to install the game regardless, even on consoles.

 

[Obliterator]

That console vs PC sales split is crazy considering how PC oriented the franchise has been and that this is the first one ever for Playstation.

Also publishers covered 80% of marketing. Thats a huge chunk of the cost of a game. Combine that with a 25% digital distribution and this must have been massively successful for CD Projekt Red financially

 

[boskee]

I don't quiet get how digial can be only 25% of sales, but 50% of revenue. How many people are buying products more expensive when buying digital?

Basically in digital CDPR only has to share with platform owner. When it comes to retail they are also paying their distributors + manufacturing costs etc.

 

[Tacitus_]

I don't quiet get how digial can be only 25% of sales, but 50% of revenue. How many people are buying products more expensive when buying digital?

They get 100% of the sale on GoG.

 

[nynt9]

I don't quiet get how digial can be only 25% of sales, but 50% of revenue. How many people are buying products more expensive when buying digital?

PC is probably majority digital and they make more money off PC sales considering they don't have to pay platform fees and distribution. This isn't the only reason but it's among one of them.

 

[Lakitu]

That console vs PC sales split is crazy considering how PC oriented the franchise has been and that this is the first one ever for Playstation.

Also publishers covered 80% of marketing. Thats a huge chunk of the cost of a game. Combine that with a 25% digital distribution and this must have been massively successful for CD Projekt Red financially

So we'll get a Witcher 4?

 

[Dictator93]

That console vs PC sales split is crazy considering how PC oriented the franchise has been and that this is the first one ever for Playstation.

Also publishers covered 80% of marketing. Thats a huge chunk of the cost of a game. Combine that with a 25% digital distribution and this must have been massively successful for CD Projekt Red financially

Yeah it does seem like it was very successful for them. I have enjoyed my time witht he game so far: have not beat it yet though due to just how much time I sink into these types of games...

So we'll get a Witcher 4?

Maybe next gen. I think they will only release one more current gen game given their ambitions.

 

[erawsd]

I don't quiet get how digial can be only 25% of sales, but 50% of revenue. How many people are buying products more expensive when buying digital?

In the case of CDPR its because they self published the game digitally and they own their own store on PC. So they are getting a much bigger piece of the cake on the digital side.

 

[Tenebrous]

Will be interesting to see how that percentage changes in the next year or two. I'd expect the PC/Console gap to close somewhat.

 

[Obliterator]

Basically in digital CDPR only has to share with platform owner. When it comes to retail they are also paying their distributors + manufacturing costs etc.

Yep. Also keep in mind that the majority of PC sales were GOG sales which CDPR gets a 100% return from and it makes sense. I'm betting a very large chunk of that revenue split is directly from GOG copies of Witcher 3

 

[gobe]

I don't quiet get how digial can be only 25% of sales, but 50% of revenue. How many people are buying products more expensive when buying digital?

Boxing the product for retail & selling in shops costs money, retailers get a cut, publishers get a cut and as a result, devs get less of a cut from the full price. They get a much bigger cut of the price with digital, and especially more (if not 100%) through GOG since it's their own platform.

 

[Grief.exe]

Total sales we actually fairly evenly split between the three platforms.


Interesting to see the sheer amount of revenue from digital sales, the PC version will continue generating massive revenue due to the proliferation of sales and inherent forwards compatibility.

 

[Nere]

For a franchise that was PC only the console % is huge. Now I wonder how much of it was on ps4 and how much on xbox.

 

[Aceofspades]

Total sales we actually fairly evenly split between the three platforms.


Interesting to see the sheer amount of revenue from digital sales.

I dont think X1 split is any close to PS4, last we heard was %65 for PS4

 

[SolidSnakex]

For a franchise that was PC only the console % is huge. Now I wonder how much of it was on ps4 and how much on xbox.

The Witcher seems to be primarily popular in Europe, so that should indicate what the split would be like for consoles.

 

[Nordicus]

25% - Digital sales (50% of the total revenue)
75% - Retail

So essentially, one digital sale is worth three retail sales on average

 

[Ushay]

Does that digital figure include console sales? I personally bought digital on console.

I can definitely see consumers inevitably moving to a majority digital market.

 

[Hamster Plugin]

I really don't get why PC gamers in Europe buy those €60 digital copies instead of €40 retail copies. It's why we can never have any good things.

Console digital is also overpriced, but at least consumers respond to it by buying retail.

 

[gundamkyoukai]

So essentially, one digital sale is worth three retail sales on average

If your talking about GOG it would be around there .

 

[boskee]

Does that digital figure include console sales? I personally bought digital on console.

I can definitely see consumers inevitably moving to a majority digital market.

Yes, it's total digital sales.

 

[viHuGi]

PlayStation 4 doing business as always.

Game was amazing, glad it sold well... Some problems on Ps4 but it was a great experience, not as good as MGS in my opinion but great game.

Congrats CDP, much love

 

[Nordicus]

If your talking about GOG it would be around there .

Although the GOG pre-order copy gave you quite the significant discount iirc.

 

[idlewild_]

PC - 30%
Consoles - 70%

25% - Digital sales (50% of the total revenue)
75% - Retail

PC is 30% split but total digital sales were only 25%? Considering some people must have purchased the game digitally on consoles the amount of physical purchases for PC is pretty high.

 

[Gipsy Danger]

Not bad at all. PC at a third of total sales is pretty great.

 

[Palette Swap]

No wonder everyone wants to have their own DD platform. 30% of 50% is a lot.
(CDPR already enjoys that benefit)

Actually, in an ideal world where they would sell every digital copy themselves, revenue would be even more lopsided in favor of digital as this figure probably includes PSN and XBL sales where they still get 30% shaved off. So yeah, having your own DD platform in this day and age is a huge advantage (although I have no idea what the operating costs would look like).

It's also worth mentioning they were aggressive on digital, even on consoles, as they offered 10% off preorders IIRC. In a world where publishers go out of their way to have digital follow RRP, that's something.

 

[Grief.exe]

I dont think X1 split is any close to PS4, last we heard was %65 for PS4

So roughly 30/30/40 split between the platforms, fairly even.

Considering so much revenue is generated per digital sale, the PC version will be immensely valuable going forward.

PC is 30% split but total digital sales were only 25%? Considering some people must have purchased the game digitally on consoles the amount of physical purchases for PC is pretty high.

European PC sales are weighted much higher towards physical than the Americas.

 

[Chariot]

Basically in digital CDPR only has to share with platform owner. When it comes to retail they are also paying their distributors + manufacturing costs etc.

They get 100% of the sale on GoG.

PC is probably majority digital and they make more money off PC sales considering they don't have to pay platform fees and distribution. This isn't the only reason but it's among one of them.

In the case of CDPR its because they self published the game digitally and they own their own store on PC. So they are getting a much bigger piece of the cake on the digital side.

Boxing the product for retail & selling in shops costs money, retailers get a cut, publishers get a cut and as a result, devs get less of a cut from the full price. They get a much bigger cut of the price with digital, and especially more (if not 100%) through GOG since it's their own platform.

Oh yeah, forgot about that. Thanks guys!

 

[Jibbajabbawockky]

Interesting to see the sheer amount of revenue from digital sales, the PC version will continue generating massive revenue due to the proliferation of sales and inherent forwards compatibility.

Yeah, especially if these numbers are only from launch to end of June, so that's only about 1 month post release.

 

[Crawl]

No wonder everyone wants to have their own DD platform. 30% of 50% is a lot.
(CDPR already enjoys that benefit)

I would still bet that Steam sold more copies than GOG did though.

 

[Denton]

Wow, so PC version is probably as profitable, or more, as PS 4 version, due to its digital prevalence where every digital copy gives CDP lot more than a retail copy.

My guess is the split could be around 30% PC, 20% Xbone, 50% PS4, where both PC and PS4 give very close actual profit.

In any case, I am very happy about this success, the best game of all time deserves it. Now if only CDP could give us more expansions than just two...well maybe they will.

 

[Obliterator]

So essentially, one digital sale is worth three retail sales on average

For the average game? Not at all. Its higher than retail no doubt but not 3x.

Witchers will be very high due to GOG. CDPR gets a 100% return on copies sold through GOG and we know from numbers CDPR themselves have released the majority of Witcher 3 PC sales were GOG copies.

 

[Haloid1177]

I'll probably own Witcher 3 on both PS4 and PC by the end of the year, since I can actually run it now and never have played the first two. Happy to see it sell on console so well though.

 

[theprodigy]

For the average game? Not at all. Its higher than retail no doubt but not 3x.

Witchers will be very high die to GOG. CDPR gets a 100% return on copies sold through GOG and we know from nimbers CDPR themselves have released the majority of Witcher 3 PC sales were GOG copies.

Don't forget that they don't have to pay the publisher for digital sales.

 

[erawsd]

I would still bet that Steam sold more copies than GOG did though.

The initial report from a month (or two) ago had GOG ahead of Steam sales.

 

[Dr. Kitty Muffins]

I bought my copy digitally on the PS4. I'm so moody with games that it helps not having switch out discs - especially when your waiting on a patch to get back in.

 

[4Tran]

PC is 30% split but total digital sales were only 25%? Considering some people must have purchased the game digitally on consoles the amount of physical purchases for PC is pretty high.

The PC physical version came with a lot of goodies and it includes a GOG key, so it's a lot more attractive to buyers than the average game.

Wow, so PC version is probably as profitable, or more, as PS 4 version, due to its digital prevalence where every digital copy gives CDP lot more than a retail copy.

.
To be fair, CD Projekt is in the unique position of having their own digital distribution platform and having a very strong PC-centric pedigree. Without these, most AAA games wouldn't be as successful on PC. The only other game I can think of that are in about the same situation would be Bethesda's Elder Scrolls and Fallout games.

 

[Boombox On]

I would still bet that Steam sold more copies than GOG did though.

And you'd be quite wrong.

 

[spekkeh]

Will be interesting to see how that percentage changes in the next year or two. I'd expect the PC/Console gap to close somewhat.

Probably, the post mentions that the vast majority of revenue at the beginning of a game life cycle is based on retail, but due to limited shelf space the percentage slowly shifts in favor of digital. Then again, the consoles now have a lot of digital sales too, and their consumer base is still expanding rapidly.

On the other other hand, this is unit sale percentages, and ain't no competing with steam sales.

 

[bananafactory]

Pc gaming alive and well

 

[Percy]

There's something kind of funny about the best selling version being on the only platform W3 released on that had no prior connection to the franchise.

 

[Nordicus]

For the average game? Not at all. Its higher than retail no doubt but not 3x.

Witchers will be very high due to GOG. CDPR gets a 100% return on copies sold through GOG and we know from numbers CDPR themselves have released the majority of Witcher 3 PC sales were GOG copies.

Even so, I was expecting closer to 2-2.5x figure because of that one pie chart that explained that publisher gets $27 out of $60 retail purchase.

Given that PC digital pre-orders had a decent discount, and that Steam and console digital copies in particular should have driven down the average revenue on sale a bit because of the respective cuts, 3x is still a very large difference even in this particular case.

 

[benny_a]

Game deserves more than 100%. I call for a recount!

 

[mephixto]

I would still bet that Steam sold more copies than GOG did though.

Probably in the long run, just because Steam wide user base that guarantee more exposure and sales, but GoG got more during launch period.

 

[mejin]

PlayStation 4 doing business as always.

Game was amazing, glad it sold well... Some problems on Ps4 but it was a great experience, not as good as MGS in my opinion but great game.

Congrats CDP, much love

PS4 version should be what? At least 40%?

Well, the great news is the game really sold well. I'm really happy for CDPR.

 

[patapuf]

They sold more copies on GOG than steam. They disclosed that in an other thread.

 

[Nzyme32]

I don't quiet get how digial can be only 25% of sales, but 50% of revenue. How many people are buying products more expensive when buying digital?

Retail has - distribution cost, retailer margin, publisher cut, platform royalty for consoles, returns costs and probably more

Digital has no distribution costs and particularly on PC, no retail margin / publishing cost / platform royalty when sold via GoG, which did more than half of the PC sales.

Digital on PC will get them 70% of the revenue via other stores like Steam, or 100% with their own service GoG. Retail has all the previously listed costs that nets them less than half of the revenue from each sale.