LogInWith the recent disclosure of Cyberpunk 2077's production costs, the value of shares has been lower than the company might expect.
Image credit: CDPR, Cyberpunk 2077: Phantom Liberty
On October 6, CD Project Red witnessed a notable decline in the value of its shares. As reported by Bloomberg, following the commencement of trading, the company's shares dropped by 8.2% to reach 109 PLN, which is $25, per share.
This decline in share value might be attributed to investor reaction regarding the costs associated with the Cyberpunk 2077: Phantom Liberty DLC.
Today we've reported on the expenses connected to Cyberpunk 2077 that the company faced. CDPR disclosed that it had spent more than $120 million on Cyberpunk 2077 since its launch in 2020. According to statements from the developer, approximately $125 million was invested in various aspects to enhance Cyberpunk 2077. Around $40 million was specifically dedicated to bug fixes, next-gen console compatibility, and the significant 2.0 update. Moreover, an additional $84.3 million was invested in the development of the Phantom Liberty DLC for Cyberpunk 2077. The development costs for the expansion were estimated at approximately $62.7 million, with an extra $21.6 million allocated for marketing efforts, as disclosed by the development team.
"The high budget for development and marketing means that the supplement has not reached the break-even level. More importantly, it may mean that investors underestimate the value of future games," Kacper Kopron, the analyst, told Bloomberg.
As for now, we can see that the shares' drop is 7%, which might indicate that the shares' value is slowly starting to rehabilitate. Here is the data:
Some more news on CDPR, Adam Kiciński, the CEO of the company, is leaving his position at the beginning of next year. He'll take on the role of Chief Strategy Officer until 2025. If you want to learn more, have a look at our recent article.
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