Change is happening in the European game market amid the difficulties of Ubisoft, CD Projekt. The Polish game studio has surpassed publisher Assassin’s Creed in terms of market capitalization.
Change is happening in the European game market amid the difficulties of Ubisoft, CD Projekt. The Polish game studio has surpassed publisher Assassin’s Creed in terms of market capitalization.
Polish media outlet GRY-OnLine.pl reported that CD Projekt shares are trading at PLN 132.26 (€28.23) per share, up 34.9% over the past six months. Shares of Ubisoft are 21.31 euros per share, down 47.5% over the past 6 months. The most recent drop in share price was due to the company’s report to investors, in which the company announced a “restructuring”. This includes canceling 3 more games, lowering revenue forecasts and cutting jobs.
This also affects Ubisoft’s market value. It currently has a market capitalization of around 2.67 billion euros, compared with 13.33 billion PLN (2.84 billion euros) for CD Projekt. This is not the first time The Witcher developer has surpassed Ubisoft. In May 2020, CD Projekt became Europe’s most valuable game company, surpassing the French publisher. This came just a few months before Cyberpunk 2077’s unsuccessful launch sent CD Projekt stock into a downward spiral.
CD Projekt Growth Index.
So the company has been struggling to regain the trust of both players and investors ever since. However, the recent success of Cyberpunk 2077 thanks to the next update as well as an effective new business strategy helps strongly revive CD Projekt.
A lawsuit against the CD Projekt Red studio by disgruntled investors has been settled for substantial damages of US$1.85 million. The class-action lawsuit, filed in Manhattan, Myx on behalf of the company’s investors, alleges CD Projekt Red knowingly released a game “with numerous bugs”, prompting some stores to remove the title. this game and refund the player. This is said to have damaged the company’s reputation and caused financial damage to investors who believed in CD Projekt Red.
One year on from filing, CD Projekt Red chose to end the proceedings with a settlement to be paid for by the company’s insurance company. In a statement shared on the CD Projekt Red website, the company said the reason for the settlement was largely about money, as it did not want to take the case to the US court system.
All those who purchased or held shares of CD Projekt Red during 2020 are eligible to apply for a settlement fund, with the total amount divided among all investors. This would equate to approximately $0.49 per qualifying share.
At this stage, it doesn’t appear that the deal will have a major impact on the company and its day-to-day operations. CD Projekt Red currently has several major products in development, including sequels to Cyberpunk 2077 and The Witcher as well as other spin-offs and remakes. The conclusion of this particular class action will clear the way for the company to refocus on development, although CD Projekt Red may have many hurdles to overcome.
