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Although 2020 promises to be a landmark year for Polish game maker CD Projekt (OTCMKTS: OTGLF; WSE: CDR), the first half of 2019 is already swinging its favor. The company reported a 26% revenue increase to €50 million ($55.1 million) as part of its first-half 2019 financials.
The Witcher leads CD Projekt revenues
The large bulk of revenues came from its in-house development studio CD Projekt Red, which is famous for creating the mature-themed fantasy action role-playing franchise, The Witcher. It accounted for 62% of the company’s revenue.
The Witcher 3: The Wild Hunt released in 2015 and its two subsequent expansions released launched in 2016. According to CD Projekt, sales of the games are steady compared to last year, making the legacy series a main source of revenue for the development studio. The company credits sales to increased awareness of the game through the promotion of its upcoming title Cyberpunk 2077.
Spin-off games include Thronebreaker: The Witcher Tales and the Witcher-themed collectible card game GWENT. The studio is currently in the process of bringing GWENT to mobile platforms.
“Our financial result for the first half of the year was again mainly affected by sales of The Witcher 3, which remain strong,” said Piotr Nielubowicz, CFO for CD Projekt. “This further confirms our belief that investing in top-quality games pays off, and that such games may continue to sell well for many years. In the first half of 2019 gamers actually purchased more copies of The Witcher 3 than during the first half of the previous year.”
GOG gets a boost from Blizzard games
The remaining 38% was brought in by CD Projekt’s digital games storefront, Good Old Games (GOG). Sales were lifted when it added classic Blizzard games such as Diablo and the first two Warcraft games earlier this year, which went on to become the fastest-selling titles in the service’s history.
The company also noted “very strong” initial pre-orders for its highly anticipated sci-fi role-playing game Cyberpunk 2077, which is being developed in house. Upon its release
Cyberpunk 2077 and more Witcher games ahead
Now known for two major franchises, CD Projekt is focusing its resources on the final phase of development for Cyberpunk 2077, which releases April 16, 2020 on PlayStation 4, Xbox One and PC.
At the same time, the company hinted that there could be more games coming to The Witcher franchise in addition to the Nintendo Switch port of the Witcher 3 on October 15. That’s hardly a surprise, given the ongoing success of the game four years after its initial release, but the news is giving fans more to look forward to.
“Managing two separate major franchises, along with several independent development teams, enables the company to conduct parallel work on several projects and smoothens its long-term release schedule,” CD Projekt noted. “This migration towards a dual-franchise model supported by several independent product lines also permits optimization of manufacturing and financial activities, mitigates important risk factors and makes it easier for company employees to seek professional fulfillment.”
