CD Projekt’s ‘Phantom Liberty’ Sells Over 3 Million Copies, CEO to Shift Role
CD Projekt, Poland’s largest video game maker, recently announced that its highly anticipated expansion to the flagship game “Cyberpunk 2077,” called “Phantom Liberty,” has sold over 3 million copies as of October 3rd. This successful release has not only boosted the company’s earnings but has also paved the way for a change in leadership. CD Projekt’s CEO, Adam Kicinski, will transition to the role of Chief Strategy Officer starting from January 1st, while Adam Badowski and Michal Nowakowski will jointly fill his current position.
The Success of “Phantom Liberty” and CD Projekt’s Future Plans
“Phantom Liberty” marks CD Projekt’s first major game premiere since the bug-ridden launch of “Cyberpunk 2077” in December 2020, which has already sold an impressive 25 million copies. The release of “Phantom Liberty” is expected to further boost the company’s earnings this year. However, CD Projekt does not have any other major new games planned for the next couple of years as they focus on developing new projects.
Production Expenditure and Analysts’ Expectations
CD Projekt estimates that the total production expenditure on “Phantom Liberty” amounts to approximately 275 million zlotys ($62.8 million). This figure came as a negative surprise to some analysts, with Erste Group analyst Piotr Bogusz stating that the high cost of add-on production suggests that their assumptions regarding production budgets for future games may be too conservative. Despite this concern, the market consensus is that CD Projekt will sell between 3 million and 4.5 million copies of “Phantom Liberty” this year.
Market Reaction and Investor Day
Following the announcement and the end of CD Projekt’s investor day, the company’s shares experienced a nearly 5% decline in the last hour of trading and closed with a 6.2% decrease. JP Morgan commented on the investor day, stating that it did not bring any positive surprises and could potentially trigger further short positions in the company’s shares. They also projected that CD Projekt is on track to report 4 million unit sales by the end of 2023, which is below their initial expectation of 5 million and towards the lower end of consensus expectations. JP Morgan further noted that the development budget for “Phantom Liberty” and the modification of the core “Cyberpunk 2077” game exceeded their expectations by 40% and could result in earnings downgrades.
Reception on Steam Platform
On the Steam platform, where digital copies of games for PCs are sold, “Phantom Liberty” has received positive feedback from users. According to user reviews, 88% of the 6,353 reviews rate the game as “very positive.” This positive reception on a popular gaming platform indicates that CD Projekt has successfully captured the interest and satisfaction of gamers with their latest release.
CEO’s Future Plans
In addition to the changes in leadership roles within CD Projekt, CEO Adam Kicinski plans to resign from his position on the company’s management board at the end of 2024. Following his resignation, he intends to run for the supervisory board in 2025. These changes in leadership and future plans demonstrate CD Projekt’s commitment to strategic growth and long-term success.
Conclusion
CD Projekt’s release of “Phantom Liberty” has achieved significant success, with over 3 million copies sold in a short period of time. This success not only boosts the company’s earnings but also allows for a leadership transition within the organization. With CEO Adam Kicinski moving to the role of Chief Strategy Officer, CD Projekt is positioning itself for future growth and development. Despite the high production expenditure on “Phantom Liberty,” the positive reception on the Steam platform and the market consensus for continued sales indicate a promising future for CD Projekt and its gaming endeavors.
