This presentation by Rush Ejdy discusses the business model of video game developer CD Projekt Red. It covers their customer segments, value propositions, distribution channels, customer relationships, key activities, resources, partners, cost structure and revenue streams for their popular Witcher game franchise. The presentation demonstrates how CD Projekt Red has built a solid and growing business through engaging customers and communities over many successful game releases.

1. ASSIGNMENT 4 PRESENTATION
B y R u s h E j d y s
CD PROJEKT RED

2. INDEX
C U S TO M E R S EG M E N T S – S L I D E 3
VA LU E P RO P O S I T I O N S – S L I D ES 4 - 6
D I S T R U B U T I O N C H A N N E L S – S L I D ES 7 & 8
C U S TO M E R R E L AT I O N S H I P S – S L I D ES 9 & 1 0
K E Y AC T I V I T I ES – S L I D ES 1 1 & 1 2
K E Y R ES O U R C ES – S L I D ES 1 3 & 1 4
K E Y PA RT N E RS – S L I D E 1 5
CO S T S T R U C T U R E – S L I D E 1 6
R E V E N U E S T R EA M S – S L I D E 1 7
2

3. 3
CUSTOMER SEGMENTS
W H O W A N T S T O P L AY ?
• Millennial Men and Women: The core
customer target are men and women ages
18-35. The problem being solved is the lack
of an enthralling and engaging action RPG
game with a detailed story and lots of quests
and adventures to go on. This age group have
YouTube videos and devoted social
platforms, like Twitch, where games are live
streamed and chatted about in real time.
3

4. 4
W H Y K E E P P L AY I N G ?
4
• Escaping Reality: The value that is being provided is at
its core, purely entertainment. Although a portion of
the customer base are so engrossed with the game
and the lore behind it, that it becomes a part of their
identity and something that represents their interests
and passions.
VALUE PROPOSITION P1

5. 5
5
• •New Content: A game expansion is a value
proposition; hosted events can be another. Events
may be arranged before, during, or after game
release to promote the game. These events can be
seen as value propositions as they give customers
extra benefits in the form of entertainment by
adding to the overall experience of the game.
VALUE PROPOSITION P2

6. PROPOSITION EXAMPLES
• These examples showcase the variety of
downloadable content CD Projekt RED has
made and produced for its audiences. These
examples include both paid and free DLC that
were available to owners of The Witcher 3:
Wild Hunt game.
6

7. 7
W H E R E C A N W E B U Y T O P L AY ?
7
• Physical Stores: While more and more purchases are
being made through online venues, The Witcher 3
game continues to be released physically through
special editions of their games to physical retailers.
• Online through digital storefronts: GOG.com is a
digital distribution platform for video games and
films. It is operated by CD Projekt RED based in
Warsaw, Poland. GOG.com delivers DRM-free video
games through its digital platform for Microsoft
Windows, macOS and Linux.
DISTRIBUTION CHANNELS

8. 8

9. 9
H O W C A N W E E N G A G E W I T H O U R C O M M U N I T Y ?
9
• Social Media/website: The Witcher 3 game has engaged their
fans through every major social media platform, always willing to
answer fans thoughts or concerns. They even decided to open
their own blog page which will give fans of their titles an insight
into how they come up with ideas and develop their titles.
• Community Outreach: The Witcher 3 game host a variety of
contests, ranging from cosplay to general art. While these may not
seem like much, they do these contents quite often, allowing both
big and small community members to showcase their passion for
their games, and win some cool prizes as well.
CUSTOMER RELATIONSHIPS

10. 10

11. 11
H O W D O W E I M P R O V E G A M E O U T R E A C H ?
11
• Game Engine: CD Projekt RED, the studio behind the Witcher
games have developed their own engine in house for making
their games. Called the RED engine, it provides the developers
with many quality of life features and makes updating code and
other sources much easier than other game engines.
• Press Campaign: The third Witcher game’s press consisted of
both online and physical ads, but the ones that had the most
people talking were the huge 3 to 4 story ads that were posted
on the sides of buildings.
KEY ACTIVITIES

12. M I C H A L K I C I Ń S K I
“CD Projekt RED is a studio built
by gamers, for gamers”.

13. 13
W H AT D O W E N E E D T O B U I L D G A M E S ?
13
• Engineers/Designers: The people in this position will be
responsible for designing and implementing the network layer of
game engines and design constructs and will have influence on its
future shape. Daily responsibilities designing and implementing
the network layer of game engines as well as helping to design
and implement multiplayer features to existing systems.
• Financial Assets: Financial resources allow companies to get
access or acquire the remaining talent needed to produce the
game and its various aspects. Most companies have a problem
with employees, ‘with the game-dev labor market, a shortage of
employees as well as of a limited number of graduates.
KEY RESOURCES

14. 14

15. 15
W H O C A N W E PA R T N E R W I T H ?
15
• Optimization: CD Projekt RED announced the partnering and
collaboration with Digital Scapes, whose studio works in
video game development studio specializing in AAA
multiplayer console and PC game development,
development tool creation, asset production, and cloud
computing. The Canadian partner studio will closely
cooperate with CD Projekt RED on creating and optimizing
technological solutions for use in the development of
Cyberpunk 2077.
KEY PARTNERS

16. 16
W H AT I S T H I S G A M E ’ S C O S T O N T H E C O M PA N Y ?
16
• Development Costs: A game development process may
take from one month to a few years. You will sum the costs
of a development team with rights, devices and software
costs and get the right amount. So, a game can cost you
from $500 for a simple version with limited features to
$300 million for an action-adventure video game.
• Rights Payment: Andrzej Sapkowski, author of the Witcher
book series, sold the rights to the book series to CD Projekt
back in 1997, and turned down a profit-sharing agreement
in order to secure a fixed sum of 35,000 PLN
(approximately $9,350).
COST STRUCTURE

17. 17
H O W W E L L W I L L I T S E L L ?
17
• Game Sales: In March 2016, CD Projekt Red reported that the
game had shipped nearly 10 million copies worldwide. ‘By
the end of 2017, the series as a whole had sold over 33
million. By June 2019, that number had risen to over 40
million, with The Witcher 3: Wild Hunt accounting for over
half of that figure. As of May of this year, CD Projekt RED
reported that sales exceeded 50 million copies sold.
REVENUE STREAMS

18. 18
I S C D P R O J E K T R E D A S O L I D C O M PA N Y ?
18
• Based on my research, CD Projekt RED holds a solid and ever
efficient business model that will only get better. Their revenue is
only getting higher year by year and their newest game Cyberpunk
2077 has been one if not the most anticipated game of the decade,
and it releases in only a few months. With the success of the studio,
developmental costs are not an emergent issue for CD Projekt RED,
while their community outreach continues to spread to more and
more people, with over 50 million copies sold of their previous
game many are invested into seeing the success of this company.
There are no current business issues that the studio needs to
address, nothing is holding themselves back.
CONCLUSION

19. THANK YOU, ANY QUESTIONS?
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