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CD Projekt SWOT & PESTLE Analysis

ID : 52897753| May 2021| 15 pages

COMPANY PROFILE -CD Projekt

Business Sector :Video Game Creation & Distribution

Operating Geography :Poland, Europe, Global

About CD Projekt :

CD Projekt is a polish video game designer, publisher, and distributor headquartered in Warsaw, Poland. In May 1994 Marcin Iwiński and Michał Kiciński formed the CD Projekt. The company conducts its business in the field of electronic entertainment focusing on two key areas: 1.Development and distribution of world-class videogames via the CD PROJEKT RED development studio which was formed in 2002, creators of the globally acclaimed The Witcher videogame series, currently also working on other projects, including the upcoming AAA release: Cyberpunk 2077; 2. digital sales of vidgames directly to customers from around the world via GOG.com and GOG Galaxy platforms. The Studio’s newest release includes The Witcher 3: Wild Hunt for the PC, PlayStation 4 and Xbox One, and the game was released simultaneously in 15 language versions, on all key markets, which involves Europe, the Americas, Asia, Australia and Africa. Along with the globally available digital edition of the game, box editions were made available in 109 countries. In 2021, the company plans to release another of its AAA RPG title, to expand its core franchises with additional media content and product lines, the rollout of additional language localizations of the GOG.com platform. The premiere of a new game CYBERPUNK EDGARRUNNERS is scheduled to be rolled out in 2022. In "Gamescom Awards 2020", CYBERPUNK 2077 clinched the ‘Best of Show’ award.
CD Projekt's Unique Selling Proposition or USP lies in it being the industry’s leader in creating role-playing games. CD Projekt's mission statement reads, "To create revolutionary RPGs which go straight to the heart of gamers from around the world".

CD Projekt Revenue :


$ 0.521 million - FY ending 31st December 2019
$ 0.362 million - FY ending 31st December 2018

Competitive Analysis of CD Projekt

SWOT
PESTLE

The SWOT analysis for CD Projekt is presented below in a matrix followed by the detailed analysis report

Strengths
Weaknesses
1. Strong expertise in game creation and distribution of video games
2. Strong Proprietary software REDengine assists in the development of complex and quality role playing games
3. GOG GALAXY 2.0, the proprietary software helps to access games regardless of platform
4. Successful history of bringing the best innovative games in the market
1. Product marketing are making up a significant expenditure costs which are rising on a y-o-y basis
Opportunities
Threats
1. Growing demand of consumers interest for gaming content
2. Availability of skilled workforce in software engineering and game designing is propelling startups to emerge in gaming industry
3. The evolving of e-sports as a profession is making gaming industry a reliable career option
1. Growing malware threats and cyber threats on the gaming industry
2. Huge availability of pirated editions in the market
3. Rising phishing attacks on the user accounts
4. Growing competition in the gaming industry
5. Data leaks and auction on the dark web
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of CD Projekt

Strength

This section is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threats

1. Growing malware threats and cyber threats in the gaming industry: Gaming industry has been ruthlessly impacted by hacker and malware attacks which made them lose their customer confidence and money. Passionate gamers had a tough time due to these bizarre disruptions. As per industry reports between July 2018 to June 2020 there has been 100 billion attacks on the gaming industry. The ransomware attack on the CD Projekt infrastructure has forced the company to defer the release of the much-needed patch for their flagship game Cyberpunk 2077. The attack has also debunked the personal details of employees to the hackers. Data breach is the major concern for the organizations and the organizations are making efforts to ramp up security and improve their backup, and infrastructure facilities.

2. Huge availability of pirated editions in the market: Piracy is a huge concern for the gaming industry and it is as old as long as the industry itself. Piracy is impacting the initial sales window of the new launches impacting at a massive scale. As per the statement from CD Projekt, the most popular, show stealer game, Witcher 2 from their franchise had a pirated copy of a whopping 4.5 million in the market compared to a paltry legal copy sale record of only one million. Pirated edition repositories like Torrents and Pirates Bay have become an easy source for millions of users to download the pirated editions. In order to put things into perspective, CD Projekt has taken steps to improve the security levels of the code and also endeavored to make it uncrackable by any crack software while in parallel working to reduce productions costs and drive higher profit margins.

The remaining section under "Threat"is available only in the 'Complete Report' on purchase.

Major Competitors :

  • Ubisoft
  • Rockstar Games
  • THQ Nordic
  • Bungie
  • Wargaming.net
  • Nintendo

Major Brands :

  • Gwent
  • The Witcher
  • ThroneBreaker: The Witcher Tales
  • CyberPunk 2077
SWOT & PESTLE (combined)
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References used in CD Projekt SWOT & PESTLE Analysis Report

1. Strategy of the CD projekt years the for Group Capital years the 2016 - 2021- https://www.cdprojekt.com/en/wp-content/uploads-en/2016/04/strategy-en-v2.pdf
2. What is GOG Galaxy 2.0? The multi-platform PC games launcher - https://www.pocket-lint.com/games/news/153054-what-is-gog-galaxy-2-point-0
3. Vision for the Future of Computing – Performance Begins Now - https://supermicro.brighttalk.live/summit/4935-vision-for-the-future-of-computing/?
4. Financial summary report - https://www.cdprojekt.com/en/investors/financial-summary-report/
5. Cyberpunk 2077 troubles cost CD Projekt founders more than $1bn - https://www.gamesindustry.biz/articles/2020-12-17-cyberpunk-2077-troubles-cost-cd-projekt-founders-more-than-usd1bn
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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In-text: (SWOT & PESTLE.com, 2021)

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CD Projekt SWOT and PESTLE analysis has been conducted by Shyam Kumar Kundrapu and reviewed by senior analysts from Barakaat Consulting.

Copyright of CD Projekt SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

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