| HIGHLIGHTS: CD Projekt video games on Cyberpunk 2077 delay
Following are highlights from video games developer CD Projekt’s conference call held after the company announced another delay of the premiere of its much-awaited Cyberpunk 2077 release, to December 10. The teleconference was hosted by CEO Adam Kicinski, board member and CFO Piotr Nielubowicz and board member, SVP Business Development Michal Nowakowski. NEW RELEASE DATE: “We are firm.” – CEO Kicinski. “Realizing on November 19 is possible and was possible” but “having these three more weeks gives us a chance to fix this and that.” “The decision was not easy but we know there is just one release and the first impression is crucial” so in the long-run the decision is beneficial. “Better initial reaction to the game always works in favor of more sales. That is why we are delaying, we don’t have to but having this extra time gives us more certainty that everything will be in the game when we release.” ABOUT THE DELAY: “This situation is different” compared to previous changes to the deadline – the game for PC is ready and plays well on next-gen consoles and the company is finalizing the process concerning current gen consoles. GAME ITSELF: “We are really sure we have something amazing in our hands” and once the game is released, “everyone will understand” why it was so difficult. “Don’t get us wrong, we are kind of internally stressed on the one hand, but on the other we feel very strong about the game.” and “We are super happy with what we will deliver.” 2020 RECEIPTS: “The time for the game on the market [this year] is shorter, we will have smaller revenues but still comparable,” Nielubowicz said, underlining that in the case of ‘The Witcher 3″ 90% of sales in the premiere quarter came in the first four weeks. “Pre-holiday period should also support sales on the market.” PRE-ORDERS: The ratio for pre-orders between ‘The Witcher 3’ and ‘Cyberpunk 2077’ at the same stage before the premiere “is continuously very satisfying.” CD Projekt expects no major cancellations of pre-orders because of the delay. AVERAGE SELLING PRICE: “We believe we are a premium title, we don’t have to give any extra incentives.” (NO) CONTRACTUAL FINES: “there are no penalties we would be facing from any of our partners.” MARKETING COSTS: “We will have to reschedule the marketing campaign and such a rescheduling will most likely entail higher spending,” Nielubowicz said, adding it’s too soon to offer any exact cost. “There is gonna be some extra supporting budget for sure to account for the change,” one of the officials also said. FEEDBACK: Feedback “gives us a lot of confidence.” Those who completed the game say they have never played a game like this before.” – board member Nowakowski IMPACT OF DELAY ON EXTENSIONS: “We expect no impact on extensions.” FUTURE PROJECT (IMPACT OF THE DELAY): CD Projekt plans some “organizational changes” in technical departments. “Too many things were put together at late stages.” – CEO Kicinski biznes.pap.pl |
