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Cyberpunk 2077 Has Cost Founders $1 Billion

Video game development is a costly endeavor. However, the development costs don't stop after a game releases. Post-launch content obviously also needs dough, but more importantly, if a company releases a buggy product, it will cost that company even more money, either because it will have to funnel funds into fixing the game or because of lost potential revenue. Cyberpunk 2077 released in a fairly buggy state, and the public outcry has forced CD Projekt Red's hand. The company had to apologize for the game's launch state, but CD Projekt Red isn't done paying for this mistake. Turns out Cyberpunk 2077's cavalcade of glitches might be the most expensive in gaming history.


According to Bloomberg, Cyberpunk 2077 has decimated CD Projekt Red on several fronts. Of course, the damage dealt to the studio's reputation is well-documented, but the possibly more devastating issue is stock prices. As of Dec. 11, CD Projekt Red's stocks had dropped 29% within one week, and by Dec. 15, the stock plummeted even further. By the time the company started to recover, its shares had already lost one third in value, costing CD Projekt Red and its founders over $1 billion.

The blow dealt to CD Projekt RED's reputation (and bank account) is almost unheard of, but it is far from insurmountable. BOS Bank SA analyst Tomasz Rodak told Bloomberg, "In only a couple of days, CD Projekt fell from the most adored studio to the most hated one. Restoring trust is not impossible, but would need much time and effort."


Investment and financial firms such as Morgan Stanley and Barclays Plc echo Rodak's opinion. They expect that CD Projekt Red will have to rework its post-launch update schedule to salvage its name, revenue, and Cyberpunk 2077. The main victim of this development might be the game's multiplayer component. Originally, the game mode wouldn't have seen the light of day until 2022, but now its release will probably be pushed back even further. Originally, CD Projekt Red's Chief Financial Officer Piotr Nielubowicz told investors the multiplayer mode features its own development team, but the severity of Cyberpunk 2077's bugs could require the company to call for all hands on deck. Cauterizing the wound to CD Projekt Red's reputation caused by a buggy product takes priority over creating a new one, especially if the problems of the main game could potentially infect its multiplayer.

The sooner CD Projekt Red fixes Cyberpunk 2077's last-gen bugs, the sooner it can rake in the revenue and make up for its $1 billion loss.