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CD Projekt Has Surpassed Ubisoft to Become Europe's Most Valuable Video Game Company
- Thread starter His Majesty
- Start date
I don't think any game company has as much riding on one game as CDPR does on Cyberpunk. No pressure!
How is that even possible? CDP has exactly one studio and one franchise, while Ubisoft has almost 50 studios and several mega blockbuster franchises. The only way I can image this making sense is if CDP is making hella bank from GOG, but I can't see that being the case either.
It isnt really. They make 3 times more revenue from CDPR games than from GOG (and if we look into profit, it is even worse):
uPlay accounts to probably 15% of Ubisoft earnings (ca. 40% of their PC market this year)... which is a pretty big amount.
Which is sad tbh. GOG deserves better.
Stock is based on hype and expectations. CDPR is a hyped company in a small pond so the numbers can get quite crazy.
The whole growth is factored in doesn't make it any less bullshit. If Cyperpunk fails I bet CDPR would be having to borrow money to fund their next project whereas UBI can have a couple of games fail and still be okay.
The way these things are looked at and valued is kind of insane.
The way these things are looked at and valued is kind of insane.
I think high is an insane understatement and I think this might just end up hurting CDPR. I'm not sure if they actually realize what state they're in - At this point, unless Cyberpunk is nothing short of a revolution, they're gonna get a lot of shit for the stuff they said Cyberpunk will deliver. To me it almost feels like they took some cues from the Peter Molyneux playbook, stating that 'this game will do EVERYTHING!', which can only result in gamers being disappointed once they find out that it's really 'just' a game after all. I think it's always important to manage expectations and let the fans do the word of mouth thing, especially considering how insanely difficult it is to ship a great game, let alone a revolutionary product.
Except people already play Ubisoft games and buy truckloads of them, 11 of their games released this gen sold more than 10 million units. Additionally Siege has made over a billion dollars for Ubisoft by now.
Market valuation like this has less to do with game quality or how many people are playing it, and more to do with hype.
Especially since they've only made 3 full scale games (outside of Gwent and Thornbreaker) and only blew up after the 3rd game as the first two were among niche games cause so few people played them relatively speaking despite being "quality".
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This is riding on investors hopes for Cyberpunk 2077 mostly.
what did cdpr said and showed thats not gonna be delivered?
Pretty sure they straight up own it. Atleast when it comes to Witcher.
Talent wins.
www.bloomberg.com
Oh wow. It's on the 11th position no less. The only gaming company on the list.
50 Companies to Watch in 2020
Bloomberg Businessweek picks the stocks you should keep your eye on.
www.bloomberg.com
OK so this doesn't make any sense. Cyberpunk 2077 will need to do GTAV numbers and that most likely isn't happening. I'm excited for it, but too much riding on one game.
Pretty sure they have several studios in Poland (with more than 800 employees according to their website).
Regardless of whether people like them or not- people trying to argue that Ubi games are not successful is certainly entertaining to see.
Plenty of people play Ubisoft's games. 10 of Ubi's releases this gen sold over 10m each. That's phenomenal.
11 Ubisoft titles sold more than 10 million units in this gen
AC Unity AC Odyssey AC Origins Far Cry 4 Far Cry 5 Watch Dogs 1 Watch Dogs 2 R6 Siege Ghost Recon Wildlands The Division 1 The Division 2
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To think this is where they got started making games:
Growing a company's tough as nails. Kudos to the team.
Growing a company's tough as nails. Kudos to the team.
They haven't made any claims in the same like as Peter Molyneux. The hype was largely built up by the media over the E3 2018/2019 demos.
Maybe something to do with Ubisoft also having a strong presence in North America.
just stupid stock inflation and speculation.
Some folks think Cyberpunk will be the next GTA V, breaking the récord for biggest entertainment launch in history (surpassing both GTA V and Endgame)....... Myself included.
I would bouy CDPR stock if i had the cash
This is it fellas. Valuations are not based on actual monetary value based on revenue, they're based on potential.
Best example for that is imo Snapchat, which at some point was valued at 20 billion, despite not making money. However, due to their large user base and their massive popularity CDP is valuable, as they have the potential to generate absolutely massive amounts of revenue.
i would be cool with that, finally a cyberpunk project that's a commercial success
For games they have the rights, but the IP still belongs to Andrej Sapkowski.
From what I could gather CDPR is their only game development studio. But I guess it's as other have said, you don't need games when you have hype.
They sell a lot, but I imagine their operating expenses are much higher too. Which is not to say that CDPRs valuation is built a lot on sentiment, I can't say that Ubisoft generates the same amount of goodwill.Plenty of people play Ubisoft's games. 10 of Ubi's releases this gen sold over 10m each. That's phenomenal.
11 Ubisoft titles sold more than 10 million units in this gen
AC Unity AC Odyssey AC Origins Far Cry 4 Far Cry 5 Watch Dogs 1 Watch Dogs 2 R6 Siege Ghost Recon Wildlands The Division 1 The Division 2
OP
OP
I think you missed the boat on that one. Current stock value is based on Cyberpunk 2077 being a massive success. I am confident that it will be just that, but I doubt there's a lot of profit to be made with buying now.
Have they really made a lot of crazy statements about what you can do? Personally, a lot of my hype for the game has been deflated because of the mostly "been there, done that" things they've said about it.
There's an even better story than that...they originally started out as game importers. Because no one really sold legitimate games in Poland and they started just around the time Poland transitioned from communism (under USSR) to a market based economy.To think this is where they got started making games:
Growing a company's tough as nails. Kudos to the team.
Basically they single handedly kick-started Poland's video game industry from both sales perspective and then later from a game development perspective.
In a capitalist sense, this seems like a lot of hype. I'm sure Cyberpunk 2077 is going to be badass and sell a ton, but I doubt it's going to justify CDPR having a higher market value than Ubisoft. Ubisoft has the quantity and sales volume that CDPR does not. Even factoring in the increased operational costs that Ubisoft has from churning out multiple AAA games per year, they sell so many copies of each game that I just can't see it.
That said, on a purely subjective quality level, I'd take one CDPR release over a dozen Ubisoft AAA snorefests.
That said, on a purely subjective quality level, I'd take one CDPR release over a dozen Ubisoft AAA snorefests.
