Recent financial data from CD Projekt RED shows that subscription services like PlayStation Plus and Xbox Game Pass can still generate strong profits, even though some people believe they may hurt traditional game sales in other instances. The company reported a 60% increase in profit margins, and part of this growth comes from royalties earned through games included in these subscription services. Cyberpunk 2077 and The Witcher 3 are key examples, as both titles continue to perform well.
Of course, it also helps that both games still sell steadily year after year. However, the financial results clearly show they are also making big money from being included in subscription services, with the company even pointing out these successes in their earning call. The outcome likely depends on the specific agreements between CD Projekt RED and platform holders like Microsoft and Sony, but in this case, the deals appear to be very favorable.
At the moment, Cyberpunk 2077 is on both PlayStation Plus and Xbox Game Pass. The Witcher 3 is also on Game Pass, but only in the higher priced plans. Because of this, CD Projekt RED keeps earning steady money from these services. These results suggest that adding games to subscription services could be very profitable, in particular for titles that have already had major success in the market. Once a game reaches a later stage in its lifecycle, subscription services can give it another way to keep making money.
Overall, CD Projekt RED’s results show that putting games on Game Pass and PlayStation Plus can still make good money, depending on the deals they make. What do you think? Are subscription services good for games, or do they hurt sales? Let us know in the comments.
In other news, CD Projekt RED has officially confirmed that Project Hadar, its first original intellectual property, has moved past the concept stage and has now progressed into the conceptual prototyping stage, entering pre-production.
