CD Projekt’s Q3 Reports Shows GOG Struggling

You and I both know numbers are awful things, but try telling my accountant, Bernard Black. I think he loves them. According to Eurogamer and GamesIndustry.biz, CD Projekt gave its Q3 Reports for 2021, and it is not all sunshine and glitchy Cyberpunk 2077 rainbows at the Polish company’s digital storefront, GOG. The developer’s side seems to be up, but the troubling side does come from the retail portion that pertains to GOG, down from last year’s net profit to loss margin.

Breaking down the numbers, the sales of Cyberpunk 2077 has pushed revenue for the company overall up 38% ($34.7 million) as profits dropped 30% ($3.92 million). When CFO Piotr Nielubowicz spoke of GOG, he said: “Regarding GOG, its performance does present a challenge, and recently we’ve taken measures to improve its financial standing.” He went on to state, “we’ve decided that GOG should focus more on its core business activity, which means offering a hand-picked selection of games with its unique DRM-free philosophy.” He ended this with the mention of team restructuring to be taken place following this downfall of profits.

Despite significant additions to the storefront in Q3 of 2021, such as classic Star Trek games, Psychonauts 2, and others, the storefront’s revenue only ticked up 3% ($10.1 million). Given those numbers, “only” does seem like odd phrasing. However, the company also points out a net loss of $1.14 million, a notable jump from last year’s $31,000 in losses. According to GamesIndustry.biz, the year’s losses amass to $2.21 million compared to gains of $1.37 million in Q1-3. The company also mentioned what is going on with Cyberpunk 2077 and The Witcher 3: Wild Hunt‘s PS5 and Xbox Series X/S upgrades.