CD Projekt, the Polish video game maker renowned for its blockbuster titles, has reported a significant decline in its third-quarter profits for 2023, with net profits falling by 61.5%. This downturn comes despite the successful launch of the highly anticipated expansion for Cyberpunk 2077, titled Phantom Liberty, which was released on September 26, 2023. While the expansion received positive reviews and sold over 4.3 million copies within two months, the overall financial performance of the company reflects broader challenges within the gaming industry. The reported revenues for the quarter were approximately 443 million PLN, indicating a strong sales performance but overshadowed by rising operational costs and market pressures.

The decline in profit is particularly notable given that CD Projekt had previously enjoyed a robust financial position following the initial release of Cyberpunk 2077. The game's troubled launch in December 2020 led to significant reputational damage and financial losses, prompting the company to pivot towards enhancing its existing titles and developing new content. The release of Phantom Liberty was part of a strategic move to revitalize interest in the Cyberpunk franchise and demonstrate CD Projekt's commitment to delivering high-quality gaming experiences. However, despite these efforts, the company's net profit for Q3 2023 was reported at 203 million PLN, a stark contrast to previous earnings and indicative of ongoing challenges in maintaining profitability.

In addition to the profit decline, CD Projekt's financial report highlighted a net profitability rate exceeding 50% for its CD Projekt RED segment, which encompasses its game development operations. This segment's performance was bolstered by strong sales of both the expansion and the base edition of Cyberpunk 2077. Moreover, GOG.COM, CD Projekt's digital distribution platform, experienced an impressive revenue increase of over 90% year-on-year. These results suggest that while certain areas of the business are thriving, overall profitability remains under pressure due to high development costs and competitive market dynamics.

Looking ahead, CD Projekt is focused on expanding its franchises beyond video games. The company has announced a collaboration with Anonymous Content to develop live-action projects set in the Cyberpunk universe. This move is aimed at reaching wider audiences and diversifying revenue streams beyond traditional gaming sales. Furthermore, CD Projekt plans to release an Ultimate Edition bundle for Cyberpunk 2077, which will include both the base game and the Phantom Liberty expansion on December 5, 2023. By leveraging its intellectual properties across different media formats, CD Projekt hopes to enhance its brand presence and drive future growth despite current financial setbacks.