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All-In On Cyberpunk 2077: CD Projekt Red 2018 Profits Down 45% Due To More Spent On Development

CD Projekt Red saw its profits plunge by nearly 50 percent in 2018, mostly because the developer is really pushing hard into new games.

The company is working on launching Cyberpunk 2077 and on all of its games, it spent about 70 percent more on development than it did during 2017.

It should be noted that just because profits go down, it doesn't mean that the company isn't doing well. Clearly company executives see spending money on game development as an investment, and with CD Projekt Red also promising a bold E3, it looks like buzz about its new projects are already hitting headlines.

Of course, many of us remember the company's epic Witcher 3, which is still a popular game on all consoles and PC despite being released in 2015. The company is making an announced AAA RPG that will be released by 2021, which rumors say is likely another Witcher game.

Screenshot from Witcher 3. Credit: CD Projekt Red

 

Sales revenues also fell 32% from 2017, but CD Projekt Red is careful to say that isn't the main cause of the lessened profits. Rather, the chief financial officer (Pitor Nielubowicz) has said it's due to increased spending on development costs, publishing and marketing -- which again, sounds like the company is making a big push for future releases.

Interestingly, the company is preparing for growth. Tweak Town reports that the company bought a new office in Warsaw, Poland. It already has 800 people in the company, but the new office space should provide even more room for growth.

While these huge titles are still very much under development, the company has released some smaller projects in Q4 2018. Those were Gwent: The Witcher Card Game and Thronebreaker: The Witcher Tales. Revenues reached their highest point of the year in the fourth quarter of 2018, likely on the strength of these two new releases.

A mobile version of Gwent will be released for iPhone in fall 2019, and the company says it will be treating the Gwent game overall as a service, with updates and features coming every month -- not to mention several huge expansions every year. It's great to see so much forthcoming content for Witcher fans.

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